In this account, I will trade options with a limit of 10 trades per month. I will not use more than 50% of my account balance at any one time. My goal is to build this account to $20k. I will then move $10k to a new account to establish my Income Leg. Once my Income Leg is established, 80% of each month’s trading gain will be moved to the Income Leg at the end of each month.
In this account, I will make one trade per month using my covered call technique to make more conservative trades. My goal for this account is to build the balance to $160k and make 5% per month on my trades. Once this account has reached $160k, the contributions from the Trading Leg account will then be moved to the Investment Leg instead. The 5% monthly gain will be transferred out of the account as income and any amount over the 5% gain will be moved to my Investment Leg account at the end of each month, in turn bringing the balance for this account back to $160k.
In my Retirement Leg, I will use the same covered call technique used in my Income Leg account. I will also trade some naked options in this account from time to time. My goal for this account is to continue to grow the balance over time until I reach distribution age.
My Investment Leg account will be used for my long-term investments. This is where I will purchase stock that I do not intend to ever sell. My goal for this account is to continue to grow it over time building wealth that will stay in our family.