Tuesday, June 5, 2018

Options Update: May 2018

Welcome to another edition of my monthly options updates!

I write monthly updates to keep track of options trades in my DivGro portfolio. While DivGro's focus is dividend growth investing, I trade options to boost my portfolio's overall income.

Specifically, I sell puts on stocks I'd like to own and covered calls on stocks I already own. Sometimes, I execute more speculative options trades, too, such as bull put spreads and other combo trades.

Each update serves as a status report on the open options and obligations I have. I also report new trades and provide a running tally of DivGro's options income to date.

Before getting into the trade details, let's do a quick recap.

Recap


One of my goals in 2018 is to secure at least $12,000 in options income, a challenging goal which represents an increase of about 43% over the amount I secured in 2017.

I consider options income secured if I no longer have any obligations to fulfill. Specifically, if I close an option or if an option expires, I no longer have an obligation to fulfill. Similarly, if an option is assigned, my obligation "expires" at assignment.

Increased market volatility in 2018 has created some challenges (along with opportunities). I executed some defensive trades in the last few months, which cost me some of my previously secured options income. Also, I've started experimenting with options spreads, which also "cost" me some of my previously secured options income.

The bottom line is that my secured options income is down significantly from where I started in January, so my goal of securing at least $12,000 in options income in 2018 seems very far away.

The following snapshot shows the trades I executed in May. You can see all my options trades on a new options page that automatically updates whenever I enter new trades.


Assigned Options


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

In May, one option I sold got assigned.

#1572018-03-14:-1×BUD 18 May 2018 $105.00 P $ 200.00 ( $  -0.79 )

Anheuser-Busch InBev (BUD) share price moved significantly lower after I sold the May $105 put contract, so the put was deep in the money when it got assigned.

This is the risk of selling puts. Sometimes the trade goes against you, and you end up buying shares at a price that's higher than the current market price. That's why I only sell puts on shares I wouldn't mind owning.

My cost basis for buying 100 shares of BUD is $105 − ($200 − $0.79)  ÷ 100 = $103.01 per share, and I added about $433.14 to DivGro's projected annual dividend income.

Expired Options


In May, the following options expired:

#1722018-04-06:-2×DIS 18 May 2018 $110.00 C $ 116.00 ( $ -1.38 )
#1712018-03-23:-3×XLRE 18 May 2018 $29.00 P $ 120.00 ( $ -0.18 )
#1702018-03-23:-2×APC 18 May 2018 $57.50 P $ 290.00 ( $ -0.99 )
#1692018-03-22:-3×PFE 18 May 2018 $34.00 P $ 141.00 ( $ -1.47 )
#1672018-03-14:-6×WEN 18 May 2018 $16.00 P $ 270.00 ( $ -0.25 )
#1662018-03-14:-2×STLD 18 May 2018 $46.00 P $ 410.00 ( $ -0.69 )
#1592018-03-14:-2×HOG 18 May 2018 $40.00 P $ 186.00 ( $ -0.98 )
#1512018-02-23:-2×SBUX 18 May 2018 $52.50 P $ 194.00 ( $ -0.98 )
#1472018-02-23:-2×EEM 18 May 2018 $46.00 P $ 156.00 ( $ -2.42 )
#1452018-02-23:-3×BAC 18 May 2018 $29.00 P $ 150.00 ( $ -1.47 )
#1442018-02-23:-2×AAPL 18 May 2018 $155.00 P $ 374.00 ( $ -2.43 )
#1292018-01-10:-2×FAST 18 May 2018 $50.00 P $ 350.00 ( $   0.00 )

I secured options income of $2,743.76 due to these expirations.

On 18 May, Disney (DIS) closed at $103.93 per share, 5.5% below the $110 strike price of the 18 May covered calls. The calls expired and I netted $114.62.

On 18 May, Real Estate Select Sector SPDR (XLRE) closed at $30.56 per share, 5.4% above $29 put strike price. The puts expired and I no longer have the obligation to buy 300 XLRE shares. I netted $119.82.

On 18 May, Anadarko Petroleum (APC) closed at $70.57 per share, 22.7% above the $57.40 put strike price. The puts expired and I no longer have the obligation to buy 200 APC shares. I netted $289.01.

On 18 May, Pfizer (PFE) closed at $35.64 per share, 4.8% above the $34 put strike price. The puts expired and I no longer have the obligation to buy 300 PFE shares. I netted $139.53.

