Having play money is a luxury. I do realize that. Having play money that pays you each month is something I thought not possible. And yet, the combination of dividends and option premiums make this play money an actual source of income.At the start of 2016, I set the goal at 83,33/month or 1000€ for the whole year of 2016. January was great, February was awesome and March is Kickass.
Due to the volatility and moves in the stock market, I was able to write and close far more options than ever: 13 positions in total contributed the result. GDX was by far the biggest with 5 trades and 150 USD in premium. XLE a good second with 46 USD.
The total premium income is 274,5 EUR
To me, this just sounds kickass wonderful. It beats by far my own expectations. Given my monthly goal of 83,33 it is actually 3,3 times my goal!
Time to stop working?
Not even close to that. There are actually traders and bloggers out there that make 5 time or more the monthly income that I make. Kudos to them. Both feed on the ground for me.
I have set my personal limits, I breach them
once in a while each month. So, that is clearly an attention point. I agreed with myself a maximum value of open put positions. I have a hard time keeping my limit. It is not that I double it, I reach 180pct of it. That is clearly an attention point
I might be on a winning streak now, but I am very much aware of the potential loosing streak that might hit me some day. I do not mind rolling trades. This will slow me down as far as getting premium goes. What will really kills me is getting assigned stock above the level of my limit.
March for me is a fat tail month. It would surprise me to reach it again this year. February seems to be more the norm to me. As I am only 3 months into real option trading, it is too soon to say. Lets wait the year end for conclusions.
March is a month that my oil stock pays me. I got 77,01€ paid into my account. This is after all imaginable taxes… There are a lot! There were no trading gains this month
How was your March month and the Q12016?