October Passive Income // Finance avenue

As my regular investing in ETFs is boring as hell, I have introduced play money to add sparks to my portfolio. It has gotten a little out of hand and developed into a serious income stream.

Finance Avenue

On November 18, The financial newspaper organise a free event called Finance Avenue. It takes place in Brussels and allows you to meet brokers, companies, funds managers and alike. They might have some cool goodies as well…! I will be there early Saturday morning. When you go and would like to meet, contact me via the comments or a the contact page

Option Income – 865,68€

October has been a good month for my option trading. I made a record high realised income of 865,68€! That is just amazing.

Option Income October 2017

The income comes from 19 different stock and ETFs. DIS and EBR:ABI being this months biggest contributors to my option income.

YTD, I have an annualised return of 13,4%.

For comparison; the SPY has YTD 15,9%, IWDA, my main tracker has 7,44%, CESL has 24,26% and EMIM 21,37%

I do realize that I have the positive wind of the bull market in my sails. Writing options in a bull market is “easy”.

That is why I am happy to have written my first strangle in October. This is a trading position that is market neutral. It took me almost 2,5 years of option trading before initiating a short strangle. I have read research and I understand the market dynamics: it makes sense to add this trading instrument to my portfolio. I just fear that my current trading fees will reduce the profit from this strategy.

The Elephants

TEVA

Still there, going nowhere… I am curious to see what the stock will do in the coming days, now that the earnings are there.

LB

GONE!

(non disclosed)

No change

Earnings are coming as well and analysts are in general positive… Let’s wait and see!

AMS:AD

No change

Stock is now around 16, that means I made some profit on the 15 puts that I had.

GDX

This will be an eternal elephant. It is part of my setup to balance bad news. It means that I will have short puts to diversify and I will have short calls on the assigned GDX. Not really an elephant. Part of the way I trade. I just need to avoid that it becomes a too big position in my portfolio.

Same size, still a little bigger than I want it to be…

 

How was your October?

 

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8 thoughts on “October Passive Income // Finance avenue

  1. That was an incredible amount you brought in via options. Congrats on hitting that milestone. Looks like you have a pretty good trading plan. I guess, as you stated, writing options during a bull market is less risky (easy). Seems like it by your results. Thanks for sharing.

    Like

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