Hello, this is Phil Ash, president of Investing Daily. I am for the most part a buy-and-hold investor, using stock recommendations from some of our services such as Personal Finance and High-Yield investing, among others, but I do like to play around with options.

In this video, I’m going to show you how I trade some of Jim Fink’s Options for Income recommendations. You’ll get a front row seat to my TastyTrade account to see how easy these trades are to make. You can also read a transcript of my comments below this video (and also find out more about how this strategy works.)

Today is not the typical options expiration date, which is the third Friday of each month, but I do have several options expiring today, June 2nd.

Let’s take a look at a few of those options in my Tastytrade account. Sorting them by days till expiration, I have two options spreads expiring today from Jim Fink’s Options for Income service. These are mostly put credit spreads, which I won’t go into detail about in this video. I will provide links in the comments section to other videos that explain put credit spreads and how to engage in what Jim Fink calls “the greatest investment strategy on planet Earth.”

I traded Jim Fink’s Options for Income portfolio successfully a few years ago, earning an annual return of 25-30%. However, I got busy with other things and stopped, but I recently reactivated my account.

Initially, I seeded it with $5,000 at the end of February 2023 and gradually added more money. It’s now at $20,000, but I’ll probably need to put in around $25,000, which is what we recommend to be able to trade one contract on each of Jim’s recommendations. You can trade with just $5,000 if you want, but you won’t be able to execute all of his trade recommendations. Of course, you can put in more money if you want to trade more than one contract per trade.

Now, let’s look at the two trades I have expiring today. I sold a $225 put option and simultaneously bought a $220 put option to create a $5 put credit spread on one contract. Each contract is worth 100 shares of stock, so I put $500 at risk. However, when I bought this Visa trade, I collected a credit of $450 and bought insurance in the form of a put option for $300. That means I collected a net of $150, which I get to keep regardless of the trade’s outcome. Since it’s a $5 spread, I put $500 at risk but collected $150, resulting in $350 actually at risk. This trade, if successful, will yield a 43% return in just a few months.

As for the other trade expiring today, TTWO, it is also a $5 spread, and I just need the stock price to finish above $119, which it has been significantly higher than for weeks. On this particular trade, I collected a $167 credit, so $500 minus $167 equals $333 that I actually had at risk. This trade will yield a 50% return in a matter of months.

That’s what’s happening in the world of Jim Fink’s Options for Income. I’ll provide links in the comments section to videos if you’d like to learn more about trading put credit spreads. Feel free to drop me a comment if you have any questions. I hope this was helpful. Have a great day.

P.S. To learn more about more about how put credit spreads and Jim Fink’s Options for Income service works, check out these short (and free) training videos. Jim Fink calls put credit spreads “the greatest investment strategy on planet earth”… and I do not disagree.

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_{This article originally appeared on Investing Daily.}