This year also saw a seismic growth in new online trading. So this past year, we saw companies scramble to do things differently, open up new revenue streams and become more productive. Following the 2020 lockdowns, the collapse of our supply chain, and the shuttering of public businesses, Americans had to do what Americans do best – innovate. Some Statistics # of Vertical Credit Spreads sold in 2021Īverage Spread duration (days to expiration)Įven with COVID still making headlines, scarry spending bills in Congress, a sorry partisan divide across the country, this year ended pretty good. 59 reinvested dividends = 43.975124 shares of SPY. Reinvesting all dividends throughout the year, my end-of-year share count would be 43.385124 +. Instead of selling Vertical Credit Spreads, if I started the year buying $16,000 worth of the S&P 500 Index ETF SPY, and held on to it through the year, could I have done better?īuying $16,000 worth of SPY, I would start the year with 43.385124 shares at $368.79/share (SPY price on 01/02/21). Strategy 2 (Hypothetical) – ETF/SPY Investment My 2021’s total return from selling Vertical Credit Spreads = $24,343.58 ($16,000 starting cash balance + $8,463.01 premiums collected + $1.61 interest received – $121.04 fees paid to Ameritrade). 2021 Goal 3 – Success Strategy 1 – Selling Vertical Spreads This is a gross cash profit of $4,743.58 (29.6%) over the starting balance. On Dec 31, 2021, my trading account cash balance was $20,743.58 (even with the $300/month pay withdrawals). 2021 Goal 2 – SuccessĢ021 began with an initial investment of $16,000 cash in my trading account. The $300/month compensation was based on 22.5% of the initial investment ($16,000 *. I transferred $300 out of my trading account each month for a total of $3,600 for the year. How Did I Do On My Goals? 2021 Goal 1 – SuccessĮvery month, I collected more premium from selling Vertical Spreads than what was required for a paycheck. By the end of 2021, be able to say that I did better selling Vertical Credit Spreads than I would have done if I simple invested the same amount in an Index ETF as a buy-and-hold investment.By the end of 2021, have more money in my Trading Account than when I started.Collect enough in monthly premiums to allow me to widthdraw a $300 pay check on the last Friday of each month.This week’s short journal entry is my 2021 Performance Review for selling Vertical Bull Put Credit Spreads for income. 2021 is over and it is now time to fess up.
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