At OptionCredits.com, we believe in steady, systematic option selling to generate consistent monthly returns. Our goal is simple: achieve a 2% monthly return by utilizing strategies like covered calls, selling puts, and options spreads. This blog will transparently track our trades, portfolio growth, and performance over time.
The Two-Portfolios Approach
To cater to different types of traders, we will manage two live portfolios:
1. Small Account ($5,000 Starting Balance)
- Starting with $5,000
- Adding $500 per month to simulate an active investor consistently growing their portfolio
- Focusing on cash-secured puts, covered calls, and credit spreads
- Targeting 2% monthly returns ($100 in the first month, scaling up over time)
2. Large Account ($100,000 Starting Balance)
- Designed for those with more capital looking for steady option income
- Using a mix of higher-premium put sales, covered calls on large-cap stocks, and spreads
- Maintaining disciplined risk management while targeting a consistent 2% return ($2,000 per month initially)
Our Trading Strategy
To hit our 2% monthly target, we will primarily focus on three key strategies:
1. Selling Cash-Secured Puts
- Selling put options on high-quality stocks or ETFs that we wouldn’t mind owning
- Selecting high implied volatility (IV) stocks to maximize premium
- Managing risk by choosing strikes at support levels or with at least a 30% probability of profit (POP)
2. Covered Calls
- Selling calls against stocks we already own to collect additional premium
- Using weekly and monthly expirations to maximize cash flow
- Rolling up/out trades when necessary to maintain profit potential
3. Option Spreads for Risk Control
- Using credit spreads (bull put spreads, bear call spreads) to capitalize on directional moves with defined risk
- Trading in high liquidity stocks/ETFs to ensure tight bid-ask spreads
- Avoiding excessive risk by keeping position sizing below 5% of portfolio value
Portfolio Tracking & Transparency
Each week, we’ll update the blog with:
- Trade Log: Details on every trade (entry price, exit price, expiration, premium collected)
- Performance Recap: Monthly return tracking for both portfolios
- Lessons Learned: Reviewing what worked, what didn’t, and adjustments for future trades
- Real-Time Trade Updates: Every trade when opened and closed will be listed in real-time for full transparency.
Why Follow This Journey?
If you’re looking for a realistic approach to growing an options portfolio, this blog will provide:
- Live trade tracking with real money
- Tactical insights on selling options for income
- Risk management principles to protect capital while compounding growth
Whether you’re starting with $5,000 or managing six figures, our goal remains the same: consistent, compounding returns through smart option selling.
Follow along as we build these portfolios and share every win, loss, and lesson along the way!