9d (edited) • Community Calls
Community Call - November 25: From Stream to River to Rapids
Huge thank you to Danni and Julie for an amazing call today. This one was such a perfect example of how we can go from totally passive to active cashflow in a really intentional way.
On this call we walked through:
🔹 The River of Wealth 6-Step Investing Journey
- 🏞 Stream – Truly set-and-forget investing (index funds + robo-advisors like Wealthfront/Betterment).
- 🌊 River – Core ETF holdings + a handful of individual stocks.
- ⚡️ Rapids – Options as a cashflow engine once your foundation is solid.
🔹 How to think about:
- Core holdings (VOO, QQQ, etc.)
- Optional add-ons (tilts + a few favorite names)
- Growth engine (income strategies like cash-secured puts and bull put spreads)
🔹 Turning a monthly cashflow goal into a planWe used Danni’s goal of $2K–$5K/month as a live example and talked about:
- Why a realistic target for options is 1–3% per month
- What kind of portfolio size and structure can get you there over time
- Why we still build on top of solid core holdings instead of “all rapids, all the time”
🔹 Live options + Thinkorswim walkthroughWith Julie’s help we walked through:
- A bull put spread built step-by-step (including how we sized it to target ~$2K profit)
- Why we close at 50% profit instead of waiting until expiration
- How to place and close a vertical spread quickly in Thinkorswim
- Key columns like P/L Open, P/L Day, Buying Power Effect, Delta, Theta, Net Liq, and what they actually mean in practice
I love how much real progress you’re all making – especially seeing people move from paper trading → confidence → eventually, real-money positions with clear rules and risk management.
If you were on the call (or watching the replay), drop this in the comments:
- Are you currently mostly in the Stream, River, or Rapids?
- What’s your monthly cashflow goal from options over the next 12 months?
- What’s one concrete action you’ll take this week?
Replay + Fathom highlights coming right below this post. ⬇️
Can’t wait to see your questions, takeaways, and screenshots of your first (or next) trades. 💛📈
Meeting Purpose
Key Takeaways
- Investing Paths: Choose a path based on time commitment: passive (Stream), semi-active (River), or active cash flow (Rapids).
- Bull Put Spreads: A key Rapids strategy for cash flow, offering high ROI on risk by capping potential loss.
- 50% Profit Rule: Close trades at 50% profit to capture the fastest part of time decay and free up capital for new trades.
- Thinkorswim Workflow: Use the right-click menu to quickly create and manage spreads, a more efficient method than the standard workflow.
Topics
Investing Paths & Goals
- The group reviewed the "River of Wealth" framework, which defines investing paths by time commitment and risk appetite.
- Stream (Passive): 1–2 hrs/yr.Strategy: Invest in index funds (e.g., VOO for S&P 500) or use robo-advisors (e.g., Wealthfront).Rationale: Most active managers fail to beat the market; passive investing is a high-return-on-time approach.
- River (Semi-Active): 1–2 hrs/wk.Strategy: A hybrid approach with a core of passive ETFs (50–65%) and a smaller allocation to individual stocks (10–20%).Rationale: Provides market exposure while allowing for active picks to potentially outperform.
- Rapids (Active Cash Flow): 1–2 hrs/day.Strategy: Generate income via options trading (e.g., cash-secured puts, spreads).Goal: Target 1–3% monthly return. A $100k portfolio could yield $2k/month at 2% return.
Options Strategy Demo: Bull Put Spread
- Jeff demonstrated a bull put spread on Google (GOOG) using the Thinkorswim paper money account.
- Trade Goal: Generate $2,000 in profit.
- Execution:Setup: Sold a 20-contract, 10-point spread (295/285) with 52 days to expiration.Premium: Collected $3,900.Risk: Max loss was capped at $20,000.Close Order: Placed a GTC limit order to buy back the spread at $0.97, securing a 50% profit ($1,950).
- Rationale: Spreads cap risk, making them more capital-efficient than cash-secured puts.
Platform Workflow & Analysis
- Julie demonstrated a faster Thinkorswim workflow using the right-click menu to create and manage spreads directly from the options chain.
- Key Portfolio Metrics Explained:Delta: Measures directional exposure. A 100 Delta is equivalent to owning 100 shares.Theta: Measures time decay. A positive theta means the position gains value daily from time passing.BP Effect (Buying Power Effect): The capital required to secure the trade, equal to the max loss for a spread.Net Liquidity: The current market value of the position. It is negative for a sold option, as it represents an obligation to buy it back.
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Community Call - November 25: From Stream to River to Rapids
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