On 18 May, Wendy's (WEN) closed at $16.25 per share, 1.6% above $16 put strike price. The puts expired and I no longer have the obligation to buy 600 WEN shares. I netted $269.75.

On 18 May, Steel Dynamics (STLD) closed at $50.86 per share, 10.6% above the $46 put strike price. The puts expired and I no longer have the obligation to buy 200 STLD shares. I netted $409.31.

On 18 May, Harley-Davidson (HOG) closed at $42.13 per share, 5.3% above the $40 put strike price. The puts expired and I no longer have the obligation to buy 200 HOG shares. I netted $185.02.

On 18 May, Starbucks (SBUX) closed at $57.16 per share, 8.9% above the $52.50 put strike price. The puts expired and I no longer have the obligation to buy 200 SBUX shares. I netted $193.02.

On 18 May, iShares MSCI Emerging Markets ETF (EEM) closed at $46.07 per share, 0.2% above the $46 put strike price. The puts expired and I no longer have the obligation to buy 200 EEM shares. I netted $153.58.

On 18 May, Bank of America (BAC) closed at $30.14 per share, 3.9% above $29 put strike price. The puts expired and I no longer have the obligation to buy 300 BAC shares. I netted $148.53.

On 18 May, Apple (AAPL) closed at $186.31 per share, 20% above the $155 put strike price. The puts expired and I no longer have the obligation to buy 200 AAPL shares. I netted $375.57.

On 18 May, Fastenal (FAST) closed at $52.76 per share, 5.5% above the $50 put strike price. The puts expired and I no longer have the obligation to buy 200 HOG shares. I netted $350.

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.

#1422018-02-16:-2×GILD 15 Jun 2018 $85.00 C $ 678.00 ( $      -11.15 )
#116b2017-10-20:-1×INTC 17 Jan 2020 $40.00 C $ 516.00 ( $ -1,691.18 )

On 11 May, Gilead Sciences (GILD) closed at $66.16 per share. The $85 June calls were deep in the money, so I decided to close them early. The trade netted $666.85.

Since September 2017, the share price of Intel (INTC) has rocketed higher by 61%. To protect my shares, I decided to buy back one of two $40 January 2020 calls for a net loss of $1,175.18.

I'm keeping the other $40 January 2020 call in place for the time-being. If the option gets assigned, I'll sell 100 INTC shares for $40 per share, well above my average cost basis of $27.75 per share.

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.

Here are the options I rolled forward in May:

#1842018-05-11:-1×WMT 21 Jun 2019 $82.50 P $     667.00 ( $        -0.64 )
#1732018-04-06:-1×WMT 18 May 2018 $87.50 P $     304.00 ( $    -508.25 )→ #184
#1832018-05-11:-1×VLO 17 Jan 2020 $90.00 C $  2,935.00 ( $        -0.69 )
#1222017-11-17:-1×VLO 18 Jan 2019 $80.00 C $     892.00 ( $ -3,535.26 )→ #183
#1822018-05-11:-1×PG 17 Jan 2020 $72.50 P $     633.00 ( $        -0.63 )
#1762018-04-20:-1×PG 18 Jan 2019 $77.50 P $     627.00 ( $    -672.25 )→ #182
#1812018-05-11:-1×MO 21 Jul 2019 $55.00 P $       579.0( $        -0.63 )
#1752018-04-20:-1×MO 20 Jul 2018 $60.00 P $     438.00 ( $    -505.25 )→ #181
#1802018-05-11:-3×GPS 21 Dec 2018 $29.00 P $     912.00 ( $        -1.45 )
#1682018-03-22:-3×GPS 18 May 2018 $31.00 P $     447.00 ( $    -551.90 )→ #180

On 11 May, Walmart (WMT) closed at $83.38 per share, so my $87.50 put option was deep in the money. I decided to roll forward the option to June 2019 and simultaneously to lower the strike price to $82.50. In the process, I netted $158.74.

On 11 May, Valero Energy (VLO) closed at $113.84 per share, so my $80 call option was deep in the money. I decided to roll forward the option to January 2020 and simultaneously to increase the strike price to $90. In the process, I lost $600.31 in options income. However, I'll be netting $1,000 more if my 100 VLO shares were to be called away.

