My goal is to double the account value of my Roth IRA this year. I am not working for the foreseeable future, so I should have plenty of time to make this goal a reality.
I’ve primarily been wheeling AAPL or TSLA to earn income in the account as I didn’t fund it with my typical $6,500 (via a traditional to Roth backdoor rollover) this year for tax reasons. Unfortunately, I still have more than a handful of truly terrible stocks in this portfolio that I will very slowly look to dispose of (there is no tax loss harvesting in a Roth IRA). Two key elements which weren’t utilized enough previously are to set stop losses and to take profit.
Set stop losses on the holdings that don’t have them.
My largest holding is cash at ~36%, used to sell puts. With the recent run up of AI related stocks, I’m going to put about $7,200 into shares and calls (stocks TBD) as the initial step in doubling the value of this account.
I expect to sell the two pharma stocks I have in this account during the next quarter (awaiting the catalysts for them) and buy to close the put I have on SNOW over the summer. Profit from the pharma stocks and the CSP will be used to offset the loss on the sale of one of the dogs in this portfolio.
June was a good month. I’m making 4.75% (annually) on the cash used for CSPs, bought 100 shares of HPE, 4 more of MSFT, and was assigned 1 contract of SOFI (so I have 100 shares in this account as well). Sold some of my biopharma (all profitable except for PDSB). Realized a loss of one of the dogs in this account (around $1200).
Stop losses are set, was recently assigned AAPL, waiting for an up day to sell a covered call on it - the NASDAQ rebalancing is making the big 7 challenging right now.
Thanks, I was curious because my thoughts are that to achieve our goal we need to massively outperform the index in a bull market. By the same token from experience the last 2-3 years, when we hit a bear market my drawdown is so much more severe. Anyway, I’m trying to amp up my risks and tangentially add a few more percentage (hopefully ) using options which I just started 2.5 months ago.
So far it’s going well, but I also noticed you can easily underperform when the market moves very fast.
Another month of the grind. Sold covered calls on AAPL, LCID, PLTR, SOFI and rolled my CCs on RIOT and PLTR. Earned 0.696 shares of HPE (dividend). Hopeful that the last couple of days from the US downgrade don’t affect August too much. Waiting for an up day to sell more CCs and I’ve been closing out my CCs at 50% when earnings are near.
August was a terrible, horrible, no good, very bad month - largely due to a downturn in the market, rather than anything I did. Sold covered calls on PLTR, SOFI, AAPL, CRSR, RIOT, LCID, and HPE. Sold a put on XFOR. I’m hoping September will be better.
So I didn’t make my goal. August through October were brutal and the majority of this portfolio in AAPL (and it’s fall and stagnation during that timeframe) made selling covered calls difficult. Here’s how I ended the year in my Roth:
I’m sitting now with this port at 27% cash, looking for something to buy in the New Year. I also have 3 SAVE calls in here, so hoping for a pop in the next 15 days or so.
) using options which I just started 2.5 months ago.
