Spoken to a few people recently, they had sparked my interest in option trading again. One of them is the COO of Tactical Trading Academy, his passion has always been in option trading. Next is a retired CEO of a MNC. He told me that he wants to grow wealth even without the salary of a CEO. He said option trading could be his income builder.
For my option trading, I will be using my skill as a stock investor. This allows me to pick stocks that are fundamentally sound. Studies have shown that most options expire worthless. So in my option trading I will be a seller of options. I choose to sell put options. This means that I am betting that share price will not fall below my strike price at the expiration date.
My strategy will take into worst case scenario. Worst case scenario for an option seller is to get assigned. Even if I get assigned and needs to buy the stocks, I have the confidence that my stocks will appreciate in value.
Here are my option trades today:
I am very interested to know how will my trades turn out on the expiration dates. If my sold options are not assigned, I will be earning a good return of around 20% in just 4 to 5 months’ time.