On 11 May, Procter & Gamble (PG) closed at $73.37 per share, so my $77.50 put option was deep in the money. I decided to roll forward the option to January 2020 and simultaneously to lower the strike price to $72.50. In the process, I lost $39.26 in options income. However, I'll be netting $500 more if my 100 PG share were to be called away.

On 11 May, Altria (MO) closed at $55.19 per share, so my $60 put option was deep in the money. I decided to roll forward the option to July 2019 and simultaneously to lower the strike price to $55. In the process, I netted $73.75.

On 11 May, Gap (GPS) closed at $29.19 per share, so my $31 put options were deep in the money. I decided to roll forward these options to December 2018 and simultaneously to lower the strike price to $29. In the process, I netted $360.13.

New Covered Calls


Selling covered calls is a way to collect extra income on stocks you already own.

I didn't sell any covered calls in this period.

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 the following put contracts in this period:

#1882018-05-24:-2×WSM 17 Aug 2018 $47.50 P $ 240.00 ( $ -0.08 )
#1872018-05-24:-2×TJX 19 Oct 2018 $82.50 P $ 380.00 ( $ -0.08 )
#1862018-05-24:-2×TGT 20 Jul 2018 $67.50 P $ 224.00 ( $ -0.98 )
#1852018-05-24:-2×HSY 15 Jun 2018 $91.00 P $ 236.00 ( $ -0.74 )


#188 : 2018-05-24: Sold to Open 2 Contracts of Option WSM Aug 17 2018 47.50 P

I'm willing to buy 200 shares of Williams-Sonoma (WSM) for $47.50 per share on or before 17 August. WSM closed at $51.96 per share on the date of my trade:

Open Date :  2018-05-24
Expiration Date :  2018-08-17    Number of Days in Trade : 85
Price at Close :  $51.96 per shareDiscount at Strike Price : 8.58%
Strike Price :  $47.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.20 per shareOptions Income : $240.00
Commission : -$0.08
Net Premium :  $1.200 per shareNet Options Income : $239.92
Options Yield :  2.31%Annualized Options Yield : 9.92%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $46.30Discount if Exercised : 10.89%

This put option trade yields 2.31%, or 9.92% on an annualized basis. At $51.96 per share, WSM yields 3.31%, so I'm boosting dividend income by a factor of 3.00. If the options are exercised, I'll buy 200 shares at a cost basis of $46.30 per share, a discount of 10.89%.


#187 : 2018-05-24: Sold to Open 2 Contracts of Option TJX Oct 19 2018 82.50 P

I'm willing to buy 200 shares of TJX (TJX) for $82.50 per share on or before 19 October. TJX closed at $88.74 per share on the date of my trade:

Open Date :  2018-05-24
Expiration Date :  2018-10-19    Number of Days in Trade : 148
Price at Close :  $88.74 per shareDiscount at Strike Price : 7.03%
Strike Price :  $82.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.90 per shareOptions Income : $380.00
Commission : -$0.08
Net Premium :  $1.900 per shareNet Options Income : $379.92
Options Yield :  2.14%Annualized Options Yield : 5.28%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $80.60Discount if Exercised : 9.17%

This put option trade yields 2.14%, or 5.28% on an annualized basis. At $88.74 per share, TJX yields 1.76%, so I'm boosting dividend income by a factor of 3.01. If the options are exercised, I'll buy 200 shares at a cost basis of $80.60 per share, a discount of 9.17%.


#186 : 2018-05-24: Sold to Open 2 Contracts of Option TGT Jul 20 2018 67.50 P

I'm willing to buy 200 shares of Target (TGT) for $67.50 per share on or before 20 July. TGT closed at $70.94 per share on the date of my trade:

Open Date :  2018-05-24
Expiration Date :  2018-07-20    Number of Days in Trade : 57
Price at Close :  $70.94 per shareDiscount at Strike Price : 4.85%
Strike Price :  $67.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.12 per shareOptions Income : $224.00
Commission : -$0.98
Net Premium :  $1.115 per shareNet Options Income : $223.02
Options Yield :  1.57%Annualized Options Yield : 10.07%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $66.38Discount if Exercised : 6.43%

This put option trade yields 1.57%, or 10.07% on an annualized basis. At $70.94 per share, TGT yields 3.50%, so I'm boosting dividend income by a factor of 2.88. If the options are exercised, I'll buy 200 shares at a cost basis of $66.38 per share, a discount of 6.43%.


