Friday, September 1, 2017

Options Update: August 2017

My goal with DivGro is to generate a reliable and growing dividend income stream. I invest mainly in quality dividend growth stocks with a track record of paying and regularly increasing dividends.

In June 2016, I started trading options to boost my income from dividends. I sell covered calls and secured puts on dividend stocks I own or would like to own. The options income I collect flows back into DivGro, just like dividends. It provides extra cash to buy more dividend growth stocks.

Through July 2017, I've collected options income totaling about $16,400. Of that total, about $8,800 is secured, meaning I no longer have any obligations to fulfill. My monthly options update serves as a status report on the open options and the obligations I have. I also report on new trades and I provide a running tally of DivGro's options income to date.

In 2017, I'm aiming to earn at least $8,400 in options income. This month I didn't gain much, as most of my trades were focused on rolling forward options—in some cases at a net loss. Sometimes it is necessary to give up some secured options income in order to improve your options positions, and that's exactly what I did in August.

So I added only $32 in secured options income in August, increasing $2017's total to $6,305. (Last month I secured $1,376 in options income, so this month's small gain is not a train smash...)

On the other hand, I've added $2,087 in options income to my account in August!

This month, four options expired and I closed one option early. Additionally, I rolled forward six options and I sold two covered calls and one secured put. Finally, one put option was assigned in August, allowing me to buy CSCO shares at a small discount.

Assigned Options


When an option holder exercises an option, it is set to be assigned.

In August, one option contract I'd sold got assigned.

#068 :   2xCSCO 18 Aug 2017 31.00 P :: $ 146.00 ($ -0.99)

On option expiration day, Cisco Systems (CSCO) closed at $30.37 and so the puts got assigned. I was obliged to buy 200 shares of CSCO at $31 per share. However, since I received about 73¢ per share in options premium, effectively I paid $30.27 per share.

I now own 500 CSCO shares at an average cost basis of $31.10 per share and an average yield on cost of 3.73%. The buy boosts DivGro's projected annual dividend income by $232.

Expired Options


In July, three short options expired, all three of them puts:

#087 :   5xBAC 18 Aug 2017 22.00 P :: $ 190.00 ($ -6.48)
#082 :   1xCVS 18 Aug 2017 75.00 P :: $ 222.00 ($ -0.80)
#080 :   1xOC 18 Aug 2017 60.00 P :: $ 210.00 ($ -1.95)
#096 :   2xWBA 25 Aug 2017 75.00 P :: $ 130.00 ($ -0.99)

On options expiration day, Bank of America (BAC) closed at $23.50, CVS Health (CVS) closed at $77.66, and Owens Corning (OC) closed at $67.10 and so these short put options all expired. Also, Walgreens Boots Alliance (WBA) closed at $81.13, so my short puts on WBA also expired.

Closed Options


When an out of the money option goes further out of the money, you can close the option early and secure most of the options income.

In August, I closed one option early:

#066 :   1xCSCO 20 Oct 2017 33.00 C :: $ 189.00 ($ -19.68)→ secured 90% of available income

The cost of buying back the put options is shown in parentheses.

Rolled Options


Rolling forward options means buying back an option and selling another option with a later expiration date. You can do this to avoid options assignment for in the money options.

In August, I rolled forward several options.

The first is is on AbbVie (ABBV), which popped about 8% in the last two weeks. With the stock now trading above $75 per share, even the new strike price is in the money. Also, I had to go all the way to June 2018 to make the roll reasonable:

#077 :   2xABBV 15 Sep 2017 67.50 C :: $    408.00 ($ -1,295.88)→ #103
#103 :   2xABBV 15 Jun 2018 70.00 C :: $ 1,373.00 ($        -1.32)

The average cost basis of my 200 shares is $61.65, so the $70 strike price represents an upside of 13.5%. My last buy was on 5 December 2016, so if the call options are not exercised before 6 December, the capital gains would be long-term gains.

Ford Motor (F) is one of the stocks that has "given" me more than $1,000 in options premium income. While the stock price remains under pressure, I can continue to sell covered calls and "make up" for unrealized losses:

#088 : 20xF 15 Sep 2017 12.00 C :: $ 220.00 ($ -62.44)→ #105
#105 : 20xF 16 Mar 2018 12.00 C :: $ 480.00 ($ -25.68)

F is trading above $11 again on a good truck sales report, so my roll forward was well-timed. I decided to go for the March 2018 expiration, as Ford sometimes pays a special dividend in January in addition to its regular 15¢ per share dividend.

