Options Trading Update
We are half way thru the month of July and here is an update of my options trades. I mainly use the wheel strategy, this is where you start off writing a Cash Secured Put until you are assigned. Once assigned you then reverse coarse and write a Covered Call each time collecting a premium. I stick to stocks or ETF’s I do not mind holding for extended periods of time and as a beginner so should you. Chasing high premiums is great until you get stuck with a stock that tanks and could take months, years to recover.
I currently use two accounts for my Options. I started on Webull because of the low fees on Options Trades, this is where I became comfortable and learned the terminology associated with Options. I recommend their platform and for beginners I strongly encourage you to use the “paper trading” feature so you can learn with play money and not risk hard earned capital. I have a small amount of $5,000 in this account with a little north of $800 in profits. My other account is my Roth with Fidelity and that has $20,000 used as collateral towards CSP and collects a decent rate while sitting in cash.
July has been a relatively quiet month but I have squeezed in a few trades :
Webull Account –
7/3 CSP TQQQ $40Strike Assigned on 7/7 collected $40 in premium
7/3 CSP PARA $17.50Strike Expired on 7/14 collected $12 in premium
7/10 CC TQQQ $41Strike OPEN till 7/21 collected $93 in premium
Fidelity Account –
6/30 CSP NKE $104Strike Expired on 6/30 collected $70 in premium
7/3 CSP NKE $107Strike Expired on 7/14 collected $50 in premium
That’s a total of $169.94 collected and $93 pending open trade(s). As always you can find my Options spreadsheet with all my completed trades here.
I use the premiums collected to add to my positions, this month I have used the proceeds to purchase 4 shares of VICI adding $6.24 in PADI.