Investing Should Be Boring

There are many different ways you can trade the financial markets. From swing trading to fundamental analysis. From day trading to dividend stocks. Then you have the whole arena of options trading and futures trading. The one disadvantage I see with day trading is that you can trade all day and still lose money. So you could lose both time and money if you are not skilled. My method is to select stocks with good fundamentals and that also predominantly pay dividends and also increase the pay-outs over time. Then when the opportunity arises, we can sell some covered calls on oud urderlyings but always being aware of ex dividend and earnings dates.

This method is boring but we don’t lose money. Furthermore we take profits on our options at 50% as this gives us the opportunity to sell more options over time. It is working. Our portfolio brings in income every month and I can sleep at night. See February’s results below for “boring” income

1. Capital Gains

2. Options

3.  Dividends

On Wednesday last , we used some strength in these underlyings to sell more covered calls

wedImmediately we put in GTC orders to take profits on these positions at roughly 50%

gtcOnly 2 scenarios can play out here. If calls are bought back, we will wait for another rally so we can sell covered calls once more. If calls are exercised on expiration date, underlyings will be “called away”. This means that full option premium was collected . We wait for earnings or a pull back to re-enter into these underlyings if it makes sense at the time

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