Growing wealth may seem to be slow at times. It does take patience to be diligent when growing your wealth. The process can seem especially slow in the early stages. The reason is that when you have a smaller amount to invest, the growth will seem slower. The key is to stay the course as the account grows. Because over time you’ll see that the account grows faster as it builds up to a larger amount.

When we started this journey with $10,000 and had as our goal to generate $70 in premium for the first week, it may not seem like much. But if you can look ahead and see that when the account gets to $100,000, then you’ll be generating $700 in a week which will help to grow the account faster. It’s like a snowball, as the ball gets bigger, each time around grows the ball at a much faster amount even though the percentage rate is the same.

Roll Out or Roll Down and Further Out?

When we get to our weekly results you’ll see that we rolled one of our positions because the share price had dropped and the put was now in the money. There are different ways you can manage these positions:

• Let the put get assigned and sell calls on the shares
• Roll the put out in time at the same strike price for a credit
• Roll the put out in time to a lower strike price for a credit

My preference if possible is to roll the put out either to the same strike price or to a lower strike price as long as I can still get a credit for it. In most cases if you are rolling to a lower strike price, you’ll need to roll out further in time in order to still get a credit for the roll. More often than not, my preference is to roll to a lower strike. This works as long as the share price hasn’t fallen too far. Typically if I can roll over to a lower strike without having to roll out more than 4 weeks, I will do that rather than roll out just one week at the same strike price. My reasoning is that if the share price stays at the lower level for a longer period of time, it makes it easier to exit the position by gradually lowering the strike price until it expires out of the money.

Of course only time will tell which decision is best. If the share price were to recover within the next week it would be better to roll to the same strike price for a shorter duration. Since we don’t know what the future holds, all we can do is make a decision based on what we think the share price might do.

Week 8 Results

We started week 8 with the following positions:

When I looked at the market on Monday, the share price of SERV had fallen so my $12.50 put was in the money. My TSLL put was out of the money. I decided to wait on doing anything with both of these positions and see what happened as the week went on. I opened a new position on Monday by selling a put on MSTU with a strike price of $8 expiring on 6/27 (11 DTE). For this trade I was able to collect a premium of $52.

I checked things on Tuesday morning and the share price of SERV had dropped a little more. At that point I decided to roll my SERV put out to 7/18 and down to a strike price of $12. I was still able to collect a credit of $35 for making this roll.

When Friday came my TSLL put was still comfortably out of the money so I was able to let that one expire and finished the week holding the SERV and MSTU puts.

Summary

For the week I collected $86.88 in premiums after the fees which brought my net premiums since we started above my target for up to this point in the journey. Total net premium collected so far for the 8 weeks has been $577.12 and my target up to this point is $573.90. In reality most weeks I’ll probably end up bringing in a little above my target. This is good so that I’m ahead in case there is a week where things don’t go so well and I either have a loss or I’m not able to bring in as much as my target.

Here is a summary of our progress so far:

If you’re enjoying these posts or have questions, I’d love to hear from you in the comments below!

Read: How to Generate Consistent Returns Through Options Trading