Gilead Sciences (GILD) is another Health Care sector stock that popped recently. The stock traded at a new 52-week high of $84.10 this week, well above my average cost basis of $80.23 per share. To protect my shares (somewhat), I rolled forward the $75 options to $80 strike options expiring in February 2018.

#074 :   2xGILD 15 Sep 2017 75.00 C :: $ 210.00 ($ -949.47)→ #106
#106 :   2xGILD 15 Feb 2018 80.00 C :: $ 923.00 ($     -1.91)

If GILD still trades well above $80 in the new year, I'll probably roll forward these options again!

Target (TGT) recovered nicely from its 52-week low of $48.56. The stock now trades at about $56, so I decided to roll forward my puts and to increase the strike price to $50:

#084 :   2xTGT 20 Oct 2017 45.00 P :: $ 248.00 ($ -22.58)→ #108
#108 :   2xTGT 19 Jan 2018 50.00 P :: $ 336.00 ($   -1.59)

Wells Fargo (WFC) is going in the opposite direction as the company's account scandal broadened. With the external review now over, hopefully, WFC can start rebuilding customer's trust.

#097 :   3xWFC 15 Sep 2017 52.50 P :: $ 222.00 ($ -245.86)→ #109
#109 :   3xWFC 19 Jan 2018 50.00 P :: $ 364.00 ($     -1.30)

I decided to roll forward the WFC put options to January 2018 and also to drop the strike price to $50. Let's see if WFC can turn things around!

Finally, with Wal-Mart (WMT) trading above $78 per share, I decided to roll forward and increase the strike price of my WMT puts:

#086 :   2xWMT 15 Sep 2017 70.00 P :: $ 246.00 ($ -9.16)→ #110
#110 :   2xWMT 15 Dec 2017 75.00 P :: $ 314.00 ($ -2.57)

With several of these trades, I collected extra premium income by rolling forward the options. The exception is that rolling forward my GILD covered calls cost me about $27.

New Covered Calls


Selling covered calls is a way to collect extra income on stocks you already own. Since my last update, I executed two new covered call trades:

#104 : 2017-08-30: Sold to Open 3 Contracts of Option CSCO Feb 16 2018 34.00 C

I own 300 shares of Cisco Systems (CSCO) at a cost basis of $31.10 per share. I'm willing to sell these shares for $34.00 on or before 16 February:

Open Date :  2017-08-30
Expiration Date :  2018-02-16    Number of Days in Trade : 170
Cost Basis :  $31.10 per shareGain at Strike Price : 9.32%
Strike Price :  $34.00 per share
Number of Contracts : 3Number of Shares :300
Call Premium :  $0.61 per shareOptions Income : $182.00
Commission : $2.38
Net Premium :  $0.599 per shareNet Options Income : $179.62
Options Yield :  1.93%Annualized Options Yield : 4.14%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $30.50Gain if Exercised : 11.47%

This covered call yields 1.93%, or 4.14% on an annualized basis. The yield on cost of my CSCO position is 3.73%, so I'm boosting dividend income by a factor of 1.11. If the options are exercised, I'll sell 300 shares of CSCO at a reduced cost basis of $30.50 per share, for capital gains of 11.47%.


#107 : 2017-08-30: Sold to Open 4 Contracts of Option QCOM Apr 20 2018 60.00 C

I own 400 shares of Qualcomm (QCOM) at a cost basis of $60.49 per share. I'm willing to sell these shares for $60.00 on or before 20 April:

Open Date :  2017-08-30
Expiration Date :  2018-04-20    Number of Days in Trade : 233
Cost Basis :  $60.49 per shareGain at Strike Price : -0.81%
Strike Price :  $60.00 per share
Number of Contracts : 4Number of Shares :400
Call Premium :  $1.31 per shareOptions Income : $524.00
Commission : $1.99
Net Premium :  $1.305 per shareNet Options Income : $522.01
Options Yield :  2.16%Annualized Options Yield : 3.38%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $59.18Gain if Exercised : 1.38%

This covered call yields 2.16%, or 3.38% on an annualized basis. The yield on cost of my QCOM position is 3.77%, so I'm boosting dividend income by a factor of 0.90. If the options are exercised, I'll sell 400 shares of QCOM at a reduced cost basis of $59.18 per share, for capital gains of 1.38%.



