I’ll keep this one short with just a brief recap and a quick update of how things are going.
Click here if you would like a simple primer on what I’m doing here. I’m selling Cash Secured Puts until I am assigned shares. Then I sell Covered Calls to sell the shares, collecting premium along the way. This is known as The Wheel Strategy.
You’re Probably Wondering How I Got Here
By the end of last year I wound up with a lot of shares of SOFI and HOOD through selling Cash Secured Puts. The problem now is that both of these stocks continued to drop, losing almost half their value for most of this year.
With their current stock prices being so far below the price I paid for them, the premium I was collecting back in their heyday has now completely vanished. These past few months, I’ve been forced to sell contracts for just a few bucks at a time as I wait for the stock prices to recover.
Thankfully, both stocks are finally starting to bounce back. HOOD has almost returned to my cost basis and it feels good to sell juicy contracts again. I opened two Covered Calls recently for a combined premium of over $670. A pale comparison against the $30 or so I was collecting just a month prior.
These mistakes that I made have had long-term consequences. I made these errors back in October and I’m still dealing with it and course-correcting to this very day. However, I do know that when I come out of the other side of this, I will be a better, more seasoned trader. I will be a Bishop in the Chapel of Extreme Experience.
I won’t sugarcoat it, it has been difficult. I haven’t been able to trade as much. In May, I went through a brief period of being too gun-shy to take on a trade or found myself closing winning trades early, fearful of losing more money. It’s challenging, at times, to keep chipping away, penny by penny, to crawl back out of the hole I dug. It’s humbling to do it publicly.
Ultimately, I was left with 2 choices. I could either decide the road to recovery was too long and difficult and throw in the towel and return to passive investing.
Or, if I thought about it for a minute, I could project myself into the future, even just a year down the road, and see myself being proud that I stuck it out. The tricky part is trusting the process. Or maybe it’s having the patience for it. Maybe it’s Maybelline, what the hell do I know?
Now I don’t want anyone getting the wrong idea that I lost all my money or anything, turning you away from trading. Like I mentioned in my video last month, I made around $25k in the market last year, I’ve just given a lot of that back now, is all. The reason for the loss is because I strayed from the plan that was working just fine.
Like a nice vacation, some time away can help to put things in perspective. When I return, I notice the urgency has been stripped away from life along with all the little things that I thought were important or absolutely crucial. I can see things with fresh eyes.
We just returned last night from spending most of the week in the mountains in Georgia. Had a nice, little cabin by the creek.
Monthly Roundup
Here are my lil baby trades for May. I made $92. Man, I’ll tell ya, I’m just now seeing this number for the first time, just like you are. Not great lol. Not great.
Welp, that’s all for now. I’m excited that things are picking back up in my portfolio. Remember, kids, don’t buy options. Sell options.
I promise more exciting times are coming. Once I’m able to get out of these two stocks, I will free up almost $30k of buying power in just one of my accounts. This will allow me to wreak havoc once again. Man is a creature with an apocalyptic view point who responds best to violent change.
Until then,
Chris
If you’d like to give trading on Robinhood a try, you can click my referral link HERE and we’ll both get some free stock.
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This is not financial advice. Unless you’re into losing money.
Moses of the South 
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