Having a second source of income is a nice thing. It can give a boost to your regular working income. It also brings the prospect of day day exceeding your expenses. The side income stream I work on for now are Dividend Income and Option Premium.
This one is quite simple and easy this Month: 0€
Nothing to worry about. I am considering DGI as a discovery activity for my future income. I play around wThe result for ith some stock and thoughts. A fun experience.
I build a small overview of my DGI portfolio, tracking the moments that the stock goes ex-dividend. This way, I can keep track on what happens and can keep an eye on when to keep an extra eye on my covered calls. I also only log the income when it hits my account. At that time, I know the full net amount that is mine. May looks to be a top month :-). A next step is to track the growth of that income on a portfolio level and on individual stock level. I really like these “I got a raise” posts.
Why not stretch myself? I do not think it is wise to push myself over my risk limits any further. I already go above the value-at-risk I wanted to manage. I do not need a public goal that pushes me in danger territory.
The April result was great, beating my March record. I earned 403€ in option premium this month. This beats my expectations. I have earned via a total of 7 stocks premium income. By fare the biggest earner is GDX. This one alone represents 214€ of the total.
I am also happy that I was able to take a small profit on a long standing option going the wrong way. This frees up some of my capital for better use elsewhere.
Does this mean that all is peaceful and risk free in option writing land? No, it is not. As mentioned, sometimes the puts go very deep in the money and this is something you need to digest well. Stupid mistakes also can cost you money. I made one last week, selling a covered call on my GDX positions. I had a part foreseen for call writing. I overlooked I already had a call open. So, selling a second one should not have happened. As a result, I could now miss out potential gains from the current rally. We will see on May 20.
How was your April income?