Get on our mailing list so you know when we release free training, live classes, new courses, and even discounts and promotions.

Building a $10,000 Options Portfolio from Scratch!

Today I’m going to share with you how to build a $10,000 options portfolio.

If you’re brand new to options, check out some of the other option videos or even check out one of the courses we have available.

>>> Check Options Courses

With that being said, let’s build out and craft a portfolio using $10,000 with options.

Options Trading – The Right Way

I think a lot of people that get into trading options have a hit-and-miss approach. 

Something like this: I’ll buy a call, I’ll buy a put. Stock is going up by a call. Stock is going down by a put.

And it’s not the right approach to trading options. That’s because you have to think about things like a portfolio. You want to have a nice solid base and foundations.

The get-rich-quick scheme and concept sound all nice, but that is not working that way.

Things like: Make $300, $500 today, or $700 tomorrow. Then you lose a $1,000 the next day. And all that is just fluctuating. But it’s not a systematic approach to making it work for you.

Options Trading Portfolio 

If I’m starting and I want to build a $10,000 options portfolio, I probably want to pick a few vehicles or a few areas that I want to invest in.

I always like to give this example here in my idea concept of a portfolio.

There you have:

  • long term trades
  • medium-term trades
  • short term trades

If I’m looking to break these things down, this will be my long term investment.

This is the medium-term (think of it like 30-60 day trades), and this could be a speculative (14-day or less option contracts).

Long term trades: think of it like long delta or long duration.

That’s how I want to break it down if I have $10,000. I probably want to put about half into long term trades. I want to use about $4,500 or $5,000 probably. That would be about half. That’s about 50%.

Then for my medium-term, I probably want about $3,500 and the remaining amount for spec trades.

That’s my portfolio allocation.

Choosing a Trading Vehicle

Now we have to figure out what vehicles do I want to trade this in.

For long term duration or portfolio, you want things like Microsoft, a McDonald’s, a PNG. It could be a Johnson & Johnson. Any kind of those stocks that pay dividends.

Medium-term – it could be SPX or RUT is pretty good. You don’t have to worry about earnings.

And a 14-day – this could be a speculative thing. It could be something like Amazon, Tesla, or something else, maybe that you find.

Let’s build this out and craft or portfolio. And I probably don’t want to do more than five positions max. That’s because once you get into five positions or more than five positions, it starts becoming too much.

I might just do this based on capital. I might only just have three positions, maybe even like four positions just to balance a couple of things out on the long term scale or perhaps the medium term scale.

And maybe one speculative play. But let’s take a look here on screen and start building out a portfolio.

Building out Options Portfolio on Screen

I’m going to start crafting things out. If you have an idea in mind for what it is that you want to do the long portfolio, then you use or trade those things.

If not, you can do some research on dividend stocks or those kinds of things. 

I mean there are tons of them out there:

  • PNG 
  • Microsoft 
  • Apple 

I’ll go with Microsoft just because I like it.

There’re two approaches to doing this.

#1 I could do something like a diagonal and do it every single month

#2 I could go out further in duration and just hold on to it 

In this case, I’ll go 70 days out, and I’ll just do that duration every one or two months.

  • Why does this work?

Well, the whole point behind it is that, anyway, if you owned the stock, if the stock pulls back, well, you don’t sell out of it.

And you still hold it on for an extended time. And in our case, within 67 days, we’re probably going to have an option that’s expiring.

In that case, we would reset it. And the difference here is I don’t have to make it or skew it as huge or as major.

I can set up a diagonal, and I’m going 70 days is going to be short. That’ll be the 120. And I’m going to buy my protection on January 20. That’ll be 90 days out.

You could set up campaign calendars more advanced, but let’s just keep things simple for now.

Let’s do the call side, and let’s check this out here. If I want to go in and I’m going to go about 140 and 150. Then analyze the trade.

This is what it looks like, Think of it as a covered call strategy.

It looks very similar to that risk profile picture. And now what I can do is tweak this. I don’t like the curvature, and maybe I’ll tweak it like this.

Maybe I don’t like it that far out, so I’ll bring it back in because I think perhaps the market is toppy.

I’ll do something like this.

Now what I’ll do is bump up some of the contracts. I’ll do it because now we’re using only about $1,600 on four contracts.

You can bump up the contracts. Maybe I’ll spend $2,000 on Microsoft. Perhaps another $2,000 somewhere else.

I’ll bump up the contracts to about 6. Let’s go with six, and that gives me a nice situation. And then I’ll do something else with McDonald’s.

Maybe with McDonald’s, I say well I don’t think it’s going to go as high because it’s doing that pullback and maybe it’ll stay a little stable.

What I could do is go ahead, and I might only do a 36-day contract. Since long portfolio typically long Delta. What I want is either long Delta or long Vega. 


Because when that pullback happens that Vega will help me out. I’ll go to December to buying my protection, and let’s go to about the 220 and analyze this trade.

