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August 2014 results

Another month passed and it is time to write a report how my chase for financial freedom progressed.

I am so desperate to get there as quickly as possible that I study other traders, and keep my account fully invested. I envy some of my fellow investors such as Jason Dividend Mantra and his ability to save around 50% of his income to build his Freedom Fund. And a few months ago Jason even quit his job and went semi-retired, working his passion as a freelance writer, blogging and continues saving to his freedom fund.

Or recently, FerdiS from DivGro blog who started investing in 2013 and his portfolio already includes 34 top rated dividend stocks.

Many times when reading blogs like those above I ask myself, how do you do it guys?
 

Although I tried hard to find resources to save more than I currently do, which is roughly 22% saving rate, I wasn’t able to save more than what I currently do.

This was the reason for searching other methods to make more money to invest. This was the reason for learning hard and adopting options trading. It helped me a lot to generate an incredible income so far.

 
Options
 

With a lot smaller money available I generate more cash than my dividend paying stocks.

 
I trade on margin, so all my options are actually generated on other people’s money and my hard cash is located in dividend stocks.

But that doesn’t mean that I will no longer invest in dividend stocks. No, dividend stocks are still a core of my portfolio and options is to generate cash, which at the end of each year will be reallocated into dividend paying stocks.

My idea is, that options should generate enough to help me with living expenses (thus semi-retire or retire) and invest into dividend paying stocks. I still consider dividends a passive income. Income, which will flow into your account without working. As I get older, I may not be able to trade options and I will have to rely on dividends (you know when I grow 99 years old or so).

As of today, my desperation to create a trading company is so huge, that I basically have only one goal – retire in 5 years.

All steps, investments, trading, and risk management will do anything to get me to that goal.

This month, was another good month. Although my income actually dropped, my net-liq (net liquidation value) of the account recovered from the previous month.

The reason for such value volatility was my trading with Taser Int. (TASR), which was my biggest adventure this month. In one of my next posts (maybe when the trade ends), I will write about this trade and describe it in details.

Almost the whole month I was working hard with TASR to adjust the trade. At first, when the stock was falling hard, I was lowering my puts down, later when the stock was skyrocketing on a hype influenced by Ferguson, MO events, I was rolling up my calls. Now, my short strangle is wide range and the stock should be safe.

Let’s see my monthly results of my trading and dividend income:

 

January 2014 premiums: $156.10 (1.55%)
February 2014 premiums: $139.26 (1.38%)
March 2014 premiums: $746.62 (7.41%)
April 2014 premiums: $421.63 (4.19%)
May 2014 premiums: $803.32 (7.98%)
June 2014 premiums: $230.21 (2.29%)
July 2014 premiums: $4,602.44 (45.69%)
August 2014 premiums: -$172.58 (-1.71%)
   
January 2014 dividends: $25.87 (0.26%)
February 2014 dividends: $167.02 (1.66%)
March 2014 dividends: $68.77 (0.68%)
April 2014 dividends: $25.91 (0.26%)
May 2014 dividends: $168.51 (1.67%)
June 2014 dividends: $68.81 (0.68%)
July 2014 dividends: $25.96 (0.26%)
August 2014 dividends: $150.49 (1.49%)
   
Total 2014 income: $8,283.15 (82.24%)
2014 unrealized premiums: $4,857.62 (48.23%)
   
Account Equity: $28,927.29 (00.00%)
Account Net-Liq: $21,053.54 (13.80%)
December 2013 balance: $10,072.25

You can see my dividend and options income on My Trades & Income page.

What about you? How was your August 2014 and the entire year so far? Post a link to your website or write down your results to encourage other investors!

Have a great September 2014!!
 
 





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