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How I created US$4,855 "dividend" income in less than 30 minutes

DividendGuy67
Publish date: Fri, 24 Jan 2025, 12:57 AM

Introduction

These days, there are a lot of youtubes on the Internet showing you how to create a $10,000 monthly salary or some high numbers!  My title is one of them.  Actually, they are not quite like that easy.  Here's what I did exactly.

Brief explanation of my Option Selling today

Today's selling is mainly plain vanilla versions, although there's different sub versions.

The main sub-version is Covered Calls and within this, there's sub-sub versions - e.g. either a full Covered Call, or a partial Covered Call (which I call Ratio Covered Call).  Another sub-sub version is what I called a "Diagonal Roll" i.e. as they approach expiry tomorrow, I would just roll them to the next month at a slightly different strike for additional credit, and depending, it can be the price I want to sell (or not).  

A second version is Cash Secured Puts and for today, they are all just "Diagonal Rolls" sub-versions.

The third version is plain vanilla Bull Put Spreads - I opened 2 new ones for TSLA, as existing one is expiring,so, it is reason enough to sell.   You can always sell TSLA options nearly every month using Bull Put Spreads.   TSLA is very volatile near and after earnings, so, I use the Credit Spreads structures first, and even when it eventually crashes down very hard (do this long enough, it will happen), I can't have more paper losses than just a few hundred bucks (as it is controlled by lot sizes), and when it stabilizes, I will then do a "trade repair" to get out of the bad situation and so far, I always end up winning.   If price doesn't crash, then, I collect a few hundred bucks and keep them as profit.  The key is not to be greedy, then, you will always win in the end.

Summary

It took me around 45 minutes or so I guess to do all these trades, and took me longer to key it in, and write it up. LOL!  

Collected Cash in my account US$4,855 which is a decent amount this month.  Can't complain.

What's interesting is that out of the $4.9k, around $3.6k (or roughly 3 quarters) are Bitcoin related income.  Typically in a month, it allows me to get something like $5-6k, which is good enough to add another 100 IBIT shares or so ... what you see here are just today, I do "time-diversification" too besides "strikes diversification".  It looks complicated, but it's routine BAU for me without much thinking.

As an aside, I call myself the DividendGuy not because of owning dividend stocks in Bursa, but actually selling Options like this for nearly a decade.   The premiums received from selling option is like a "synthetic dividend", except instead of waiting for the Company to pay you a dividend (which they decide how much), I take charge by getting the Options market to pay me a "synthetic dividend income", by capitalizing on the Options high Implied Volatility and Theta decay (trying to keep delta losses to a minimum).  Volatility generates income.  A flat stock does not.  Hence, I like Bitcoin, and Bitcoin related.  Also TSLA and some of the other instruments shown above.  There are also other strategies above which are not purely Income generation but combo.


Disclaimer:  Not financial advice.  Just a random guy on the Internet.  As usual, you are fully responsible for your trading and investing decisions.

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