#185 : 2018-05-24: Sold to Open 2 Contracts of Option HSY Jun 15 2018 91.00 P

I'm willing to buy 200 shares of Hershey (HSY) for $91.00 per share on or before 15 June. HSY closed at $91.67 per share on the date of my trade:

Open Date :  2018-05-24
Expiration Date :  2018-06-15    Number of Days in Trade : 22
Price at Close :  $91.67 per shareDiscount at Strike Price : 0.73%
Strike Price :  $91.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.18 per shareOptions Income : $236.00
Commission : -$0.74
Net Premium :  $1.176 per shareNet Options Income : $235.26
Options Yield :  1.28%Annualized Options Yield : 21.30%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $89.82Discount if Exercised : 2.02%

This put option trade yields 1.28%, or 21.30% on an annualized basis. At $91.67 per share, HSY yields 2.86%, so I'm boosting dividend income by a factor of 7.44. If the options are exercised, I'll buy 200 shares at a cost basis of $89.82 per share, a discount of 2.02%.


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%.

The WSM options trade qualifies with a discount of 10.89% and the HSY options trade qualifies with a boost factor of 7.44. The other two do not quite qualify.

A Spread Trade


In May, I executed another trade based on a recommendation of one of my advanced options trading advisories.

The trade delivers 28% up front on margin and has a chance of returning 100% or more (on margin) over the next two years. Here is the trade:

#1792018-05-11:-2×DIS 17 Jan 2020 $100.00 P $ 1,845.00 ( $     -1.15 )
#1782018-05-11:  2×DIS 17 Jan 2020 $130.00 C $        0.00 ( $ -712.11 )


Disney (DIS) is a diversified international family entertainment company based in Burbank, California. Founded on October 16, 1923, by Walt Disney and Roy O. Disney, the company established itself as a leading animation studio before diversifying into other entertainment-related segments. Today, DIS operates in four segments: Media Networks, Parks & Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

Disney has a bright future. The company has box-office momentum, and its theme parks will benefit from movie blockbusters churned out by Lucasfilm, Marvel, and Pixar.

Disney is attempting to buy 21st Century Fox (FOX) for more than $50 billion. If this bid is successful, Disney would get exceptional assets including Fox's movie studio, cable channels, and TV show rights, along with 30% of streaming service Hulu. Disney already owns 30%, so the company will have a controlling stake in Hulu.

Here are the possible outcomes of the trade:
  1. DIS trades for less than $100 per share. The $130 calls expire worthless. The $100 puts are in the money and would be exercised, meaning I'll buy DIS for $100 per share. When accounting for the net credit of $5.66 per share, my cost basis would be $94.34 per share. 
  2. DIS trades between $100 and $130 per share. In this case, both options will expire worthless, and I would keep the $5.66 per share premium, or $566, which is a 28% return on margin in about 20 months. 
  3. DIS trades for more than $130 per share. This outcome is the best case scenario. The higher DIS goes above $130 per share, the higher my returns will be. For example, if DIS rises to $145 per share, the calls would be worth $15 per share, or $20.66 per share when adding the net options premium. That's a return of 103% on margin.


Options Expiring Soon


I look forward to expiring options, hopefully allowing me to secure more options income. Of course, for in the money options, I have decisions to make before the expiration date.

The following options expire in the next two months:

June:
#1852018-05-24:-2×HSY 15 Jun 2018 $91.00 P $ 236.00 ( $ -0.74 ) → At the money 
#1642018-03-14:-3×PFE 15 Jun 2018 $34.00 P $ 150.00 ( $ -1.47 )→ Out of the money with an  7% safety margin 
#1482018-02-23:-2×HRL 15 Jun 2018 $32.50 P $ 304.00 ( $ -0.01 )→ Out of the money with a  11% safety margin 


July:
#1862018-05-24:-2×TGT 20 Jul 2018 $67.50 P $ 224.00 ( $ -0.98 )→ Out of the money with a  16% safety margin 
#1432018-02-16:-3×NKE 20 Jul 2018 $60.00 P $ 441.00 ( $ -2.38 )→ Out of the money with a  23% safety margin 

One option is at the money. I'll have to monitor this option carefully as the expiration date approaches.


