Since May 2024, I’ve been documenting my weekly trades on QQQ, sharing a step-by-step look into my options strategy and the decisions I make to grow my retirement portfolio. Through this series, I aim to demystify the options trading process for everyday investors, breaking down each trade and explaining how I manage risk and income week by week.
Whether you’re new to options trading or just looking to follow along with a real-world strategy, my goal is to provide insights, transparency, and a practical approach to building consistent returns with manageable risk. Each week, I’ll walk through my trades, discuss adjustments based on market movements, and share lessons learned along the way.
As you read, I hope you’ll gain the knowledge and confidence to make informed trading decisions of your own—or simply enjoy watching this strategy evolve over time.
And if you want to see the actual trades being placed in real time, check out the video on my YouTube Channel.
Thanks for joining me on this journey, and let’s dive into my most recent trade update from Friday, November 1, 2024!
I had a couple of curveballs last Friday—my talented business partner and video editor was out working the polls, so I’m taking over the editing process, and I’m nursing a cold. The good news? Options trading lets me generate income without having to leave the house or risk passing along any germs. Let’s get into this week’s trades and explore how I’m managing the portfolio.
Market and Trade Overview
As of Friday, QQQ was trading just below $487 per share, down about $13–$15 from the previous week.
$486 Cash-Secured Put: This position was slightly out of the money, but it was close enough that I wanted to manage it to avoid assignment.
$497 Covered Call: This contract was out of the money, although I might have benefitted from setting it closer to $495 the previous week.
My goal that day was to generate additional income for my retirement while carefully managing risk.
Managing the Cash-Secured Put
With QQQ trading near my $486 put strike, this position had a high likelihood of assignment. Normally, I might have let it expire worthless if I were comfortable taking on more shares, but in this case, I chose to pay the closing cost (about $65) and roll the position to the following week.
For the new contract expiring November 8th, I considered a few options:
Keeping the $486 Strike: This would have generated a premium of about $650, but it carried a high probability of assignment.
Lowering the Strike: Dropping the strike to $480 reduced my capital at risk, which better aligned with my goals. Rolling the contract out one week with a new strike at $480 still brought in a good premium while managing assignment risk.
Rolling the Covered Call
Next, I focused on the covered call. I had bought these shares at $490, so selling at this level would have secured a good profit. But I had been setting higher strike prices to capture potential capital gains in case the shares rallied.
This week, I evaluated two options:
Strike Price at $495: This would have brought in about $477 in premium.
Strike Price at $497: This option would have generated a premium of around $394.
I opted to keep the $497 strike for the week. It offered a solid premium for a one-week roll, and increased my potential capital gains by $200, so I went ahead with the order.
Results and Takeaways
With all trades placed, I recorded a total income of $782 last week. By adjusting the strike price of my cash-secured put and keeping the covered call at $497—$7 above my initial purchase price—I generated additional income while managing risk effectively.
This was a successful week, adding meaningful income to my portfolio and positioning me well for the upcoming week. I’ll be back on November 8th to review the trades and determine the next moves.
If you’re following along with these updates, I hope you’re finding useful insights into how I adapt my options strategies over time to balance income and risk. For those ready to deepen their investing knowledge, I invite you to explore more advanced resources on my website!
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