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Entry for 04/10/08

 
 

 

 

$899,953.82 Cash Income Over the Past 3 Months

Over the past three months, I collected $899,953.82 in cash income in my trading accounts from selling option premium.  My net income was less than $899,953.82 depending on the strategy employed. Selling option premium results in cash being credited to your brokerage account. I used my Option Income, Option Spread and Market Neutral Strategies to generate this income. All of these strategies are limited risk strategies and I can’t lose more than the cost of the option or spread. Copies of my brokerage confirmations showing the options sold to generate this cash income follow.

The stock market has been very volatile and unpredictable over the past year. Despite the volatility the S&P 500 Index is virtually unchanged over the past year. Selling option premium to create a spread is a great way to profit in unpredictable markets. A long call option profits if its underlying stock increases in price and a short call option profits if its underlying stock decreases in price providing an opportunity to profit in up, sideways or down markets.

 

 

 

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