Tag: options
Using Leverage with Options Trading: Wise, Prize, or Snake Eyes?
You don’t need to use leverage (also known as margin) to trade options, but what would be the point of trading options? Leverage is a double-edged sword: mighty in good times, disastrous in bad times. So, how do you decide when to use leverage and how much to use? The key to using leverage is…
Stocks, Bonds, & Options in Your 70s: Taking Care of Everyone Else
Let me be 100% honest; we should have money pouring out of our eyeballs in our 70s. By leveraging the power of compounding early in life, we ensure our 70s are plentiful. For example, let’s say my $340,000 portfolio compounded at 10% annually while I added $1,000 per month. In 27 years (I’m 43), I…
Trading Long Strangles vs. Money Market Funds
Where we put our emergency fund money says much about who we are. Some people use high-yield savings, and others use treasury bills. Investors are usually more comfortable using money market funds to house their emergency funds. These funds allow us to trade into the action when the stock market gets spicy. The only thing…
Covered Calls vs. Dividends: The Best Passive Strategy
If you want to retire in America, you must build a stream of passive income. There are many ways to generate income in your sleep; however, understanding these streams is vital to building wealth. Two ways to generate a return on your invested money are selling covered calls and investing in dividend stocks. Both options…
The Magic of Trading Long Strangles: The Best Passive Options Trading Technique
Have you ever dreamed of creating a money machine? Well, the secret to getting rich is finding a way to generate out-sized returns—and continually repeating the process. I stumbled upon trading long strangles through my options trading journey. The returns have been magical. I am still waiting for the downside to show its face. In…
Winning the Lottery with Options Trading: How to Control Your Fear and Greed
One of the biggest tests of self-control is the ability to trade options on the stock market calmly. It can be an emotional roller coaster because the stock market can be irrational, especially if you need it to go in a particular direction. I won the lottery three times this month while trading options, once…
The Options Trading Debit Card: Create the Best Weekends of Your Life
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.…
Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners
So you want to trade options, huh? Welcome to this magical and dangerous world that most try to avoid at all stops. The key to trading options successfully is having a clear income goal, defined expectations, and a rock-solid plan to avoid being greedy. Greed is the number one way to lose lots of money…
Trading Long Strangles for Passive Income
Trading options on the stock market is not for the faint of heart. However, you have come to the right place if you want big returns (for taking big risks). Trading options can be a very emotional experience because the stock market can make you feel like an idiot sometimes. Therefore, finding the options strategy…
How to Make $100 a Month in Passive Income
Passive income is very elusive in that it does not start very passively. You must contribute a certain amount of work to build a passive income stream. However, once you get the hang of it, you can create as many income streams as you can maintain. Passive income is a mindset more than an amount…
Dividend Investing vs. Options Trading: Let’s Start with $10,000
The world of high finance is a fantastic place to build wealth and live your dreams. However, without financial education, your dreams can become nightmares. If you can save $10,000, you can consider yourself an Elite Saver of America. But now it’s time to make your money generate more money. Dividend investing and options trading…
Stock Market vs. Bond Market vs. Options Market
Investing in paper markets can be intimidating if you don’t have a guide or mentor. I would guess that the overwhelming majority of people will never invest directly in financial markets (also called risk markets). It is a shame because you can grow your wealth much quicker with paper assets than by working your 9-5…
Selling Cash-Secured Puts for Passive Income
After spending some time on the stock market, you’ll understand the epp and flow of the world’s greatest wealth creator. You will undoubtedly be a buy-and-hold investor if you are a dividend investor. Receiving dividends is my favorite moment of my day, outside of seeing my family. Luckily, we can extract even more passive income…
Selling Covered Calls for Passive Income
Options, options, options—we all love having options. Therefore, we should all learn how to trade options on the stock market. Learning to trade options is part of our bigger plan to diversify our passive income. First, a quick disclaimer. This article will not give you an exact science or step-by-step guide to selling covered calls.…
