Passive income through option writing: Part 7 – Careful when shorting long-dated options!

May 3, 2021 Welcome back to a new installment of the options series! In the discussion following the previous post (Part 6), a reader suggested the following: In recent history, the index has never lost more than 50% over the span of one year. Then why not simply write (=short) a put option, about one … Continue reading Passive income through option writing: Part 7 – Careful when shorting long-dated options!

Passive income through option writing: Part 6 – A 2018-2021 backtest with different contract sizes: Guest Post by “Spintwig”

All parts of this series: Trading derivatives on the path to Financial Independence and Early Retirement Passive income through option writing: Part 1 Passive income through option writing: Part 2 Passive income through option writing: Part 3 Passive income through option writing: Part 4 – Surviving a Bear Market! Passive income through option writing: Part … Continue reading Passive income through option writing: Part 6 – A 2018-2021 backtest with different contract sizes: Guest Post by “Spintwig”

Passive income through option writing: Part 4 – Surviving a Bear Market!

June 10, 2020 Welcome back to another post dealing with an investing strategy that’s central to our own retirement strategy here in the ERN household. Just a bit of background, about 35% of our financial net worth is currently invested in this strategy. But it accounts for more than 50% of our taxable assets, so … Continue reading Passive income through option writing: Part 4 – Surviving a Bear Market!

Passive income through option writing: Part 5 – A 2018-2020 backtest: Guest Post by “Spintwig” (plus a quick update on last week’s volatility)

All parts of this series: Trading derivatives on the path to Financial Independence and Early Retirement Passive income through option writing: Part 1 Passive income through option writing: Part 2 Passive income through option writing: Part 3 Passive income through option writing: Part 4 – Surviving a Bear Market! Passive income through option writing: Part … Continue reading Passive income through option writing: Part 5 – A 2018-2020 backtest: Guest Post by “Spintwig” (plus a quick update on last week’s volatility)

Another Option Strategy Failure: Why it’s “Nickels in Front of a Steamroller” and not “Benjamins in Front of a Baby Stroller!”

My little blog here may be mostly known for the Safe Withdrawal Rate Series. But I’m surprised how many people share my other passion: options trading. Both here on the blog and at FinCon last weekend lots of fans of the blog asked me when I’m going to write something about derivatives again. Wait no … Continue reading Another Option Strategy Failure: Why it’s “Nickels in Front of a Steamroller” and not “Benjamins in Front of a Baby Stroller!”

Passive income through option writing: Part 3

All parts of this series: Trading derivatives on the path to Financial Independence and Early Retirement Passive income through option writing: Part 1 Passive income through option writing: Part 2 Passive income through option writing: Part 3 Passive income through option writing: Part 4 – Surviving a Bear Market! Passive income through option writing: Part … Continue reading Passive income through option writing: Part 3

Trading like an Escape Artist: How I made money in October trading S&P Futures Options with 2x leverage

October was a scary month for stocks: the worst monthly S&P 500 return in seven years! And November is off to a volatile start as well! We haven’t even seen a real correction yet but apparently, the drop was bad enough for me to got inquiries from friends and former colleagues asking how I’m doing … Continue reading Trading like an Escape Artist: How I made money in October trading S&P Futures Options with 2x leverage

My thoughts on the GameStop volatility

Update (February 8, 2021): Well, there you have it, GameStop is back closer to reality at around $60 as of today. It lost 80+% from the peak value. Who would have guessed that?! January 30, 2021 Wow, what a week! I was reminded again why I prefer to be an index investor (for the most … Continue reading My thoughts on the GameStop volatility

Is a short-interest ratio above 100% really that scary? The GameStop Saga Part 2

February 22, 2021 In late January, I wrote about my thoughts on the crazy wild ride in GameStop and some other meme stocks. Now might be a good time to do an update to talk about some of the other things I learned.  For example, how a short-interest ratio of more than 100% is surely … Continue reading Is a short-interest ratio above 100% really that scary? The GameStop Saga Part 2

Three Equity Investing Styles that did OK in 2020

April 22, 2020 Recently, I wrote a post endorsing the simple Bogleheads approach: invest in passive index ETFs. Everything else is just mumbo-jumbo, window-dressing and people not understanding the (mostly) efficient market nature of the stock market. In other words… Simple (indexing) beats complicated active investing Well, after unloading on some of the fancy complicated … Continue reading Three Equity Investing Styles that did OK in 2020