Now you can see I’m still long delta overall. My delta here if I zoom in still got long delta. And you can see I’m bullish on that position.

And if it explodes, that actually might be a little bit of a problem. I could tweak it just a little bit. Some of these are not traded. Here is what we need to do.

Because it’s a flat calendar, I might just move it to the 230. And that way I’m risking a little bit less. But it’s still a long portfolio.

That trade is costing me about $60 on the contracts. But I have room to run. I don’t want to use my full capital or anything like that. But it gives you a little bit more room.

This is possibly a losing trade meaning that the theta works a little bit against me. I don’t want to go too high on the amount of contracts. Because we have $2,500 or so and Microsoft, we might do about 500 or 700 on this. I want to pull this off fairly soon.

The other thing I could do is to change this to maybe five contracts and analyze the trade. And maybe go to 220.

This might be a better approach. Now I could do more of a double calendar like this, and that slowly adjust my position. And even place one over here at the 210.

You can see it’s a triple calendar that’s skewed and stacked. What a position, right.

Why would I do something like this?

My risk is about $1,000 between all those contracts. I have two contracts on the 210. I have three contracts on the 220 and 5 contracts on the 230.

I’m offsetting and giving myself a cushion and room to make money from the theta on the 210. And that way, it helps pay for if the stock doesn’t move. And I’m still long delta if that continues to move and run up, that’s perfect.

And what I can do is I could make about $1,200. You could see over here about $1,200 at the maximum.

Let’s say you’re aiming for about $700-$800 on about $900 of risk. It’s pretty much a one to one return. Fantastic. This could be the next setup. I’m still long delta. I have good theta I have good Vega. 

What might I do next?

Looking at our portfolio here, I want to do a 30 to 60-day trade.

Which could be like an iron condor. Why did I do these? Some of these are 30 or 60 days.

Once this 30 and 60-day trade is over, I’ll put another 30 to 60-day trade. And I keep doing it because I’m long the stock. It is just like in a regular investment account. You’re just holding on to it in the same way here – it’s no different.

Long Delta similar concept. It’s just you’re also making profits if that stock stands still as well.

Take a Look at the Next Trade

If we look at this as a portfolio basis, you can see here’s our portfolio. And that means I have a Microsoft and I have the McDonalds.

So far, we’re using about $3,000 cash. It’s the basic scenario. Let’s go to Microsoft or another trade here.

And that’ll be the SPX. This is my 30 to 60-day trade since I have a lot of long Vega. I want to shorten that up.

And to shorten that up, I might do 43-day trade on the weeklies. That’s the SPX. I’ll sell an Iron Condor. These are the weeklies.

Let me just go back to a single symbol here.

Currently this the stock is 2946. Call it 3140 and my puts 2670 and 2640.

Go there and see where we’re at.

Now I have this SPX.

I still want a negative Delta because now we’re getting some negative Vega. Since the other ones we have are positive Vega, this will help balance things.

And I’ll sell a couple of contracts. This will put me at about $5,000. That might be a little too much.

What I could do to compensate this is to reduce the strike prices a little bit by ten. And reduce that by about ten. Now I’m using only about $2,600, and I think I might bump it up one more.

There we go – $3,500 about a negative 100 Vega, and now if we do a portfolio beta weighted, you can see what’s going on. I have in our breakdown list I have McDonald’s.

There are my contracts. I have Microsoft, and I have SPX. When you look at this total portfolio, that’s my portfolio.

It’s still somewhat long Delta. My Vega, when you can see it’s only about 20. I’m still a little bit long Delta. I’d prefer a little more long delta because I have more of my cash and capital in the long term.

But we could easily tweak that by reducing of the SPX. I could trade less contracts there. Or skewing one leg versus the other. I could turn it a little bit more bullish.

Let’s wait for a specular trades because I’m going to do a little bit more of a bullish speculative trades. And that’ll help balance things out.

Here we go. There’s our portfolio — still long Delta.

Speculative Trades

Let’s do on Amazon.

I’m going to put a speculative trade. I’ll go about 15 days out.

Also, I’m going to do a quick butterfly.

There’s Amazon. You can see it’s trying to bounce here. That could put on a bit of a butterfly – 15 days out.

You could do an Iron Butterfly if you want. Here are our butterfly and a single symbol. And let’s rearrange and move some of these things around.

Here I have the lower end. Let’s do about 1780. Now what I want to do is take into account where I’m at. The whole point of this butterfly – take a look at the cash and capital that I’m using.

It’s only about $320. It’s not a lot. It’s a speculative play. I’m looking for this stock to move.

How do I do that?

Well, I position it further out, call it 1800. This one now I’ll go to about 1830. And this one may be about 30 points under.

It’ll be 1770. Now I have a little bit more of a speculative play. 1800 is pretty far out compared to where we are. So 70 points higher in the next two weeks. And it could be a little bit of a spec play.

