While still recovering from my great summer ideas, I continue to to do what I like: writing options to gain a passive additional income. October was yet an interestingt month where I extended my knowledge and insights further.
Let us start with a nice round number: 0€.
Hey, that is ok, I am not yet a diviend investors. And in fact, the Belgian government just increased the taxes on dividends from 27 to 30 pct. Add to that the foreign tax, and you pay just below 40 pct of tax on dividends, best case… Imagine you get 100 foreign dividend, that means 85 is left after the foreign witholding tax.Then, the Belgian state takes anoter 30 pct, leaving me with 59,5.
I might just get a second job (A great detailed rant was written by Dividends Are Coming Scroll down to the part below the Nike picture)
Slowly, we are working our way up again. In October, I made 228€ in option income. That is a nice income and for sure a ice return on the limited amout of real cash that is blocked on my trading accounts for this (I use a collateral account to trade options).
Year to date, I am quite happy with my progress. I have now 2385€ income out of trading options. This is income I would not have had otherwise. Just remember, it is not free money. In exchange, I take on quite some risk!
I have also further evolved as a trader. My trading strategy is becmoing more clear. The core principles are
- trade small, trade often (Tastytrade)
- Diversify in trading exposure
It has been a while since I reported these. In October, my KMI stock got called away at 20 USD, realising almost 430€ capital gains on an investment of approx 1300€.
As I still doubt on building up a dividend portfolio, I decided to write a put on the stock again, to buy it back at 19USD. If not, I get to keep the option premium and that is just over 1 year of net dividend on this stock.
How was your October?