Embarking on a new challenge is always exciting, especially when it comes to something as dynamic and rewarding as options trading. After years of honing my skills with options, I’ve decided to take on a $100K options trading challenge, aiming to grow my portfolio to $100,000 by the year 2029. The strategy? Selling options—both puts and calls. While there’s no strict time frame, five years seems like a reasonable goal for the challenge.
The Starting Point: $7,000 in Capital
We’re starting with a little over $7,000 in our Interactive Brokers brokerage account. This isn’t a massive sum, but it’s a good start for someone aiming to grow their wealth through options trading. The plan revolves around the steady and strategic selling of options, which has been a reliable income-generating strategy for many seasoned traders. However, we may deposit more funds or withdraw some along the way, depending on various factors like market conditions or personal needs.
The Strategy: Selling Puts and Calls
The core of this challenge will involve selling puts and calls. This strategy allows us to generate premium income, which can grow steadily over time. Here’s a basic outline of how the strategy works:
- Selling Puts: This involves selling put options on stocks we’d be willing to own. If the stock falls below the strike price, we might end up purchasing it at a discount, which isn’t a bad deal for quality companies. In the meantime, we collect premiums from selling the put options.
- Selling Covered Calls: On the flip side, we’ll also be selling covered calls on stocks we already own or acquire. This helps us generate additional income from stocks that might otherwise sit idle in our portfolio.
- Managing Risk: Risk management will be key throughout the challenge. We’ll start small, limiting position sizes and ensuring we don’t overexpose the portfolio. As the account grows, the flexibility and diversity of trades can increase.
No Set Time Frame, But 2029 Is the Target
While I’m looking to achieve $100K in about five years, I’m keeping this challenge flexible. Markets can be volatile, and life can bring its surprises, so there’s no hard deadline. However, 2029 seems like a reasonable target for turning this challenge into a success.
Tracking Progress and Adjustments Along the Way
I’ll be tracking progress through regular updates, sharing the details of the trades, strategies, and outcomes. While the goal is to grow the account through options selling, there may be times when funds are added or withdrawn. This flexibility ensures the challenge remains aligned with personal and market circumstances.
Final Thoughts
Starting with a modest $7,000 and growing it to $100,000 through options trading is ambitious, but not impossible. The road ahead will require discipline, sound strategies, and consistent risk management. I’m excited to share this journey and hope it inspires others interested in options trading to explore the potential of this income-generating strategy.
Stay tuned for updates as we progress toward that $100K milestone! Most of the trades will be shared on our Facebook page: 100K options trading challenge