May 2021 Options Income Report - $4,367.34; Net Liquidity EUR 13,476

The last May, we did a total of 113 trades / from which most were credit spreads and covered calls. Last month we did a lot of options adjustments, by rolling forward and down both put and call options.

There are 65 left open trades with expiry in the next months, with 1/3 (25) expiring this June 

We managed to take $4,367.34 from options income during the month of May, which is about 10.91% of our $40,000 goal for 2021. In total, we have already reached about 61.1i%. On average it would ask to generate about $2,070/mo every month for the next 7 months to reach our goal. Looks doable.

Unfortunately, some $2,500 income this month comes from rolling forward trades from the previous months (mostly February, March, and April). Basically, it means this is not newly earned money.

Anyhow, half of the income will be withdrawn, while for the other half we will buy some PBCT and some other dividend aristocrat stock.

  • Net Liquidity: EUR 13,476 (-EUR 3,340)

  • Securities gross position value: EUR 36,548 (-EUR 25,233)

  • Cash balance: - EUR 570 (+EUR 22,758)

On May 11, we sold stock worth more than $20,000 to keep our cash balance positive

Dividend income

Our dividend income portfolio value now is $17,505.07, which generates about $7.88 (-$27.75) monthly dividend income. a huge drop happened because we sold most of the stock and kept the cash, which is going to be reinvested in dividend stock in future months

Here are all our holdings (as of June 08, 2021)

Trading plan for June 2021 (Option trades & Stock Buys)

We are looking to buy additional 10-20 shares with LI, 10 KO, 6-8 and INTC. Also at the end of the month, we will spend half of our options income to purchase additional PBCT and JNJ stocks. Additionally, we consider purchasing more shares with ARCC stock

For the month of June, we are looking to sell mostly covered calls only on positions already established. We might sell credit spreads on stocks called away. Also, we are experimenting with LEAP options (poor man’s covered call)

From covered calls/credit spreads - we are looking to take ~ $3,000 during the month of June.

Goals for May 2022

This is my favorite part of the reports - trying to forecast/set goals for the next year. But before setting a goal for 2022, let's see what I forecasted/said a year ago (May 2020)

When setting goals for May 2021 options income, we are looking to take at least $1,000 in options income.

Awesome, we smashed this $1,000 goal more than 4 times. Qaudrawesome!

When setting goals for May 2022 options income, we are looking to take at least $3,000 in options income. We hope to get there with more covered calls

At the end of May, we had

  • 13 email subscribers (+6) for Covered Calls with Reinis Fischer newsletter

  • 26 subscribers (+8) for the YouTube channel

Also. I started a new challenge Turning $200 in $150K in 10 years (paid access)