For covered calls, I think an achievable goal is to earn double the dividend income. Both these covered calls fail to accomplish that goal.

New Put Contracts


Selling put options allows me to set the price I'm willing to pay for a stock I want to buy. In effect, I get paid while waiting for the share price to drop! I sold only one put contract in this period:

#102 : 2017-08-18: Sold to Open 2 Contracts of Option HRL Dec 15 2017 32.50 P

I'm willing to buy 200 shares of Hormel Foods (HRL) for $32.50 per share on or before 15 December. HRL closed at $34.09 per share on the date of my trade:

Open Date :  2017-08-18
Expiration Date :  2017-12-15    Number of Days in Trade : 119
Price at Close :  $34.09 per shareDiscount at Strike Price : 4.66%
Strike Price :  $32.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.00 per shareOptions Income : $200.00
Commission : -$0.11
Net Premium :  $1.001 per shareNet Options Income : $200.11
Options Yield :  2.94%Annualized Options Yield : 9.01%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $31.50Discount if Exercised : 7.60%

This put option trade yields 2.94%, or 9.01% on an annualized basis. At $34.09 per share, HRL yields 1.99%, so I'm boosting dividend income by a factor of 4.52. If the options are exercised, I'll buy 200 shares at a cost basis of $31.50 per share, a discount of 7.60%.



For selling puts I like to see a dividend boost factor of 5.00 or more, unless I can buy shares at a discount of at least 10%. With a factor of 4.52, my put trade on HRL is close enough to the 5.00 target.

Options Expiring Next Month


The following option expires in September, so I'll be monitoring it closely:

#067 :  1xHRL 15 Sep 2017 37.50 C ::Closed at $30.74 on 31 Aug (22% safety margin)

HRL is trading well below the $37.50 strike price, so I'll just wait for the call to expire.

Options Income Tally


Here is a running tally of the total amount received from options trades, as well as the options premiums secured due to options that expired:

key:  expired  •  closed  •  rolled  •  assigned  •  open 

IDDATE:NO×TICKER OPTIONINCOME( EXPENSES )ROLLEDTOTAL➤ SECURED
#1102017-08-30:  2×WMT 15 Dec 2017 $75.00 P $    314.00 ( $        -2.57 )$ 18,492.98 ➤ $ 8,816.98 
#1092017-08-30:  2×WFC 19 Jan 2018 $50.00 P $    364.00 ( $        -1.30 )$ 18,181.55 ➤ $ 8,819.55 
#1082017-08-30:  2×TGT 19 Jan 2018 $50.00 P $    336.00 ( $        -1.59 )$ 17,818.85 ➤ $ 8,820.85 
#1072017-08-30:  4×QCOM 20 Apr 2018 $60.00 C $    524.00 ( $        -1.99 )$ 17,484.44 ➤ $ 8,822.44 
#1062017-08-30:  2×GILD 15 Feb 2018 $80.00 C $    923.00 ( $        -1.91 )$ 16,962.43 ➤ $ 8,824.43 
#1052017-08-30:20×F 16 Mar 2018 $12.00 C $    480.00 ( $      -25.68 )$ 16,041.34 ➤ $ 8,826.34 
#1042017-08-30:  3×CSCO 16 Feb 2018 $34.00 C $    182.00 ( $        -2.38 )$ 15,587.02 ➤ $ 8,852.02 
#1032017-08-30:  2×ABBV 15 Jun 2018 $70.00 C $ 1,373.00 ( $        -1.32 )$ 15,407.40 ➤ $ 8,854.40 
#1022017-08-18:  2×HRL 15 Dec 2017 $32.50 P $    200.00 ( $        -0.11 )$ 14,035.72 ➤ $ 8,855.72 
#1012017-07-18:  3×PFE 15 Dec 2017 $34.00 C $    210.00 ( $        -2.39 )$ 13,835.83 ➤ $ 8,855.83 
#1002017-07-18:  2×LOW 19 Jan 2018 $75.00 P $    830.00 ( $        -2.59 )$ 13,628.22 ➤ $ 8,858.22 
#0992017-07-18:  3×GE 18 Jun 2018 $30.00 C $    153.00 ( $        -2.09 )$ 12,800.81 ➤ $ 8,860.81 
#0982017-07-18:  3×NKE 19 Jan 2018 $50.00 P $    301.00 ( $        -3.85 )$ 12,649.90 ➤ $ 8,862.90 
#0972017-07-18:  3×WFC 15 Sep 2017 $52.50 P $    222.00 ( $    -245.86 )→ #109$ 12,352.75 ➤ $ 8,866.75 
#0962017-07-18:  2×WBA 25 Aug 2017 $75.00 P $    130.00 ( $        -0.99 )$ 12,376.61 ➤ $ 8,890.61 
#0952017-07-18:  1×TXN 20 Oct 2017 $75.00 P $    134.00 ( $        -0.80 )$ 12,247.60 ➤ $ 8,761.60 
#0942017-07-18:  2×SBUX 19 Jan 2018 $52.50 P $    246.00 ( $        -1.00 )$ 12,114.40 ➤ $ 8,762.40 
#0932017-07-18:  1×DIS 20 Oct 2017 $97.50 P $    105.00 ( $        -0.80 )$ 11,869.40 ➤ $ 8,763.40 
#0922017-07-18:  1×AAPL 20 Oct 2018 $130.00 P $    114.00 ( $        -1.00 )$ 11,765.20 ➤ $ 8,764.20 
#0912017-07-01:  3×GE 15 Sep 2017 $33.00 C $      98.50 ( $        -4.97 )→ #099$ 11,652.20 ➤ $ 8,765.20 
#0902017-06-21:  2×TGT 19 Jan 2018 $65.00 C $      76.00 ( $        -1.97 )$ 11,558.67 ➤ $ 8,671.67 
#0892017-06-21:  2×INTC 20 Oct 2017 $36.00 C $    152.00 ( $        -0.99 )$ 11,484.64 ➤ $ 8,673.64 
#0882017-06-21:20×F 15 Sep 2017 $12.00 C $    220.00 ( $      -62.44 )→ #105$ 11,333.63 ➤ $ 8,674.63 
#0872017-06-21:  5×BAC 18 Aug 2017 $22.00 P $    190.00 ( $        -6.48 )$ 11,176.07 ➤ $ 8,517.07 
#0862017-06-16:  2×WMT 15 Sep 2017 $70.00 P $    246.00 ( $        -9.16 )→ #110$ 10,992.55 ➤ $ 8,333.55 
#0852017-06-16:  1×VLO 15 Dec 2017 $70.00 C $    230.00 ( $        -0.80 )$ 10,755.71 ➤ $ 8,096.71 
#0842017-06-16:  2×TGT 20 Oct 2017 $45.00 P $    248.00 ( $      -22.58 )→ #108$ 10,526.51 ➤ $ 8,097.51 
#0832017-06-16:  3×PPL 20 Oct 2017 $37.00 P $    147.00 ( $        -0.11 )$ 10,301.09 ➤ $ 7,872.09 
#0822017-06-16:  1×CVS 18 Aug 2017 $75.00 P $    222.00 ( $        -0.80 )$ 10,154.20 ➤ $ 7,872.20 
