I have been going on and on about my Dividend Debit Card (Part #1, Part #2, Part #3) over the last three years. It is incredible to receive dividends directly to my Cash App spending card.
This month (November 2023), I am on track to receive $400 in dividends directly to my Dividend Debit Card. I can spend this guilt-free money any way I like without feeling fear or remorse. It’s also outside of any of my household or personal budgets.
I only knew how it felt to be rich once I started using my dividend debit card. $400 may not seem like much, but it’s a lot when you don’t need it.
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It’s safe to say that using my Dividend Debit Card has been my favorite way to spend money until the last few months. Last summer, I created the same debit card goodness, but this time for options trading. The results have been astounding.
The Options Trading Debit Card. From the outside perspective, options trading can be the most risky and dangerous way to make money.
From the inside, it’s genuinely about controlling your fear and greed. It is a profoundly emotional chess game because you’re playing with real money.
I started options trading so that I could write about the process. I am intrigued by how much you can learn by playing this high-stakes game.
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Once I got the hang of selling covered calls and cash-secured puts, I began to have some leftover money. Before I knew it, the money just seemed to grow.
So, I attached a checking account to my Charles Schwab brokerage account. With that connection, my Options Trading Debit Card was born.
How I use my Options Trading Debit Card. I use my Options Debit Card as my weekend “fun” money. It’s a way to give back to my family without destroying the bank.
First thing Monday morning, I set up a Long Strangle inside my Charles Schwab brokerage account. I currently use Palantir (PLTR) for my account and Rivian (RIVN) for my wife’s account.
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Over the week, I wait for my long strangle to make some money. I aim to make $100 to $800 weekly based on my spending on puts and calls.
Once I have made an adequate amount from my long strangles, I cash out and transfer the money to my Options Trading Card the following day (it takes time to process out of a brokerage).
What do I do with my Options money? The sky’s the limit with my Options Trading Card. We have done so much over the last few months that it’s hard even to remember.
We bought a new dishwasher, went to a New Orleans Saints game in New Orleans, went to an Ice Hockey game in Pensacola, went on a mini shopping spree, and my wife is currently in Turkey visiting family (I’m going new week).
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In short, we are having the time of our lives because we learned how to trade options. I never knew life could feel this good, but it comes at a cost.
Can you trade options safely? You can choose how safely you trade options. The cost you pay to trade options is in self-education.
You must do the work to understand things like time decay, earnings calls, technical analysis, volatility, and stock prices. You have to put the work into trade options safely.
With covered calls and cash-secured puts, you know exactly what you will get once you sell them—you choose your risk upfront.
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The closer you set your strike price to the stock price, the more money you make. However, that may not always be in your own best interest.
Sometimes, based on recent stock price action, it’s best to take less money for greater safety. This may mean taking $600 in premiums versus $1,200. As I said, it’s about controlling your fear and greed.
With long strangles, your emotions can be even more challenging to control. Let’s say I buy $4,000 in calls and $4,000 in puts (total $8,000).
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The stock price will eventually go strongly in one direction. If my total rises to $8,300, I cash out and consider it a great week.
However, it’s very easy to want more. Your options contracts can easily travel to $10,000 or even $15,000. But how much do you want to risk?
Pulling off the big wins. I am happy to “skim” $100 to $200 off for the week. That is a fantastic amount of money, considering I still have my principal ($20,000) intact.
However, if you trade strangles long enough, you can catch a big wave, usually around earnings calls.
Two weeks ago, on November 1st, 2023, Palatir shot up from $14.92 to $18.89 in one day. I was holding a call for the strike price of $15.50.
I made $2,000 that day. Then, last week, my wife made $1,100 on Rivian during their earnings call. I immediately put $2,000 in my money market fund and $1,100 in my wife’s.
All this is to say that you don’t need to be greedy. By simply setting your own rules in place and being conservative, you can still hit the jackpot every once in a while.
You must be happy to earn $100 eventually if you want to earn $2,000. If you always wait to hit $2,000, you WILL make mistakes.
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Understanding your Options Trading Debit Card. To truly appreciate your Options Trading Debit Card, you have to view your options account as an asset, just like owning a home or business.
I started with $20,000 in my options account. Its sole purpose is to earn me money in the safest manner possible.
The returns from trading options are absolutely crazy, but if I let it, they can also turn into major losses very quickly.
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I do not need the money from trading options. I have my military pension for my living needs. I also have dividends, rents, and royalties keeping me warm at night.
Therefore, I can trade options knowing I don’t need to get greedy. I simply want to make some money for the weekend. If I don’t make any money in options, I can use my Dividend Debit Card or, even better, just stay home.
Conclusion. Trading options has become one of my favorite things to do in my free time. The stock market can make you feel very silly from time to time.
However, if you find a method that works for you, you’ll have a much better time. “The Options Playbook” has over 40 ways to trade options.
I love trading long strangles because it makes sense to me. I can win in any direction the market decides to go. I can make much more money guessing in one direction, but I can equally lose just as big—I just choose to split the difference.
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It may take you a year to find what works for you. Start small. I started with $1,500 before transferring $20,000 into my account.
It is life-changing even if you earn $50 to $100 a week trading options. That is an extra $200 to $400 a month for spending 2-4 hours.
There is no better feeling than going to Walmart and spending $200 knowing that options are paying for your shopping cart.
My kids know my silver card is my Options Trading Debit Card, and they love seeing it. They know that my education created the money we spent using this card. Welcome to the Options Trading Debit Card. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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