Cashflow Report: Paper Income during April 2011

One step closer to my goal…will May bring me good fortune?

What happened in April?
Actually, April was a pretty quiet month from my perspective. I placed my orders, sat back, and watched things unfold. Although I haven’t stated it anywhere, this is one of my goals as well. Less activity means less costs related to commissions and fees, less stress, and more time for me to do other things (which is the point of passive/paper income streams).

As far as the ETF’s are concerned:
DRN blasted off the second half of the month, climbing from $62 to $80 per share! And without too much volatility…just steady increases.

There are some DRN traders out there who made some good money this month. Unfortunately for me, lower volatility means lower premiums, but not enough to impact cashflow potential TOO much.

EDC dropped about 10% in price over the first half of the month, and then proceeded to gain it back over the second half (establishing a new intermediate uptrend as an added bonus). EDC premiums increased slightly in April as well (~6%)

If I had to guess, there is a good chance I’ll be in all cash when May expiration rolls around.

What I learned in April
By decreasing the amount of time I spent following DRN and EDC, I was better able to resist the temptation to buy back my DRN options and chase capital gains.

DRN will come back down, and those paper gains would have vanished (yes, I jadedly speak from experience).

I still need to find a sweet spot for monitoring price action without getting caught up in it.

Cashflow Breakdown:

DRN-Direxion Daily Real Estate Bull 3X (ETF)

Premiums = $2250 (same as March!)
Dividends = $0.00
Commissions/Fees = ($8.31)

EDC-Direxion Daily Emerging Markets Bull 3X (ETF)

Premiums = $1260.00
Commissions/Fees = ($13.26)

Net Cashflow – April 2011 = $3488.43

SUCCESS PART II! I exceeded my cashflow goal again. This time by ~$490 WITHOUT the help of dividends! “When” I achieve my 3 month goal next month,I plan to make a few tweaks to my goal for 2011. Stay tuned!

Paper Income from Covered Calls

Investing for Cashflow - Performance - 2011-04

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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

3 Responses to Cashflow Report: Paper Income during April 2011

  1. utopianhorizon says:

    Hi Troy,

    Awsome blog…only thing is that you don’t really share your strategy. What program are you using? What are your money management rules? Any books that you recommend? etc. I have so many questions to ask you, but I’m not sure a blog is the appropriate venue. Any way I can email you?



    • T. Knight says:

      Thanks! I appreciate the feedback! I’ve been going back and forth on how to share my strategies and rules…I’m thinking a new page will be added in the near future. Check my gravatar – it should have contact info.

  2. Pingback: April 2011 Contest « Income Report Contest

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