As of May 22, 2026, our options fueled dividend stock portfolio has increased by quite impressive +3.01%, reaching $12,740.
On a year-to-date basis, the portfolio is now up 22.48%, outperforming both the S&P 500 (+9.26%) and NVDA (+15.39%).
NVDA Earnings Reaction and Portfolio Impact
What a week. NVDA released earnings, and the stock price cooled off a bit afterward. Since we’re running both covered calls and credit spreads, I actually feel fairly relaxed seeing NVDA pull back. Our covered calls are capped at the $125 strike (June 2027 expiry), so downside volatility in the short term is not necessarily negative for the strategy.
Once again, this dynamic provided an additional boost to the portfolio.
Weekly Options Expiry and New Credit Spread Trades
As all of our weekly options expired worthless today, I opened a few new credit spreads for next week’s expiry on NVDA and NFLX.
NFLX is a new addition to the arsenal, at least for now. The idea is to introduce another strong runner into the portfolio and diversify premium generation beyond NVDA alone.
When placing trades, I focus primarily on high-probability setups that are likely to expire worthless, using delta as my main guide. With NVDA - now a $5.7T company - liquidity is exceptional, making it possible to structure trades with roughly a 93% probability of expiring worthless.
With other stocks, particularly NFLX, it becomes more challenging. Deltas tend to move closer to -0.12, reducing the probability of expiring worthless to around 86–88%. Those are still solid odds, but positions can become more difficult to adjust if challenged.
This week I also considered adding AAPL, PLTR, or another highly liquid stock with a strong premium-to-risk profile. However, at the current portfolio size, there’s limited appeal in selling puts with notional exposure several times larger than the portfolio itself - especially on top of the existing NVDA exposure.
For now, I’m sticking with NVDA and NFLX.
Current Options Positions
- NVDA May 29, 2026 205/195 Bull Put Credit Spread
- NFLX May 29, 2026 85/80 Bull Put Credit Spread
- 2x BMY Jun 18, 2026 50/46 Bull Put Credit Spread
- DBK FRA Jun 19, 2026 24/20 Bull Put Credit Spread
- ARCC Sep 18, 2026 16 Cash-Secured Put
- NVDA Jun 17, 2027 $125 Covered Call
Dividend Portfolio Growth Through Options Premium
From options premium generated this week I bought partial shares of other companies to gradually grow our long-term dividend stock portfolio. This week, in particular, I added 0.1 shares of MCD, 0.1 NFLX, 0.1 NVDA, and 0.5 PFE - all financed entirely from the options premium generated during the week.
Not all of these are dividend-paying stocks, of course, but the ones that are increased our projected annual dividend income by $1.31. That may not sound like much, but if we could maintain a similar pace throughout the year, it would translate into roughly an additional $70 annually. Still modest, but definitely nice to have.
Last but not least, I noticed that Deutsche Bank is about to make its annual dividend payment. Since we currently hold 26 DB shares, our total projected dividend income has now climbed to $90 per year.
Nice - truly passive income. And honestly, pushing that number above $100 in the coming weeks certainly wouldn’t hurt.
Weekly Premium Income and Margin Debt Reduction
This week options made $66 premium income. It seems pushing above $100 weekly will be challenging at current safety levels, but I dont want to blow up account with more aggressive trades, as I'm still working to reduce the margin debt our portfolio is having.
At the current margin balance of approximately -$3,135, maintaining a sustained $66 weekly pace would theoretically eliminate the debt within roughly 47 weeks. Given the current portfolio structure and risk exposure, I’m expecting to eliminate this debt in 2027.
Key Positions to Monitor Next Week
The key positions to monitor next week will be:
- NVDA 205/195 Bull Put Spread
- NFLX 85/80 Bull Put Spread
If either position comes under pressure, the plan remains unchanged: roll forward whenever possible, ideally for a net credit, while continuing to prioritize long-term portfolio stability over short-term perfection.
Risk Management Approach
The current strategy remains focused on:
- Generating recurring premium income through defined-risk options strategies
- Using high-probability setups based on delta metrics
- Reinvesting options income into long-term equity holdings
- Gradually increasing dividend income
- Managing margin exposure conservatively
- Prioritizing liquidity and adjustability in all trades
While the portfolio continues to grow, preserving capital and maintaining manageable risk exposure remain the primary objectives.
Disclaimer
This article reflects personal portfolio activity and market observations for informational and educational purposes only. It does not constitute financial advice, investment advice, tax advice, or a recommendation to buy or sell any securities, derivatives, or financial instruments.
Options trading involves significant risk and may not be suitable for all investors. Strategies involving credit spreads, covered calls, margin, and cash-secured puts can result in losses, including substantial capital loss.
Past performance does not guarantee future results. Any probability estimates referenced in this article are theoretical and should not be interpreted as guarantees of profit or protection against loss.
Always conduct your own research and consult with a licensed financial advisor before making investment decisions.
