Adding SOLO to mum's retirement fund
Back in March 2020, I decided to launch the so-called mom’s retirement fund - by investing in a quality dividend stock, back then I was focusing on Wells Fargo Bank stock.
Launching Semi-Passive Income Portfolio for my Mom
Unfortunately, the pandemic broke out and I had to postpone my plans with investing in the name for my mom. Instead, I was providing and still provide little financial assistance to her every month.
We started small with some EUR 50/month about 3 years ago while I keep gradually increasing this amount once in 4 months, until we have reached already EUR 165/mo in June 2021.
Nothing much, I know. You cannot buy much for this money, but as a little financial assistance, this is IMHO a nice little bonus.
Now, I decided - how about if I will invest the same amount of money every month in the stock market, sell some covered calls and build something BIG?
And I did - decided to go with SOLO stock. Converting EUR 165 to USD I got $196, from whom I bought 45 shares with SOLO and sold one 5 DTE expiry Call option with a strike price set bit above my buy price.
In case our strike price of $4.5 will get challenged and as I don’t have 100 shares yet to deliver, I will try to roll up and forward our strike price for credit.
I’m looking to sell weekly options with SOLO stock to generate additional income.
Once in a month, I will invest an additional EUR 165 to buy more SOLO stock and from the options income at the end of the month, I will buy WFC share (s). Once we will have at least 100 WFC shares I will add something more.
Should grow big. Let’s hope SOLO stock will go up over time also, and not drop to a penny stock.