Tag: options trading
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…
Selling Cash-Secured Puts vs. Treasury Bills
How much money can you earn in a 30-day cycle? I guess it depends on how you choose to earn your income. You can do it the safe way or add a little spice. Ultimately, it depends on your objectives. If you want to juice your returns to retire earlier, you’ll have to take on…
Cash-Secured Puts vs. Dividends: The Best Passive Strategy
The best way to retire early is through dividend investing—hands down. But that doesn’t mean that dividend investing is the best way to generate income. The goal is to create a Happy Cash Flow Retirement where new money comes in every day. Dividend investing can create lots of cash flow, but you will surrender much…
Selling Covered Calls vs. High Yield Savings: The Best Way to Invest $1,100
I love comparing various financial products against one another, but this one will take the cake. How do you compare the safest option to the riskiest one? So, let’s simplify the comparison: How would I safely grow a small nest egg of $1,100? The easy answer is to put the money into a high-yield savings…
The Biggest Book on Passive Income Ever 4!
How do some people get to live the life of their dreams? They get to travel where they want and buy whatever they desire. Their lives seem impossible to obtain, especially if you are in the nine-to-five daily grind. But I am here to tell you that you can remove yourself from the rat race…
Options Trading for the Everyday Person
Money doesn’t grow on trees; however, we can plant trees that grow money. We can use multiple income streams to create the lifestyle we envision for our family and friends. But how do we get to the point where our money works for us? Society seems to be withdrawing more money from our accounts than…
Dividend Investing with a Splash of Options Trading
Who doesn’t love getting a paycheck? Receiving our weekly, bi-weekly, or monthly paychecks is perhaps one of the greatest feelings you can have while in the workforce. Do you know what’s even better? Getting a paycheck when you didn’t work for it is much more exhilarating. That’s the magic of income investing; it allows you…
5 Takeaways from “The Options Wheel Strategy”
“The Options Wheel Strategy” by Freeman Publications covers the cycle of using cash-secured puts and covered calls together. I have personally used this strategy to some extent. The book details the options wheel, selecting the right stocks, and positioning your wheel alongside your more extensive portfolio. After using the wheel for six months, I am…
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…
Thanksgiving: A Time for Grace and Passive Income
What a wonderful time to be alive and enjoying the Thanksgiving holiday season. What are you thankful for this year? I am blessed to have retired from the Marine Corps this year—24 years later. After many years of being away, I finally came home for good. I am also thankful to have learned the ways…
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…
Retirement Planning for the Average Person 6
It finally happened; my wife and I retired. I am 42, and she is 39, and life couldn’t be better. We both started with below-average resources, but we still arrived at this momentous occasion. So, what’s the secret sauce to retiring when you want, having a great income, and living your dream life? The secret…
Treasury Bonds vs. Options Trading: Graduate to the Next Phase of Investing
We rarely get to compare two completely opposite things—usually, there is no point. However, let’s make an exception in this case because both investment vehicles can help us reach our financial goals. Buying treasury bonds and trading options are about as far apart on the risk totem pole as possible. Treasuries give investors a risk-free…
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…
5 Takeaways from “Mean Reversion Trading”
“Mean Reversion Trading” by Nishant Pant is a deep dive into the world of options trading. I am new to the options trading scene, and this book provided a lot of information I needed. Trading options can be quite lucrative; however, you must balance fear and greed daily. You can use a hefty amount of…
Financial Freedom Road Trip #2: Options Trading
This is my sixth time driving between San Diego, California, and Pensacola, Florida. And this will be my last time doing it as a US Marine. Arriving in Tucson, Arizona, is always a welcome feeling. Again, I love the desert more than any other environment, and Tucson has that old-school Western vibe. Welcome back to…
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…
