SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

How I Invest My Own Money

“Don’t tell me what you think, tell me what you own.” I’ve written articles and posts on this website about a wide variety of ideas and strategies, so in this article I’ll share my thought process of how I’ve put it all together for my own personal situation. My ability, willingness, and need to take risk is likely different than yours, possibly a lot different, so this should not be considered investment advice or recommendations.

Before I dive in, I should generally describe the principles that make up my investment philosophy. I believe markets are not perfectly efficient, but they are highly efficient, where the path to higher expected returns is paved with higher volatility. I believe in factor diversification, so some of this volatility also means occasionally large tracking variance relative to conventional benchmarks such as the S&P 500.  There are many ways I diversify my portfolio including asset classes (stocks, bonds, cash, alternative strategies), geography (US, Developed International, Emerging Markets), and risk factors (market, size, value, momentum, profitability, volatility, term) just to name a few. Overall, it's important to have an investment philosophy that you can stick with through tough times.


Asset allocation:

“Stocks”: 88%

  • Equity mutual funds & ETF's

“Bonds”: 3%

  • Bond mutual funds & ETF's

“Cash equivalents”: 9%

  • Checking & savings accounts
  • Money Market mutual funds
  • Cash value of life insurance


  • Equity & treasury index option short puts, calls, and strangles

This does not include other items that make up my personal net worth such as the present value of a future pension I’ll have from a prior employer, my current equity stake in Lorintine Capital, my home & associated equity, and other valuable personal property and belongings.

When I refer to stocks, I’m lumping together certain strategies like passively managed buy/hold/rebalance allocations to equity mutual funds & ETF's.  I don’t own individual stocks as I build my portfolio around academic research which generally advises against buying individual stocks.  With bonds, I keep it simple with funds that are short to intermediate term and are high quality.


Cash equivalents are pretty straightforward, consisting of checking and savings, although I primarily use my brokerage account like a checking account because the cash balance is automatically swept into a money market mutual fund. I have a debit card and checkbook for this account, ATM fees are rebated, and there are no minimums or transaction count requirements. This part of my portfolio simply acts as my source of short-term liquidity and emergency funds, along with my high yield savings account. If I have any large upcoming lump sum expenditures planned within the next few years, I’ll increase my cash position. I also consider my cash value in a whole life insurance policy as a source of liquidity because I fund the contract annually up to the IRS “MEC” limit. Margin loans against my taxable equities are also a source of quick cash if needed.

The alternatives in my portfolio are all constructed as portfolio "overlay" strategies using short options. I prefer to sell put and call options as my sole alternative strategy as it's a well documented "alternative risk premium" that should persist in the future. I keep it simple with this strategy, passively selling out of the money XSP puts and calls as well as TLT puts that are approximately one month from expiration.

The historical volatility for my asset allocation over the last 30 years is about 13% due to the benefits of diversification. The Sharpe Ratio would have been around 0.7 according to backtesting I’ve done, although I have lower forward-looking expectations and would be very happy with 0.6 over the long term. With no yield on T-bills today, this implies an expected return of approximately 8%.

Jesse Blom is a licensed investment advisor and Vice President of Lorintine Capital, LP. He provides investment advice to clients all over the United States and around the world. Jesse has been in financial services since 2008 and is a CERTIFIED FINANCIAL PLANNER™ professional. Working with a CFP® professional represents the highest standard of financial planning advice. Jesse has a Bachelor of Science in Finance from Oral Roberts University. Jesse manages the Steady Momentum service, and regularly incorporates options into client portfolios.

What Is SteadyOptions?

Full Trading Plan

Complete Portfolio Approach

Diversified Options Strategies

Exclusive Community Forum

Steady And Consistent Gains

High Quality Education

Risk Management, Portfolio Size

Performance based on real fills

Try It Free

Non-directional Options Strategies

10-15 trade Ideas Per Month

Targets 5-7% Monthly Net Return

Visit our Education Center

Recent Articles


  • Q&A with Mental Game Coach Jared Tendler

    QUESTION: Thank you for taking the time to participate in a Q & A session with Steady Option. Let’s start with an introduction and a little bit of background on who you are and how you got here.

    By Jared Tendler,

  • Using TLT Options to Increase Expected Returns of a Buy & Hold Portfolio

    TLT is the iShares 20+ Year Treasury Bond ETF that seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years. Even though US Treasuries typically act as a diversifying asset class to mainstream equities, many investors with long time horizons may not be interested in holding TLT in their portfolio because it would lower expected returns.

    By Jesse,

  • Tax Efficient Trading Part II: Capital Gains Deferral

    In part I I illustrated how the preferential tax treatment of 1256 contracts could improve after tax returns of a PutWrite strategy over a long period of time. In this article, I’ll continue the illustration by switching from a PutWrite to an ETF BuyWrite (covered calls) strategy while holding pre-tax expected returns constant at 8%.

    By Jesse,

  • Tax Efficient Trading Part I: The 1256 Contracts

    Cash settled index options like SPX, XSP, RUT and a few others receive special federal tax treatment where 60% of the gains are reported as a Long Term Capital Gain (LTCG) even if the contract was held for less than a year.

    By Jesse,

  • SPY Short Puts vs. Put Spreads

    In this article I’ll be using the ORATS Wheel backtesting tool to compare the performance since 2007 of SPY short puts versus short put spreads. I’ll look at both risk and returns, and different ways of determining position size to adjust for the differences in risk between the two trades.

    By Jesse,

    • 1 comment
  • Signs that you Are Ready to Start Investing

    If you want to build your wealth, you have to make sure that you invest your money. If you put money into a savings account and don’t earn any interest from it, this won’t work for you in the long term. Your money will lose value because of inflation, and this is the last thing that you need. So when do you invest?

    By Kim,

  • One Year of Diversified leveraged Anchor

    I almost hate to keep saying it, but the Diversified Leveraged Anchor strategy keeps exceeding expectations and performing as designed. To remind our readers, Diversified Leveraged Anchor was created in April 2020 attempting to further increase performance, reduce risk, and to reduce volatility. 

    By cwelsh,

  • Should I Pay Off My Mortgage Early Or Invest?

    Paying off a home mortgage early is a popular financial goal. Most people feel a level financial peace when their home is paid off that is beneficial in many ways. The most common approach to paying off the mortgage early is directly making additional principal payments to the lender on a regular basis.

    By Jesse,

  • Option Order Execution Tips

    As a community of option traders, we all can relate to the occasional challenges of order execution. Best practices for avoiding errors as well as techniques for better potential execution will be the focus of this article.  Like countless others in the Steady Options community, I personally have traded thousands of option contracts over the last decade.

    By Jesse,

  • What Trading Can Offer To A Newcomer

    For any first-time investor, one of the most important questions to ask is “why are you doing this?”. Getting into investment can be thrilling and open up new worlds for you, but it can also be draining both physically and emotionally, with long days and sudden market moves always a genuine risk.

    By Kim,


  Report Article

We want to hear from you!

There are no comments to display.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Options Trading Blogs Expertido