Passive Income? Not Really, Here’s the Truth

Let’s be honest, I wouldn’t call what I have “passive income.”

It still requires active decisions and management.

Since the start of the year, I’ve been properly tracking my returns. One big move I made was selling off all my REITs, keeping only OCBC, and redirecting most of my capital into my IBKR account.

Right now, my portfolio is very concentrated. I’m mainly holding NVIDIA and SEA Ltd. The problem?

 They don’t generate much in terms of passive income.

So where is my “income” coming from?

Options.

Specifically, I’ve been selling cash-secured put options on SEA Ltd. My strategy is simple, I sell puts at strike prices that are unlikely to be hit, but levels I’m comfortable owning the stock if it does.

Because of the capital freed up from selling my REITs, I’m able to sell about 4 to 6 contracts per week. This generates roughly $300 to $500 USD weekly.

That alone is enough to cover my expenses.

But instead of withdrawing it, I let everything compound within the account. When opportunities come, I use it to accumulate more NVIDIA or SEA Ltd.

At the same time, I’ve set a rule for myself: I won’t be adding fresh funds into the US market anymore. The capital from my REIT sales is my final allocation for now.

Instead, I’m slowly building up a war chest, waiting, preparing, and staying patient for the next major market opportunity.

Because when that moment comes, I want to be ready.

Hence, I would say that this is not really a passive income since i am actively doing something to it almost every Monday and Friday. 

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