Passive Income – Jul 2016

The road to Financial Independence is long. Each little step that we can make to reach to goal faster is a nice surplus. Passive income via options is such a step.

Option Income

July has been a nice month for option writing. The markets were very nice and kind to me, yet again. The real question that stays on top of my mind: when will I hit a wall that knocks me off my feet. What will happen at a real market crash? With the markets making new all-time-highs, I started to be a little cautious and slowed down some my trading. I keep my powder dry as they say…

That being said, This month’s income was a new all time high : 577,45 €.

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More than 50 procent of this profit come from my favourite ETF: GDX. Our friendship has been worth a lot to me lately…
For the August outlook, I risk loosing my GDX stock in my playmoney… My covered calls are deep in the money. Next to that, I am positioned for a serious correction. When this does not happen… we will see. I just have a hard time mentally to insure stock now, at all time highs…

Dividend Income

This is an easy one: zero, nothing, nada, rien, niets, nichts, semmi, nic!

Does this bother me? Not at all. As I literally only have a handful of dividend paying stocks, it would be a miracle to have each month an income.

That being said, August will have some numbers to report, just north of 100€. Let’s wait and see…

How was your passive income in July?

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27 thoughts on “Passive Income – Jul 2016

  1. Hey ATL,

    Awesome job at hitting an all time high! That’s great – many dividend investors would be extremely happy with that amount of income.

    It’s all good that this month was $0, it’s the annual total that counts most. We got $7 this month, as you saw 🙂

    Tristan

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  2. Keep it up ATL.
    The markets are definitely getting higher and higher and I’m starting to be more cautious.
    We gotta save up some cash and take advantage of the dip coming. It’s gonna be crazy times so let’s prepare for battle.
    Best of luck to us on our wonderful journey! Cheers my friend.

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  3. hey ATL!
    congratulation on that option premium! keep that up 🙂

    I doesnt matter if you didnt get a dividend this month. the combination of dividends and trading options will make some profits again and again.

    best regards
    Chri

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    1. with the options income, I am patient… For now, I await to see what the government will do. Some party suggests to increase the tax on dividends even more. 27pct is not enough…

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  4. Great month! When I see that your chart started at a little over 100 in January, this is an amazing progression in just a few months. Almost 600EUR of passive income a month is nothing to sneeze at, it’s the equivalent of a tons of dividend stocks or a couple rentals’ cash flow. Congrats.

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  5. Nice work on the options trading this month! The nuances around options is a bit over my head by I enjoy following your updates and lessons. Thanks!

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  6. ATL,

    Congrats on the record high in the options market. I personally haven’t dipped my toes into that water yet, so I’m glad to read about your success story. Records are meant to be broken, and I’m looking forward to reading about how your August went and seeing which dividend stocks will be paying you this month. Cheers!

    Bert

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  7. That’s a pretty awesome total just from options premiums. You would need a pretty large dividend portfolio to generate that kind of income. I have been reading your options and Investment Hunting’s options trades a lot recently. Covered calls, cash secured puts look interesting to me. Is your plan to always sell out of the money covered calls? Or do you ever sell near the money? What site do you use to look at potential options trades? Thanks!

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    1. The plan is to always sell out of the money covered calls. The stock I own, I would like to keep them forever. I tty to sell the calls on a price that is ok for me. An example would be KMI. I bought after the dividend cut, and do not mind selling now at 20. SO, whenever I can sell an out-of-the-money call strike 20, I will do so. I will also roll when I risk of being called away.
      I use dough to see the statistics of the options I want to trade. I do not rely on trading alerts. I trade small and often, like they say on tasty trade.

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  8. Great work on pulling in that option income! Definitely something to be proud of! I’m looking forward to seeing what August 2016 has in store for you. I just recently discovered your blog and I just wanted to let you know that I love it so far!

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  9. WOW! I just started selling put options and can really see how the growth can compound. Very inspired to reach you level of income one day.

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