Trading Goals

Trading Leg

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.

Income Leg

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.

Retirement Leg

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.

Investment Leg

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.

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7 thoughts on “Trading Goals

    • Good question, J. The goal of my covered call trades is to net approx 5% a month on average. Given my current financial situation (no bills), I determined 5% of 160k would be more than sufficient income (also assumes I’m taxed at 32%).

    • Hi, Al!

      I follow the trends of quite a few stocks. Those trends that tend to last more than a couple wks I use for covered call trades. A few examples of some I use are X, GG, CAKE, DECK, COH, CAT and COST.

      Thanks for reading!

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