#0812017-06-16:  2×AXP 21 Jul 2017 $80.00 P $    266.00 ( $        -1.00 )$ 9,933.00 ➤ $ 7,651.00 
#0802017-05-12:  1×OC 18 Aug 2017 $60.00 P $    210.00 ( $        -1.95 )$ 9,668.00 ➤ $ 7,386.00 
#0792017-05-12:  2×KO 19 Jan 2018 $45.00 C $    200.00 ( $        -3.13 )$ 9,459.95 ➤ $ 7,177.95 
#0782017-05-12:  2×DIS 15 Dec 2017 $110.00 C $ 1,090.00 ( $        -1.01 )$ 9,263.08 ➤ $ 7,181.08 
#0772017-05-12:  2×ABBV 15 Sep 2017 $67.50 C $    408.00 ( $ -1,295.88 )→ #103$ 8,174.09 ➤ $ 7,182.09 
#0762017-04-21:  2×LOW 21 Jul 2017 $80.00 P $    408.00 ( $    -743.57 )→ #100$ 9,061.97 ➤ $ 8,069.97 
#0752017-04-21:  3×INTC 16 Jun 2017 $35.00 P $    189.00 ( $        -3.86 )$ 9,397.54 ➤ $ 8,405.54 
#0742017-04-21:  2×GILD 15 Sep 2017 $75.00 C $    210.00 ( $    -949.47 )→ #106$ 9,212.40 ➤ $ 8,220.40 
#0732017-04-21:20×F 16 Jun 2017 $12.00 C $    320.00 ( $        -9.11 )$ 9,951.87 ➤ $ 8,959.87 
#0722017-04-21:  1×D 20 Oct 2017 $77.50 C $    323.00 ( $        -0.35 )$ 9,640.98 ➤ $ 8,648.98 
#0712017-04-21:  5×BAC 21 Jul 2017 $20.00 P $    160.00 ( $        -2.28 )$ 9,318.33 ➤ $ 8,649.33 
#0702017-04-04:  1×XOM 19 May 2017 $80.00 P $    116.00 ( $        -1.00 )$ 9,160.61 ➤ $ 8,491.61 
#0692017-04-04:  2×INTC 19 May 2017 $36.00 P $    192.00 ( $        -0.99 )$ 9,045.61 ➤ $ 8,376.61 
#0682017-04-04:  2×CSCO 18 Aug 2017 $31.00 P $    146.00 ( $        -0.99 )$ 8,854.60 ➤ $ 8,185.60 
#0672017-04-03:  1×HRL 15 Sep 2017 $37.50 C $      84.00 ( $        -1.10 )$ 8,709.59 ➤ $ 8,040.59 
#0662017-04-03:  1×CSCO 20 Oct 2017 $33.00 C $    189.00 ( $      -19.68 )$ 8,626.69 ➤ $ 8,041.69 
#0652017-03-20:  1×WBA 21 Apr 2017 $84.00 P $    184.00 ( $        -1.10 )$ 8,457.37 ➤ $ 7,872.37 
#0642017-03-17:  1×TGT 19 Jan 2018 $65.00 C $      93.00 ( $        -1.10 )$ 8,274.47 ➤ $ 7,689.47 
#0632017-03-17:  1×PG 15 Dec 2017 $90.00 C $    492.00 ( $        -1.11 )$ 8,182.57 ➤ $ 7,690.57 
#0622017-03-17:  2×PFE 15 Sep 2017 $35.00 C $    220.00 ( $      -22.57 )→ #101$ 7,691.68 ➤ $ 7,691.68 
#0612017-02-24:  1×TGT 20 Oct 2017 $75.00 C $    157.00 ( $        -5.68 )→ #064$ 7,494.25 ➤ $ 7,494.25 
#0602017-02-24:  2×QCOM 21 Jul 2017 $57.50 C $    580.00 ( $    -123.57 )$ 7,342.93 ➤ $ 7,342.93 
#0592017-02-24:  2×QCOM 21 Jul 2017 $57.50 C $    573.00 ( $    -123.07 )$ 6,886.50 ➤ $ 6,886.50 
#0582017-02-24:  1×PFE 15 Sep 2017 $35.00 C $    113.00 ( $      -12.09 )→ #101$ 6,436.57 ➤ $ 6,436.57 
#0572017-02-24:  3×INTC 19 May 2017 $35.00 P $    270.00 ( $      -42.70 )$ 6,335.66 ➤ $ 6,335.66 
#0562017-02-24:10×F 16 Jun 2017 $13.00 C $    350.00 ( $      -47.99 )$ 6,108.36 ➤ $ 6,108.36 
#0552017-02-24:  2×CVS 19 May 2017 $75.00 P $    184.00 ( $        -0.99 )$ 5,806.35 ➤ $ 5,806.35 
#0542017-02-24:  2×ABBV 19 May 2017 $65.00 C $    194.00 ( $    -366.58 )→ #077$ 5,623.34 ➤ $ 5,623.34 
#0532017-02-10:  2×QCOM 17 Mar 2017 $55.00 C $    177.00 ( $    -374.58 )→ #059$ 5,795.92 ➤ $ 5,795.92 
#0522017-02-07:  2×QCOM 10 Feb 2017 $53.50 C $      42.00 ( $    -108.37 )→ #053$ 5,993.50 ➤ $ 5,993.50 
#0512017-01-26:  2×QCOM 17 Mar 2017 $52.50 P $    336.00 ( $      -42.58 )$ 6,059.87 ➤ $ 6,059.87 

