There are many paths to Financial Independence. Passive Income is what a lot of paths have in common. So does our path. Some might argue that one of our paths is not that passive due to the nature of option trading….
February was an excellent month in option trading. The best month ever since I started in August 2015! Agreed, some is luck, a lot is having a system and taking on risk. The result is 587,87€ of realised profit. This is the best month ever.
Why this high result?
- The bid on Unilever sent the stock way above 44€ This allowed me to close one of my in-the-money positions that I was rolling for quite a while. It generated a nice profit. I had a little side trade as well on UNA. So, thank you Kraft!
- At the end of January, I had a nice windfall. Rather than pumping it into our index funds, I decided to use it as a learning tool for option writing. That money is now reserved for covered put writing on DGI stock I would not mind owning. Off course, I do have some criteria to decide on the strike price I am willing to accept. I will not chase a stock forever. This cash allowed me to write puts that are almost At-The -Money and thus bring in more profit per trade. More details to come in a later post.
Should we start a party?
Not quite yet. I still have too much emotions and greed in my trading. I need to further work on my system and be more mechanical in trading. Not sticking to the system and wanting to squeeze out more, actually makes me sitting longer on some trades that are with me since the summer. Being mechanical would have meant a small profit, and new trades with less risk. A valuable lessons. Trade small, trade often and be mechanical!
We should also honour the small amounts of cash that are sent our way. I got a full 7,28€ in dividend in February. March will be better as the good old Shell will pay me.
How was your passive income?