Welcome to my portfolio update series! As an experienced options trader, I’m here to help you navigate the world of strategic options trading and grow your account just like I have. By following my trades, insights, and risk management techniques, you’ll gain firsthand knowledge of how to build wealth through options trading.
The Starting Line: $5,000 and a Proven Strategy
This isn’t about gambling or chasing quick riches. It’s about applying a disciplined, systematic approach to grow a small account over time.
- Starting Balance: $5,000
- Monthly Contribution: $500 (simulating a consistent investment strategy for steady growth)
- Trading Focus: Cash-Secured Puts, Covered Calls, Credit Spreads
- Performance Target: 2% monthly return ($100 in the first month, compounding over time)
Over the next 15 years, this approach will result in $94,500 invested in total. However, the power of compounding returns dramatically changes the final outcome based on the strategy employed.
- Investing in SPY with an average annual return of 10% would grow this amount to approximately $236,000.
- Applying this 2% monthly strategy, where returns compound systematically, has the potential to grow the account to over $1,030,000—a staggering difference that highlights the power of active options trading.
This proven method allows traders to steadily grow their portfolios while managing risk effectively.
My Expert Strategy: Three Core Approaches
To maximize profits while managing risk, I focus on these three key options strategies:
1. Cash-Secured Puts
By selling cash-secured puts, I generate consistent income while positioning myself to buy strong stocks at a discount. This strategy allows me to profit even if the stock doesn’t move, and if assigned, I acquire shares at a favorable price.
2. Covered Calls
For stocks I already own (or may acquire through selling puts), covered calls allow me to collect additional premium income while managing my stock positions. I carefully select strike prices and expirations to optimize returns and avoid unnecessary assignment risks.
3. Credit Spreads
Credit spreads provide a high-probability, defined-risk strategy that lets me profit from short-term movements. I use bull put spreads and bear call spreads in high-liquidity stocks to efficiently generate income.
By following these strategies, you’ll learn how to build wealth steadily while protecting your capital.
The Goal: Achieving Consistent, Scalable Growth
My target is to achieve a 2% monthly return, starting with $100 in the first month and compounding over time.
This approach isn’t about hitting home runs—it’s about stacking small, consistent wins that lead to exponential growth. By sticking to the plan, my portfolio will outperform traditional investments over time.
Benchmarking Success: CDs vs. SPY
To measure success, I compare my portfolio’s performance against two key benchmarks:
- Certificates of Deposit (CDs): A traditional, low-risk investment that offers predictable returns. I use historical CD rates to assess how my options portfolio outperforms low-yield savings strategies.
- SPY (S&P 500 ETF): The gold standard for market performance, tracking the broader stock market’s returns. This comparison provides insight into how my active trading strategy stacks up against passive investing.
By following along, you’ll see how strategic options trading can beat traditional investments over time.
Full Transparency: Real Trades, Real Results
This blog is designed to provide full transparency into my trading journey. Here’s what you can expect:
- Trade Log: I share every trade I make in real-time—including entry price, exit price, expiration, and premium collected.
- Weekly & Monthly Recaps: I analyze what worked, what didn’t, and how I adjust my strategy for the next cycle.
- Profit/Loss Reports: A detailed breakdown of my portfolio performance, showing exactly how I’m growing my account.
- Lessons Learned: Whether it’s a win or a loss, I explain what happened and how you can apply these lessons to your own trading.
Follow My Trades and Learn to Profit
In the next update, I’ll break down my initial trades, analyze the first month’s results, and compare performance against CDs and SPY.
🚀 Want to grow your portfolio the smart way? Follow along as I share my trades, strategies, and insights. Have questions? Drop them in the comments—I’m here to help!