Trader Stories | 15 min read

Interview: One Year as Options Trader

A trader reports on his experiences in the first year: successes, mistakes and important lessons for beginners.

MH

Markus Hoffmann

32 Jahre, Software-Entwickler aus München

Trading Experience: 1 year | Main Strategy: Covered Calls & Credit Spreads

"The first year was an emotional rollercoaster. I made mistakes, learned a lot, and am now more profitable than ever. Here are my key insights."

The Beginning: How It All Started

BeInOptions: Markus, how did you get into options trading?

Markus: I had a stock portfolio of about €50,000 – mainly tech stocks. One day I saw a YouTube video about covered calls. The idea of generating additional income from my existing stocks immediately fascinated me. I opened an account at Libertex and sold my first covered call on Apple stock. That was in January 2024.

First Trades - The Numbers

Month 1-3

+€2,100

Only Covered Calls

Month 4-6

-€1,800

Experiments with Naked Puts

Month 7-12

+€4,500

Disciplined Spreads

The 3 Biggest Mistakes

1

Too Much Leverage, Too Fast

Markus: "After my initial success, I got overconfident. I thought: If I make €200 with 10 contracts, I'll make €2,000 with 100 contracts. In April I sold naked puts on Tesla with way too much exposure. Tesla fell 15% – I lost almost €2,000 in one day."

Lesson:

Never risk more than 2-3% of capital per trade. Position sizing is more important than the strategy itself.

2

Emotional Trading

Markus: "In July I had 5 losing trades in a row. I was frustrated and wanted to recover the losses immediately. I doubled my positions and traded without a plan. This led to even more losses."

Lesson:

After 2 losing trades: Take a 1-day break. Keep a trading journal and document emotions.

3

No Exit Strategy

Markus: "I knew exactly when to open a position, but not when to close it. I often held losing positions too long hoping for a recovery."

Lesson:

Before each trade: Set stop-loss AND define profit target. At 50% profit I now close most positions.

The Biggest Successes

Consistent Monthly Income

Markus: "From August I developed a system: At the start of each month I sell covered calls on my tech stocks with 30-45 days expiration. Goal: 1-2% monthly premium income. The last 5 months were all profitable – averaging +€750 per month."

August

+€680

September

+€820

Oktober

+€750

November

+€690

Best Trade: IV Crush After Earnings

Markus: "In October I sold an iron condor before Microsoft earnings. IV was at 65% – extremely high. After earnings IV dropped to 35%. I was able to close the position with 80% profit after just 2 days. Profit: €1,200."

What I learned:

High IV = selling opportunity. I now always watch IV Rank and only trade when it's above 50%.

Advice for Beginners

BeInOptions: What would you advise someone who wants to start with options?

1. Start with Covered Calls

If you already own stocks, start with covered calls. Risk is limited and you learn the mechanics.

2. Paper Trading is Important

I wish I had spent 2-3 months paper trading. It would have saved me many expensive mistakes.

3. Understand the Greeks

Delta, Theta, Vega – these metrics are essential. I don't trade anymore without checking them.

4. Journaling is a Must

Document every trade: Why, when, how much. Analyze your performance every month.

5. Choose the Right Broker

I use Libertex because of low fees and good tools. With frequent trading, fees make a big difference.

My Current Setup (December 2024)

Main Strategy

  • 70% Covered Calls on Tech Stocks
  • 20% Credit Spreads at High IV
  • 10% Iron Condors Before Earnings

Monthly Goal

1.5%

of portfolio value

That's ~€750 with my current portfolio. Realistic and achievable without excessive risk.

Most Important Rules

  • 1.Never more than 2% risk per trade
  • 2.Only trade at IV Rank > 50%
  • 3.Close position at 50% profit
  • 4.Document every trade in journal
  • 5.After 2 losses: 1 day break

Start Your Options Trading Journey!

Learn from Markus' experience and start with Libertex – professional tools, low fees!

Start Free Now

Closing Words

BeInOptions: Markus, thank you for this honest interview. What are your plans for 2025?

Markus: I'm sticking with my proven strategy. My goal is to consistently earn 1.5-2% per month. That would be 18-24% annually – more than enough. I'll continue learning, refining my system, and maybe invest a small portion in new strategies like calendar spreads. But slowly and disciplined – the most important lesson of the first year.

Risk Warning: This interview is for educational purposes only and does not constitute investment advice. Markus' experiences are individual and do not guarantee future results. Options trading carries significant risks and is not suitable for all investors.

BeInOptions Team