Joey Tee’s $190k Options Portfolio: Diversification, Risk Control, and Technical Analysis

In the world of options trading, having a solid strategy is like bringing an umbrella to a rainstorm – it’s essential. Today, we’re taking a close look at Joey Tee, a stock options trader steering a $190k portfolio.

Get ready to explore how he mixes diversification, risk know-how, and technical analysis to traverse the options market.

options trading

Whether you’re a seasoned pro or just dipping your toes in, Joey’s insights are like a trusty compass in the often intricate world of options trading. Let’s dive in.

🚀 GETTING STARTED

1. Who are you? Where are you from? How did you first become interested in options trading, and what motivated you to start?

JT: I’m Joey Tee (that’s my alias lol) but I’m from Nashville, TN! I first got started with options trading back in 2020 when a friend of mine introduced me to it. I was buying calls and puts, had some big winners and some even bigger losers. I stayed stressed and glued to a screen and knew there had to be a better way for me to trade.

2. Can you share your early experiences and any challenges you faced when you were starting out as an options trader?

JT: I joined a bunch of discords and just waited for call outs and bought them. Then just hoped it went well. That was it. It was awful. I had zero strategy and every time I tried to learn one and it failed I hopped over to the next one, I was never able to figure it out so that’s when I discovered selling options.

📊 PREFERRED STRATEGIES

3. What are your preferred options trading strategies, and why do you find them effective?

JT: Today I like selling options, mainly because I know exactly how much money I can collect and what my risk is. I don’t have to watch a screen all day and I’m able to assess what I want to get in and out. It’s been pretty awesome to be honest.

4. What’s a lesser-known tip or hack in options selling that has made a significant difference? 

JT: Hmmm good question….probably the coolest one I’ve learned is the “odd lot strategy” where you buy extra shares of something, so if you sell covered calls and it gets in the money, you can then let your odd lot shares run and then sell those to buy back your call so it doesn’t get called away.

5. Do you trade earnings, if so what strategies do you use?

JT: I typically don’t trade earnings. Just isn’t worth the risk to me honestly.

🛡️ RISK MANAGEMENT

6. How do you approach risk management in your options trading? What steps do you take to protect your investments?

JT: I check my supply and demand zones before I go selling any options but mainly, I sell options on companies that I don’t mind owning. That makes a huge difference. Don’t just chase premium.

7. Are there some companies that you would avoid trading options on completely?

JT: Yes, pretty much any meme stock. I just don’t care about that stuff, premium is good but I’m trying to build this into a consistent 5 figure per month income, so I stick with my list of stocks.

8. Have you ever had a trade go against you in a big way, did you manage to repair it, what learnings did you take from it? 

JT: Yes, I bought 800 shares of $SQ when I was first starting to sell options and it tanked by about $25 so selling calls on that was rough and really had to manage it heavy.

I ended up breaking even on the trade but it wasn’t worth the risk and the headache, so now I don’t do any trade over 15% of my portfolio.

🔥 Quick Fire Qs 🔥

How long have you been trading options for? 3 years (1 year selling options)

What is your favourite option selling strategy? Selling cash secured puts and covered calls. 

What is your total account size dedicated for option trading? Currently about $190,000. 

I have brought a few rental properties this year and used the gains from trading options to make the down payment on them so the account has been up and down. 

What % return do you normally aim for each month? 2% minimum per month. 

How many stocks do you normally trade at any given time? 5-7 stocks. 

Do you prefer weekly or monthly options? It just depends, but I typically will do anywhere from 7-14-21-28 days on my contracts. 

What delta range do you normally trade? This also depends, if the stock has been beat up and my demand zones are close, I will go more aggressive. But if not, I will stick to something close to 1% of the collateral. 

What is your favourite online resource or tool for options trading?  TradingView is what I use a lot but also, X (aka Twitter) I’ve learned from a lot of people on there!

What Options Platform Do You Use? Interactive Brokers (IBKR)

💰 EXPECTED RETURNS

9. What kind of returns do you typically aim for with your options trading?

JT: I typically look for .5-1% per week in returns.

.5% is much more manageable for me and about where my risk tolerance is. But if I can get 1% per week and still be smart then I’ll do it.

📈 FUNDAMENTAL / TECHNICAL ANALYSIS

10. How important is fundamental and technical analysis in your decision-making process?

JT: It’s a big part. I like to check my supply and demand zones daily.

11.  If you use technical analysis, which indicators do you find the most beneficial?

JT: Supply and demand are my biggest indicators that I use.

💡 ADVICE FOR BEGINNERS

12. What advice would you give to someone who is just starting out in options trading? Are there any common pitfalls they should avoid?

JT: I’d honestly tell them to just start with spreads or options selling. You limit your income but you also know exactly what your risk is.

Don’t buy into the hype you see on discord or X about people making 5 figures every day from day trading.

13. Are there any specific strategies or concepts that you recommend new traders focus on mastering first?

JT: I think charting is a big one, just being able to see where stocks resistant points are, I’m a big fan of supply and demand.

Final Note: Are there any other things you would like to add that might help aspiring new options traders?

JT: Find a strategy that fits you. For me it’s selling options. It’s easier on me mentally and I can focus on my business and my family. Plus, I can see myself doing this every day for the rest of my life.

Where can people find you?

@Joeytee_ on twitter.

I don’t have any products to promote, but I do try to post a lot of my plays and thoughts on selling options on twitter.

READ ALSO: Options Trading Aspirations: Q&A with Erica Joan and Her $30,000 a Month Goal

Kevin S

Kevin S

Greetings, I'm Kevin! I am now a full time options trader and investor. I am thrilled to have the opportunity to share my knowledge and expertise with you. My objective is to assist you in navigating the complexities of option trading, regardless of whether you're a beginner or an experienced trader looking to enhance your skills. I'm excited to accompany you on your journey to mastering the art of option trading. Let's make this year an extraordinary one for you!

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Kevin S

Kevin S

Greetings, I'm Kevin! I am now a full time options trader and investor. I am thrilled to have the opportunity to share my knowledge and expertise with you. My objective is to assist you in navigating the complexities of option trading, regardless of whether you're a beginner or an experienced trader looking to enhance your skills. I'm excited to accompany you on your journey to mastering the art of option trading. Let's make this year an extraordinary one for you!

About DividendOnFire.com

Welcome to Dividend On Fire, we are a site dedicated to options trading! We specialize in helping investors generate passive weekly or monthly income through selling cash secured puts and covered calls.

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