Options Income Generation

Managed by Objective Financial Planning LLC

85.8% Last 30 days -31.3% Last 90 days -23.8% Last 365 days -0.26 Sharpe Ratio -64.5% Max Drawdown

Options Income Generation

Managed by Objective Financial Planning LLC

85.8% Last 30 days -31.3% Last 90 days -23.8% Last 365 days -0.26 Sharpe Ratio -64.47 Max Drawdown
Risk score
Strategy Options
AUM fee 1.5%
• Investment minimum: $17,000
• Options trading permissions
• Margin account
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My view is that strong investment returns can help overcome shortfalls in other areas, such as poor planning. This is why my focus has always been on providing the highest return for a given amount of risk. With markets in a guessing game as to the real value of assets due to the global monetary experiment being played, buying and selling stocks or indexes is not a place where I feel I can add value. This uncertainty is why I feel the right option strategies provide much more potential for positive returns due to a much greater room for error. It is easier to hit the dartboard than the bullseye.


I have used this strategy with clients for over 5 years as a supplement to the rest of their traditional portfolio (mix of stocks, bonds, cash). Each year, the strategy has evolved in terms of the size of the spread, how far to open away from the current price, and the amount of profit as well as the optimal point to close a position.


My option strategy focus is on a major index (versus an individual stock) as I want to avoid major price fluctuations. The strategy utilized here is a lower risk, income generator where the credit spread (simultaneous purchase and sale of either a put or call) is far out of the money. Typically there will be anywhere from one to three open spreads at a time as market trends can impact when I choose to open a spread. I also do not want one position to dominate a portfolio (i.e. avoid putting all your eggs in one basket) to help lower overall risk.

Allocation discipline

The current underlying security being utilized is the SPY (SPDR S&P 500) ETF as it is very liquid in the option world with most bid/ask spreads of 1 cent. There will typically be a cash cushion in place as a means of risk control in case positions need to be closed unexpectedly. Total spreads open at one time will never exceed three and will never make up more than 90% of the Net Liquidation Value. Expiration dates will also never exceed 30 days. On average, there is one spread opened every week with the positions expiring the vast majority of the time (>90% of the time).

Sell discipline

Open spreads are closed only if the risk hits a predetermined level of potential loss. This depends on time to expiration, dollar value of potential loss, and VIX (volatility index).


The only time exceptions come into play are if a known major event is upcoming such as a Federal Reserve meeting announcement.

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on April 23, 2018.

Daily returns
U.S. Aggregate Bond ETF
S&P 500 ETF
Manager (net of fees )
Last 30 days 85.8% 3.3% -0.4%
Last 90 days -31.3% -5.5% -1.6%
Last 365 Days -23.8% 15.8% -0.7%
Since inception (Annualized) -3.4% 18.4% 0.9%
2018 (YTD) -30.1% 0.3% -2.4%
2017 14.7% 21.7% 3.6%
Risk metrics (last 365 days)
U.S. Aggregate Bond ETF
S&P 500 ETF
Manager (net of fees )
Volatility 99.1% 12.1% 2.5%
Sharpe Ratio -0.26 1.15 -1.00
Sortino Ratio -0.24 1.18 -1.69
Maximum Drawdown -64.5% -10.1% -2.9%
Value-at-risk (95%, 1 week) -23.0% -2.8% -0.6%
Additional metrics (last 365 days)
vs. U.S. Aggregate Bond ETF
vs. S&P 500 ETF
Information Ratio -0.4% -0.2%
Alpha -40.57 20.94
Beta 4.21 -5.32
R-Squared 0.3% 0.0%
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About Objective Financial Planning LLC

Jason S. John,began his career as a financial adviser in 1999 with American Express (now Ameriprise) Financial Advisors. After 6 years, he left and founded Objective Financial Planning (now Objective Financial Planning LLC). That year, he also completed the CFP Certification Professional Education Program from the College for Financial Planning and became a CFP® certificant. Since then Jason has pursued many different investment angles to optimize risk and reward, leading him to the use of his favorite strategy, utilized in this Covestor portfolio. Jason received a BA (finance and accounting) from The Ohio State University in 1991.

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily adjusted close prices and include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on IB Asset Management on July 18, 2016. Returns history prior to launch is derived from account position valuation and cash flow data at Interactive Brokers. IB Asset Management has not reviewed this performance data but has received manager certification that it adheres to the current strategy.
  10. This portfolio contains options. Options trading involves a high degree of risk, is highly speculative, and is not suitable for all investors. You should only select a portfolio with options trading if you are comfortable with the level of risk involved in trading options.
  11. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  12. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.