Can I live on a 50K trading account by trading options?

To answer this question, I decided to simulate it to see if this is indeed possible. The main purpose is to share my experience to help people who are considering trading full-time and provide clarity on how hard (or easy) it would be to do so.

I understand everyone’s circumstance is different (some are married, some are single, etc) so I will provide as many details as possible to clarify. I must say this is important because when it comes to trading, psychology is one of the most important components and it can be influenced significantly based on the circumstance you are in.

The Setup

Married with two kids. My wife works full time.

Thanks to my wife, trading is not the only income source for the family, but it will need to sustain half of the expenses.

Trading with a roughly 50K margin account.

Starting from August 1st, 2022.

Living Expenses

Withdraw funds weekly to offset the living expense.

$500 or $1,500 bi-weekly = $4,000 monthly.

Options Trading Style

  1. Sell premium by utilizing the Wheel Strategy, Ratio Spreads, Naked Puts, etc.
  2. Trade VIX options to hedge as well as to generate income.
  3. Trade single stocks and Indices such as SPX, SPY, IWM, etc based on technical analysis.
monthly report

September 2022 – Trade With 50K Challenge

In case you missed it last month, this is the second monthly…
monthly report

August 2022 – Trade With 50K Challenge

I decided to start the monthly report again as a part of the…