On June 8, 2020, I placed my first ever options trade. It was for a $4.50 strike put on PLUG. Selling that put paid me a seemingly meager premium of $10. 10 bucks doesn’t seem like much, but even back then I knew that $10 on $450 investment was a little more than a 2% return on investment (ROI). A 2% ROI in just 5 days would extrapolate out to more than 100% ROI in a year, not including compounding.
That put was the start of 250+ options trades in the course of the next 52 weeks. There have been some bumps along the way, but the overall result has been phenomenal. Take a look at the options trades I made this past week:
It really shows how far I’ve come. I was able to place 4 trades totaling $9600 of capital (it’s actually $10,100 because I own 100 shares of FUBO at $39), resulting in a total premium of $157 in a single week. And last week I also had $1000 of cash uninvested, which means my total capital was actually $11,100. Now, I have been contributing $75 cash to my account every week, and there have been several other hundred-dollar deposits, which means my total invested cash is around $5000. Subtract that from the total capital and we have around $6100 in total realized profit from premiums. This is truly remarkable considering where I started.
Here’s a more computationally accurate view of my ROI (although it’s actually underestimating the true ROI because my code cannot handle delisted stocks, so I had to remove that stock’s whole history of premiums from my code). According to this, my 1 year ROI is 84%! Truly incredible.
People will say I’ve gotten “lucky” or that the market has been “up” this whole time, or they’ll say something else to take away from these results. That’s fine, they can say whatever they want. To me, the numbers speak for themselves, and the strategy speaks for itself. Selling puts and calls is the only way I can think of that results in consistently high ROI and a high probability of winning. Combined with the power of my algorithm, I have a mechanism that optimizes my trades for me every week and minimizes the amount of time I have to invest each week, which is another crucial benefit.
It’s been a great year, and I want to continue to share my strategy with you, your friends, your family, and anyone else who wants to increase their returns from the stock market.
Happy option selling!