The whole point is because it’s directional, much more directional spec play. But I still have a little bit of negative Vega. I still have that Delta.

And you can see I’m only risking about $310. 

It’s not a lot of a risk right there.

Let’s see our total portfolio. It’s going to be a little bit skewed or weird with this Amazon trade just because it’s going to take that first expiration.

Our total portfolio risk on this will be less than $10,000. We’re looking at about $6,000 on that one. We’ll bump this up to two contracts.

Let’s check it out without Amazon. We’re using about $6,000 on all the other trades without Amazon. I’ll bump up against one of these contracts on the McDonald’s and Microsoft. We’re about $7,500. We have about $2,500 left for our Amazon trade.

And if I just go to Amazon on its own, I’m using about $1,000. You know $620 and gives you a little bit more cash on the side. That’s just in case things move against you, or you need adjustments.

Let’s leave it like that. And that’s how you would build a portfolio with $10,000. If you want to trade differently and you want to see these expirations match up, you’d have to go more in November or December.

That’s because now the curvature starts to match up more closely. Right now, Amazon is skewing those things differently.

With that being said, that’s how you would do it. That’s how you would trade it. I would go with October, November weeklies there.

Leave out Amazon out as you’re doing these setups, and you’re looking at it because it’s going to skew your profit picture. And you can see the majority of the movement still long Delta. And you have a neutral Vega as well.

And that would be building out your portfolio the smart way.

Final Word

Hopefully, this gave you an idea and insight on how you would do it when you’re building out a portfolio with $10,000.

If you’re serious about learning to trade options the right way, check out some of the video courses I have, which is a good foundation and fundamental a starting point.

Then, of course, you could join us in our group coaching sessions, get a one-on-one coaching session, or even join one of the live webinars that we have.

Join other stock who get a trading edge each week with our newsletter

Get our free stock market tip, video reviews, and exclusive announcements.

No spam, no gimmicks, no junk - Unsubscribe anytime


Thanks for joining me on my trading website where I share with you about trading stocks and options.

DOWNLOAD 100 Stock trading tips Book

Ready to check out some of our best-selling books that can help you become a better and more profitable trader? Check them out by clicking the link below… 

Video recaps on the recent market trends

Summary of recent market activity looking at swing chart opportunities, potential setups, and technicals.

Stock market picture charts annotated

Quickly review screen captured stock charts with annotations. Includes support, resistance, ABCD patterns, and possible breakouts.

want some helpful advice?

Pay-Per-Minute Coaching

I am scheduling helpful coaching sessions for people who are interested in real-world advice & guidance where you only pay per session. No long term commitment required.

This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.



Learn to see how I personally use the ThinkorSwim platform to trading options and what are some of the tips and tricks to using this platform efficiently!



Enter your email address below and get access to our downloadable report on the 50+ great stocks for Options Traders!



Want to know the top 7 ETFs that pays the biggest dividends in 2020? Download this list now and start earning your dollars!




Trade and earn like Warren Buffet! Here are the stocks he invests in!

Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...


Then sign up to get our free educational videos!


Just one more thing... 

Ready to Learn Profitable Strategies to Trading Stocks?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...


Then sign up to get our free educational videos!


In order for you to get your goodies and freebies you have to confirm your email address.


To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.


That's its!

Just one more thing... 

Portfolio Allocation - Percentage of Each Stock

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...


Then sign up to get our free educational videos!

Quickly Calculate Mid-Day Volume

This Excel sheet will allow you to quickly find out if your stock's volume is trading above or below the daily average during the middle of the day.

Top 15 Dividend Stocks for Retirement in 2020

Download our list of the best stocks for retirement. Simply enter your email address below to get the PDF!

Buying or Building a Trading Computer for 2020

Learn how to buy the right computer for your trading needs or choose the perfect parts if you are custom building a trading computer!




Top 25 Tech Gear for Traders

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...


Then sign up to get our free educational videos!

Awesome Phone Apps for Traders

Discover these awesome phone apps most traders use on trading! Earn money anytime, anywhere with these apps!

Do you want to download a list of over 125+ popular stocks that you should keep your eye on?


Enter your email below and we will email you the list of 125+ hot stocks!


Download my easy worksheet so that you can quickly see and know what the greeks will do to your position! 


Enter your email address below to download it!


Enter your email address below and get access to our video strategy session on 25+ option strategies and how to set them up!


How Long Will it Take to Reach $1,000,000 in The Stock Market?

Want to see for yourself how long it will take you to reach $1,000,000 based on your personal return?


Then download my Excel cheatsheet for FREE to see and play with the numbers!


Ready to get a deep understanding of the option Greeks?


Get access to my video training by entering your email address below!


Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...


Then sign up to get our free educational videos!


In order for you to get your goodies and freebies you have to confirm your email address.


To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.


That's its!

Just one more thing...