The Options Income Engine in Action: September Results
Location-Independent Income: $988 cash flow on $16,571 capital in 11 days.
I’m back in Australia for a few months and spring is well and truly in season.
My most solicited theme by far has been income generation via the options market and I’ve been impressed by the number of people who’ve joined the waiting list.
There’s a critical mass now in terms of interest and so this weekend I gave the go ahead to my developer to advance the project by starting work on the website.
Here’s a snippet of the feedback so far in terms of goals and working capital:
There’s also a decent cohort that is starting out with <$25K working capital so I decided to start there and show how that might look, then document the process as I scale it up.
I’ll keep you updated with regards to progress, but I want the mastermind to be exclusive and hosted off sub-stack and under a domain I own and control.
My goal is to document what I call borderless cashflow: income I can generate anywhere in the world, without employees, clients, or products.
👉 Join the Waitlist Now and make money flow wherever you are 🌍
For the more visual crew - I break it down in this video:
🌾 September’s Harvest
The idea is to start small with a relatable-amount of capital for the newer cohort and scale up both the size and frequency of the trades.
Here’s the breakdown in USD:
Total Cash Profit: $988.76 (includes commissions)
Capital at Risk: $16,571.62
Return on Capital: 5.92%
Ave Days Held: 11
Normalised Annualised Return: 192%
Profit/Day: $89
I know this might not seem impressive on the surface, but remember - I only traded 11 days with a small amount and took the rest of the month off.
Scaling the System
If the same approach were repeated consistently over a 30-day trading cycle, the projected profit would be roughly $2,696 USD recycling that same $16.5 K working capital base.
That’s an impressive use of capital which I could compound without further capital requirements by trading the whole month. The drawback here is the time zone difference which is a killer for managing trade orders.
Scaling to $100 K of working capital at similar monthly returns implies a gross monthly cashflow of ~$16 K per month. A I emphasise in the video however, this is conceptual math, not a promise nor an expectation. In reality, to trade professionally you wouldn’t allocate the entire capital stack into live trades as you may need to adjust or ‘roll’ your positions when they go against you (and they will from time to time). Additionally, other variables such as taxes and market movements will obviously affect the final tally.
My focus today isn’t on the percentage return but rather the concept of establishing a one man insurance company as one pillar of my income streams and designing life around it.
A reader can simply take the concept and run with it.
Context - Cost Of Living
To see what that means in practice, I compared normalised trading income to average monthly costs of living worldwide (single person) according to LLM search:
Before we get carried away with visions of living large, we need our basic needs met. Using the above (very rough guide obviously) it appears that I could survive in most places if I were ever reduced to my laptop, a brokerage account and less than $20k working capital.
*Note - I spent 3 days in San Francisco and have precisely zero desire to return, so no need to outpace the cost of living there!
Case Study 1 – OpenDoor Technologies
OpenDoor was volatile this month which is a dream for options sellers.
I sold the $6.50 put for $1.23 per share across 5 contracts.
Cash received: $615
Collateral: $6,150
Closed at: $0.33 per share
Net profit: ~10.8 % ROI in 10 days
Simple trade, solid yield, limited exposure.
*Side note:I have a monster position in 2028 options on OPEN 0.00%↑ which I’m too ashamed to share.
Case Study 2 – iBit 16.5 Δ Credit Spread
Sold a $55/50 put credit spread at 16.5 delta.
Premium collected: $510 net (15 lots)
Bought back: $165
Profit: $345 over 10 days
Probability of profit was ~83.5 %. Defined risk, capped loss and low capital requirements.
Building Borderless Cashflow
At the risk of repeating myself, I’m not promising results.
I’m documenting my journey what I’ve learned about using the options market to fund freedom and mobility.
The mission is to build a location-independent income engine that can outpace the ever-increasing cost of living in order to achieve self-actualisation, living life truly on my terms.
That’s The Maverick Life.
👉 Join the waitlist for The Maverick Life Mastermind and learn the framework behind these case studies.
In 2 months I’ll be back in South America for hiking season and will likely be trading weekly or even daily options.
Until next time - take care.
Benji.