Last Week’s Income Report:
May 17, 2021
May has been a bumpy month for investors. Last week, the sharpest sell-off in stocks since October was followed by a swift rebound.
Yet, despite the big intraday swings, the S&P 500 closed Friday down just 0.2% for the month.
There are a number of likely reasons why recent market sell-offs have been relatively muted. These include the Federal Reserve’s easy-money policies, passive exchange-traded funds buying the dip, and the highest level of share buybacks in more than two decades.
Still, the market could continue to struggle as inflation concerns weigh on investors’ minds and they shy away from high-growth stocks and pandemic favorites. It’s quite possible we see continued day-to-day volatility without much real movement.
Of course, a range-bound market with a high level of volatility is just fine by us option sellers.
April was our most profitable month so far this year at Options Income Blueprint. We closed 13 successful positions in a row, earning $1,398 in income.
By comparison, May has gotten off to a slow start. In the first half of the month, we closed four winners. Traders who sold just one contract of each could have earned $250 in income.
While the pace of closeouts has not been as torrid as in previous months, the rates of return have been excellent.
When selling puts or calls, I typically aim for a return of at least 0.5% a week, or 26% annualized. Each of these trades has easily exceeded that goal.
In trading, you’ll have some periods that are slower than others. But if you stick with your strategy and stick to your goals, your odds of success will be much higher. So, that’s exactly what we’ll be doing at Options Income Blueprint.