Tag: options trading
Stocks, Bonds, & Options in Your 40s: Determine Your Reality
Welcome to your 40s, when you start to see the light at the end of the financial tunnel. Now is a great time for you to make some big bets while also playing it safe. Does that sound strange? Again, welcome to your 40s. The essential part of getting your money right in your 40s…
The Options Wheel vs. Certificates of Deposit: Create Your Own Yield
Why would I compare a safe account at a credit union to a “risky” account on the options market? Because we all need to earn yield while our money sits still. Although certificates of deposit and the options wheel offer two different spectrums on the risk scale, they both serve the same goal: to earn…
Become a Digital Nomad with Options Trading: Living the Laptop Life with Options
Do we all dream of traveling the world while making money from our laptops? I know that was my dream for a long time. I am over the long road trips after touring extensively for the US government for 24 years. However, the idea of becoming a digital nomad, even a US-based one, is still…
Stocks, Bonds, & Options in Your 30s: Prepare for Financial Compression
I am going to start calling the 30s “the compression years” because you spend the entire decade being compressed financially. In your 30s, you are trying to climb the corporate ladder, get married, have children, and buy a house while living the American dream. It’s no wonder that most people have upside-down bank accounts after…
Selling Covered Calls + Social Security: The Ultimate Retirement Combo?
Going into retirement, the worst thing you can do is put yourself on a fixed budget. Conversely, establishing a budget is the best way to prepare for retirement. What’s the difference? When you live on a fixed income, someone tells you how much you have to spend. When you create a budget, you tell yourself…
Recipe for Wealth: Trading Long Strangles and Living Below Your Means
There are only two ways to become wealthy: reducing expenses and increasing income. Most people fail to get rich because they don’t succeed at both. If you can lower the stakes on one side of your life, you can increase the risk on the other. For example, you can fund your options portfolio if you…
Stocks, Bonds, & Options in Your 20s: Mitigate Risk while Building Wealth
People in their 20s have trouble with their finances because they have two objectives: building wealth and funding their future. The financial media always tells the younger generation about compound interest and how vital it is to save and invest early in life. The stark reality is that people in their 20s must contend with…
Selling Covered Calls for Passive Income 2: Why Take the Risk?
What’s not to love about earning passive income? You invest your money, go to the beach, and your accounts grow with magical passive income. Right? That’s the fantasy, at least. In reality, creating a passive income stream requires hard work and specific knowledge. Today, I want to focus on one way to earn passive income:…
The Options Wheel vs. An Online Business: The Best Way to Make Money From Home
Everyone wants to make money from home. Imagine making $2,000 per month from the safety and security of your cozy house. What’s not to love about the idea of generating revenue without having to get dressed? However, making any type of income from your home is extremely challenging. Since everyone wants to be the next…
Trading Long Strangles vs. Rental Properties: The Best Use of Leverage to Build Wealth
Owning a home has become increasingly difficult. Most people view homeownership as the simplest way to build wealth, but those days may be over. Further, owning multiple properties and becoming landlords allowed people to grow their net worth, increase their passive income, and build generational wealth. However, purchasing a primary residence is challenging enough; how…
Selling Cash-Secured Puts vs. Book Royalties: The Best Passive Income Strategy for the Average Person
It takes money to make money; this is usually the case. However, there are some things in life that we can create for free. The goal of financial freedom is to collect as many income-producing assets as possible. Most of these assets require capital to obtain. Some income-producing assets are treasury bonds, dividend-paying stocks, rental…
Selling Covered Calls vs. Renting Rooms: The Best Passive Income Strategy for the Average Person
Many people dream of becoming high-flying options traders who can double their money in a month. Sadly, they are more likely to lose their money than double it. Trading options is not for the faint of heart. It requires nerves of still and the ability to detach your emotions from what’s happening. I love trading…
Options Trading in Your 70s: Avoiding the Stock Market At All Costs
We should all be winding down in our 70s. We want to enjoy our days and love our nights, but we don’t want a lot of stress from the financial markets. If you have all of your finances squared away in your 60s, then your 70s and 80s will just be a continuation of those…
5 Takeaways from “Options Trading: How to Turn Every Friday into Payday Using Weekly Options”
“Options Trading: How to Turn Every Friday into Payday Using Weekly Options” by T.R. Lawrence is a book I wanted to read to solve one of my trading problems. The most challenging part of selling cash-secured puts is determining how low to set your strike price. The last thing you want is to end up…
Options Trading in Your 60s: Retirement Planning Made Easy
You’ve prepared your entire life for this moment. You are retiring from the workforce, drawing your pension, and signing up for social security. This is the point at which most people stop their retirement planning. But I love the concept of living a Happy Cash Flow Retirement. My Happy Cash Flow Retirement system consists of…
Options Trading in Your 50s: Generating Major Income
Welcome to your 50s. For many people, the 50s are their highest earning years. They will have climbed the corporate ladder, raised their kids, bought a house, and saved for retirement. However, the worst thing we can do before retirement is become complacent. We can’t let our money stay stagnant. Our 50s are a fantastic…
Options Trading in Your 40s: Taking on More Risk
Our 40s can be a fantastic time. We could be married, our kids could be older and more self-sufficient, we may have climbed the corporate ladder, or we may be in a two-income household. Most importantly, we may have some time to ourselves. We can use this time to build a decent-seized options trading portfolio.…
Options Trading in Your 30s: Passive Income During Family Season
For most of us, our 30s are a time of personal growth and financial turmoil. So many things are going on at once that it can be overwhelming. In our 30s, we are getting married, having kids, building our careers, and buying homes. This season is already stressful enough; the last thing we want to…
Options Trading in Your 20s: Build Wealth at 30% Annual Returns
Most of us don’t have a lot of money in our 20s. In fact, we spend our 20s trying to have fun on a budget. If you can devote just a tiny portion of your 20s to income generation, you can exploit the power of compounding at an early age. But what is the best…
The Options Wheel vs. Dividends
We need to keep our money working for us at all times—in the safest way possible. Sometimes, this means using a high-yield savings account, investing in dividend stocks, or even trading options. I recently discussed selling covered calls and cash-secured puts versus buying dividend-paying stocks. The conclusion was that trading options can be much riskier…
