How I use options to supplement my retirement

The Underlying V

Diversification, there is none to be found here. I don’t have the time or energy to follow multiple stocks. So my strategy is to pick a stock that I’m comfortable owning if it gets “put” to me until it has time to recover to a profitable level. I’m looking for a stock that has a long smooth history.. Here is a 10 year monthly chart of the underlying that I am using:

That’s right Visa. This strategy has returned my primary account more than 30% year to date. My goal is .05% a day and I’m usually able to surpass that. My strike prices are well off the current price, so I will have time to sidestep the next major downturn when it happens.

Disclaimer: Single stock diversification is no diversification and contains significant risk, don’t try this at home without the advise of a professional financial advisor.

Wells Fargo and Interactive Brokers

You would think in this day and age that eft transfers would be instant. Sigh, not so much so. I tried to connect to WF from IB’s site, but all I got was the spinning hamster wheel after going through all the phone tag verifications. I guess I’m glad they take security seriously, but sometimes you just want to transfer some funds and start making trades.

I ended up going into the WF site and doing a bill pay to IB, that’s going to take 3-6 days, and then IB will have to wait for the deposit to clear, another 7 days from what I remember with my last arch deposit. I would actually like to see the market pull back over the next two weeks to get some better entry points when the funds are available in the brokerage account. In the meantime this give me a little time to layout my strategy for put options and my overall strategy of trading.

Disclaimer, not a licensed financial advisor.

Forced retirement!

Well, I guess in fact it wasn’t really forced, not at the moment, but the writing was on the walls. Surviving cancer in 08 and multiple other setbacks I decided it was time to retire in 2018 when they needed to drill into my skull and put a shunt from my brain to my stomach to keep from going blind. I retired from a state agency after 21 years and have a pension that pays the bills. My retirement is much earlier that I had planned and therefore the 401k and pensions didn’t have the chance to grow to full maturity. In the past year, I’ve experimented with many aspects of the financial market. Some successful and others not so much.

What I have found that works for me is selling naked put options. I’m currently up 30% in my account for the year. I’m going to be starting a new account in a few days (I’m actually managing for someone else who’s seen my results) and going to document the progress. I’m doing so to create a record for my heirs so if they decide to keep this up they can do so. I invite all to follow along and comment. However if you decide to invest your hard earned money, please seek the advice of a professional. I’ve warned you that I’m a brain damaged civil servant with no financial credentials