key:  expired  •  closed  •  rolled  •  assigned  •  open 

For a complete listing of all options transactions, please visit my Options History page.

Goals Progress


I count secured options income, which is income from options with no further obligations.


Total
Options Income
Secured
Options Income
This Month:
$ 18,493$   8,817
Last Month:
$ 16,406$   8,785
Difference:
$   2,087$        32

I started 2017 with $2,512 in secured options income, so with $8,817 secured through August 2017, I've earned $6,305 in options income. This is 75.1% of my options income goal of $8,400 for 2017.

Take care everybody and thanks for reading!

I'm still a learner options trader. If you see anything you disagree with or question, please let me know in the comments below. Or if you just want to share some advice or encouragement, I'd be happy to hear from you, too!

16 comments :

  1. Great job DivGro! I'm glad I happened to get on the net just now and see that you posted. WFC is making me mad (though I'm thankfully still in the green - the scandals need to stop! It's too easy for banks to do well right now if they just do the right thing!) Anyway, I just posted my August Passive Income Report...things are moving in the right direction I think! Take care,

    Dan

    ReplyDelete
    Replies
    1. Hi Dan -- thanks for visiting and commenting. I'll check out your August Passive Income Report when I get a chance. I'm really hoping WFC can turn things around now. The third party report is why they announced more compromised accounts yesterday. With the investigation being finalized now, the magnitude of the scandal seems to mostly defined... of course, we'll have to wait and see what the impact would be. In the long-term, though, I think WFC will be fine.

      Delete
  2. I like the new contracts. I'm selling QCOM calls too.

    ReplyDelete
    Replies
    1. Cool! All the best with your QCOM calls! We'll see how it goes.

      Delete
  3. Thx for the detailed report. And nice results already!

    ReplyDelete
    Replies
    1. Thanks, Amber -- keeping the options premiums flowing, just like the divvies!

      Delete
  4. Very nice month!

    It feels like GILD has been languishing forever. Finally they made the acquisition Mr. Market was holding out for and he seems to approve. I want to see a little more share price appreciation before I start selling calls. I still think it's deeply undervalued.

    ReplyDelete
    Replies
    1. I'm really hoping GILD will get going now... of course, if the stock does so slowly, trading in a reasonable band for a while, we can sell more options!

      Take care and happy investing!

      Delete
  5. Wow great job! I really like the clean summary - it's a pleasure to read and understand what you're doing and why. As I've absolute no experience with options, I wonder if one option couldn't be exercised before expiration date when it is "in the money"? I just read this before: http://www.investopedia.com/articles/optioninvestor/09/when-exercise-options.asp.

    I see the reasons not to exercise before expiration date, but nevertheless some option holder will exercise the option. Did this happened to you before? What was your initial reaction and what's your plan of action if it will happen?

    I'm looking especially to the sold call options. I don't think you really want to sell all these shares and loose your cost base. ABBV would be a great example. You're rolling now to protect your shares, but it was already in the money. What if the options got exercised and you would've lost all your ABBV shares?

    Keep up the great work, you're a great inspiration!

    ReplyDelete
    Replies
    1. Hi DivRider -- thanks for visiting and for your kind words!

      Yes, US style options can be exercised before the expiration date. With options on dividend paying stocks, that can happen if the option holder want to "earn" the dividend. So, when looking at expiration dates, I also look at the ex-dividend date of the the underlying stock, just to make sure that I'm well-informed about what could happen.

      I've had shares "called away" in this manner. One time, only one of three options was exercised... the other two expired about a month later. The reason was that the options holder wanted to receive the dividend. I was frankly surprised by the exercise, especially because only 1 or 3 contracts got exercised.

      The thing is, by selling calls, I "know" beforehand what the possible outcomes are, and I'm OK with any of them. I'm not at all concerned if shares get called away, even ABBV. I'd make a pretty penny in the process and get another opportunity to invest in another great stock.

      Remember, since June 2016 I've collected and reinvested about $18,500 in options income. One would have to invest quite a bit of money to earn $18,500 in dividend income over 15 months.

      Delete
    2. Hi FerdiS,

      thanks for your detailed answer! One day I will start to write options or at least try it, because I like the idea very much.

      Cheers
      DivRider

      Delete
    3. You're welcome, DivRider -- all the best and happy investing!

      Delete
  6. I agree with other comments. It is easy to follow (and learn) more about options by reading your posts. Thanks DivGro!
    DFG

    ReplyDelete
    Replies
    1. Thanks, Dividend Family Guy -- I appreciate your support and kind words. Take care!

      Delete

Contact Form

Name

Email *

Message *

Follow by Email