December was a below average month for options trading.
I only made $570 because some of my trades were quite risky and they didn’t turn out well.
But altogether I’ve made $51,000 from net option premiums in 2022. That’s a lot more than I made in the previous year when I started trading options.
One of the biggest lessons I’ve learned in December is to take smaller risks and sell lower delta options.
Making 2 or 3 thousand dollars per month consistently is better than scattered returns like what happened with my trading during the summer months of 2022.
One new strategy I am trying now is to buy options when I see an impulsive price action on the 5 minute daily chart.
The idea is I can make more money this way than selling out of the money options. But only if I’m diligent about risk management.
It will require monitoring my trades throughout the day. When you buy an option time decay works against you so it’s better to get in and out quickly.
I have heard that other traders have success with this strategy so I’ll see if I can make it work. 🙂
Moving forward in this new year my goal is to earn about $3,000 per month consistently from option premiums. We’ll see how it goes.
Random Useless Fact:
According to the LA Times the price for a carton of eggs in California more than doubled in 2022.