Boom. Just like that here comes the March 2014 options trading income report. We’re one step beyond the starting line and already making some progress. All of the Cliff Natural Resources (CLF) trades fall into the income strategy I’m currently working on. Anything outside of CLF is left over from previous trading based on wild and failed ideas.
Examining only the CLF trades, I made $52 during the last two weeks of the month. Based off the starting line of $4,861, that’s a 1.06% return. This return was based on two weeks of trading, which if annualized, equals a 27.56% return over the year. I don’t know about you, but that’s a heck of a lot better than any of my mutual funds performed over the past decade or so!
I’ve removed the paper trading account information because I’m no longer simulating my strategy, but actually implementing my strategy. If I decide to try a new strategy, then I’ll see how well it works in the paper trading account before I work it into my real account.
Monthly Income: $83.04
March 31, 2014 Balance: $ 4,901.54
|Transaction||Option||Quantity||Fill Price||Commission||Net Amount|
|–||Money Market Dividend||–||–||–||.04|
|STC||USO APR 14 37.00 CALL||1||.47||5.00||42.00|
|STO||ADM MAR 14 42.00 PUT||1||.09||5.00||4.00|
|STO||ADM 28 MAR 14 (W) 42.50 PUT||1||.30||5.00||25.00|
|BTC||ADM 28 MAR 14 (W) 42.50 PUT||1||.35||5.00||-40.00|
|STO||CLF 28 MAR 14 (W) 19.00 PUT||2||.11||5.00||17.00|
|STO||CLF 4 APR 14 (W) 20.00 PUT||2||.20||5.00||35.00|
Rinse and repeat. The point of my current strategy is simplicity and repetition. Within the next week or so I’ll post the details of how I came about choosing CLF and the other underlying stocks I’ll use to meet my income goals.