By making great monthly income from selling options I have reached Financial Independence sooner than I ever thought possible. In this post and the associated video, I share my options trading results for all of 2021. I go into detail about monthly and yearly trade results. I have been selling covered calls for 15 years but only 15 months ago I started a journey to learn the right way to trade. Currently, I am averaging $2,500 a month using the options wheel strategy. My trades are very passive and only require a couple of hours each week.
I have come a long way from the start of my options trading journey. In my first month August 2020, I earned $1,100 and only did eleven trades. This month (December 2021) I earned almost triple that and did an average of $161 per trade. I share in this video what I learned along the way and some thoughts on goals for next year.
I have included an image of the spreadsheet that shows my total trades during the year.
You will notice that I increased the number of contracts per trade but not necessarily the number of trades themselves. When I started out I did only one contract and then later increased it to two. For 2022 I am planning to increase it to three. Another interesting point is I did longer out expirations later in the year. I found some good premium in both Put and Call LEAPS. A LEAP is just a contract with more than a year expiration.
I did a total of 193 trades and only had one losing trade. However, the one losing trade on MSFT was a big loss. My statistics look good if you do it just by the number of trades. For instance, by the number of trades, I had a 99% success rate. However, by the dollar amount, it was more like 89% success rate.
One of the main reasons I was able to achieve superior results is because I set goals early in the process and tracked my progress. Below are my goals since I began this journey. You will notice that I keep increasing my goals and for 2022 I am hoping to end the year with averaging $3,000 a month. As I mentioned earlier I plan to make similar trades but if I find something with a good premium then I will go from two to three contracts. With the hope of reaching $200 a trade. Not bad when you consider what you would need to do to reach this with something like Uber driving or delivering food. It would be several days of work.
I also decided to add a few other goals to make the year a bit more interesting.
Especially the try new trade goal. I really love learning, so I am hoping to find a few other trades that are not too risky or difficult to implement. I am thinking of revisiting the Iron Condor and trying a diagonal spread. If you have an idea, please leave a comment below.
My journey of learning to trade options has been a great one for me. By making great monthly Income from Selling OptionsI have officially reached Financial Independence. I am not ready to retire but now at least I can do what I want. I have included a few links below that you might find interesting.
Here is the link if you want to go back to my first month (August 2020) and look. https://easyinvestingincome.com/first-month/
I also set up some steps to help people get started. You can find them here. https://easyinvestingincome.com/category/lessons/
If you want to get started fast you can become a patron. I have two membership levels. Investors Club is included for all patrons and contains exclusive content, all my worksheets, and trade alerts. My trader’s club includes Investors Club + Discord and weekly live zoom meetings. The two levels are $10 monthly for Investors Club and $25 for Traders Club.
https://www.patreon.com/easyinvestingincome
Thanks for tuning in and happy trading!’
Good post. I learn something new and challenging on websites I stumbleupon on a daily basis. Its always interesting to read articles from other writers and practice something from other sites.