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:

IDDATE:NO×TICKER OPTIONINCOME( EXPENSES )ROLLEDTOTAL➤ SECURED
#1882018-05-24:-2×WSM 17 Aug 2018 $47.50 P $       240.00 ( $          -0.08 )$    29,051.92 ➤ $      2,592.92 
#1872018-05-24:-2×TJX 19 Oct 2018 $82.50 P $       380.00 ( $          -0.08 )$    28,812.00 ➤ $      2,593.00 
#1862018-05-24:-2×TGT 20 Jul 2018 $67.50 P $       224.00 ( $          -0.98 )$    28,432.08 ➤ $      2,593.08 
#1852018-05-24:-2×HSY 15 Jun 2018 $91.00 P $       236.00 ( $          -0.74 )$    28,209.06 ➤ $      2,594.06 
#1842018-05-11:-1×WMT 21 Jun 2019 $82.50 P $       667.00 ( $          -0.64 )$    27,973.80 ➤ $      2,594.80 
#1832018-05-11:-1×VLO 17 Jan 2020 $90.00 C $    2,935.00 ( $          -0.69 )$    27,307.44 ➤ $      2,595.44 
#1822018-05-11:-1×PG 17 Jan 2020 $72.50 P $       633.00 ( $          -0.63 )$    24,373.13 ➤ $      2,596.13 
#1812018-05-11:-1×MO 21 Jul 2019 $55.00 P $       579.00 ( $          -0.63 )$    23,740.76 ➤ $      2,596.76 
#1802018-05-11:-3×GPS 21 Dec 2018 $29.00 P $       912.00 ( $          -1.45 )$    23,162.39 ➤ $      2,597.39 
#1792018-05-11:-2×DIS 17 Jan 2020 $100.00 P $    1,845.00 ( $          -1.15 )$    22,251.84 ➤ $      2,598.84 
#1782018-05-11:  2×DIS 17 Jan 2020 $130.00 C $           0.00 ( $      -712.11 )$    20,407.99 ➤ $      2,599.99 
#1772018-04-20:-3×GLW 18 Jan 2019 $27.00 P $       618.00 ( $          -0.97 )$    21,120.10 ➤ $      3,312.10 
#1762018-04-20:-1×PG 18 Jan 2019 $77.50 P $       627.00 ( $      -672.25 )→ #182$    20,503.07 ➤ $      3,313.07 
#1752018-04-20:-1×MO 20 Jul 2018 $60.00 P $       438.00 ( $      -505.25 )→ #181$    20,548.32 ➤ $      3,358.32 
#1742018-04-20:-3×KBH 18 Jan 2019 $30.00 P $    1,494.00 ( $          -1.46 )$    20,615.57 ➤ $      3,425.57 
#1732018-04-06:-1×WMT 18 May 2018 $87.50 P $       304.00 ( $      -508.25 )→ #184$    19,123.03 ➤ $      3,427.03 
#1722018-04-06:-2×DIS 18 May 2018 $110.00 C $       116.00 ( $          -1.38 )$    19,327.28 ➤ $      3,631.28 
#1712018-03-23:-3×XLRE 18 May 2018 $29.00 P $       120.00 ( $          -0.18 )$    19,212.66 ➤ $      3,516.66 
#1702018-03-23:-2×APC 18 May 2018 $57.50 P $       290.00 ( $          -0.99 )$    19,092.84 ➤ $      3,396.84 
#1692018-03-22:-3×PFE 18 May 2018 $34.00 P $       141.00 ( $          -1.47 )$    18,803.83 ➤ $      3,107.83 
#1682018-03-22:-3×GPS 18 May 2018 $31.00 P $       447.00 ( $      -551.90 )→ #180$    18,664.30 ➤ $      2,968.30 
#1672018-03-14:-6×WEN 18 May 2018 $16.00 P $       270.00 ( $          -0.25 )$    18,769.20 ➤ $      3,073.20 
#1662018-03-14:-2×STLD 18 May 2018 $46.00 P $       410.00 ( $          -0.69 )$    18,499.45 ➤ $      2,803.45 
#1652018-03-14:-1×RS 20 Apr 2018 $87.50 P $       170.00 ( $          -0.34 )$    18,090.14 ➤ $      2,394.14 
#1642018-03-14:-3×PFE 15 Jun 2018 $34.00 P $       150.00 ( $          -1.47 )$    17,920.48 ➤ $      2,224.48 
#1632018-03-14:10×NEE 20 Apr 2018 $150.00 P $           0.00 ( $   -1,055.63 )$    17,771.95 ➤ $      2,225.95 
#1622018-03-14:-10×NEE 20 Apr 2018 $155.00 P $    2,153.00 ( $          -5.70 )$    18,827.58 ➤ $      3,281.58 
#1612018-03-14:-2×KMB 17 Jan 2020 $100.00 P $    1,503.00 ( $          -0.11 )$    16,680.28 ➤ $      1,134.28 
#1602018-03-14:  2×KMB 17 Jan 2020 $135.00 C $           0.00 ( $      -783.14 )$    15,177.39 ➤ $      1,134.39 
#1592018-03-14:-2×HOG 18 May 2018 $40.00 P $       186.00 ( $          -0.98 )$    15,960.53 ➤ $      1,917.53 
#1582018-03-14:-3×GLW 20 Apr 2018 $29.00 P $       141.00 ( $      -465.32 )→ #177$    15,775.51 ➤ $      1,732.51 
#1572018-03-14:-1×BUD 18 May 2018 $105.00 P $       200.00 ( $          -0.79 )$    16,099.83 ➤ $      2,056.83 
#1562018-02-26:-2×ABBV 17 Jan 2020 $100.00 C $    5,508.00 ( $          -1.24 )$    15,900.62 ➤ $      1,857.62 
#1552018-02-26:-1×WMT 06 Apr 2018 $90.00 P $       130.00 ( $      -221.61 )→ #173$    10,393.86 ➤ $      1,858.86 
#1542018-02-26:-1×LOW 20 Apr 2018 $92.50 P $       196.00 ( $          -0.79 )$    10,485.47 ➤ $      1,950.47 
#1532018-02-26:  5×HD 20 Apr 2018 $185.00 P $           0.00 ( $   -4,827.70 )$    10,290.26 ➤ $      1,755.26 
#1522018-02-26:-5×HD 20 Apr 2018 $190.00 P $    3,450.00 ( $          -2.79 )$    15,117.96 ➤ $      6,582.96 
#1512018-02-23:-2×SBUX 18 May 2018 $52.50 P $       194.00 ( $          -0.98 )$    11,670.75 ➤ $      3,135.75 
#1502018-02-23:-1×PG 20 Apr 2018 $80.00 P $       171.00 ( $      -562.41 )→ #176$    11,477.73 ➤ $      2,942.73 
#149b2018-02-23:-1×MO 20 Apr 2018 $60.00 P $         72.00 ( $      -267.16 )→ #175$    11,869.14 ➤ $      3,334.14 
#149a2018-02-23:-1×MO 20 Apr 2018 $60.00 P $         72.00 ( $          -0.54 )$    12,064.30 ➤ $      3,529.30 
#1482018-02-23:-2×HRL 15 Jun 2018 $32.50 P $       304.00 ( $          -0.01 )$    11,992.84 ➤ $      3,457.84 
#1472018-02-23:-2×EEM 18 May 2018 $46.00 P $       156.00 ( $          -2.42 )$    11,688.85 ➤ $      3,457.85 
#1462018-02-23:-2×DIS 06 Apr 2018 $112.00 C $       142.00 ( $          -0.74 )$    11,535.27 ➤ $      3,304.27 
#1452018-02-23:-3×BAC 18 May 2018 $29.00 P $       150.00 ( $          -1.47 )$    11,394.01 ➤ $      3,163.01 
#1442018-02-23:-2×AAPL 18 May 2018 $155.00 P $       374.00 ( $          -2.43 )$    11,245.48 ➤ $      3,014.48 
#1432018-02-16:-3×NKE 20 Jul 2018 $60.00 P $       441.00 ( $          -2.38 )$    10,873.91 ➤ $      2,642.91 
#1422018-02-16:-2×GILD 15 Jun 2018 $85.00 C $       678.00 ( $        -11.15 )$    10,435.29 ➤ $      2,645.29 
#1412018-01-12:  6×WYNN 16 Mar 2018 $155.00 P $           0.00 ( $   -2,708.04 )$      9,768.44 ➤ $      1,978.44 
#1402018-01-12:-6×WYNN 16 Mar 2018 $160.00 P $    3,791.00 ( $          -3.14 )$    12,476.48 ➤ $      4,686.48 
#1392018-01-12:  6×RL 20 Apr 2018 $100.00 P $           0.00 ( $   -2,427.25 )$      8,688.62 ➤ $         898.62 
#1382018-01-12:-6×RL 20 Apr 2018 $105.00 P $    3,566.00 ( $          -3.34 )$    11,115.87 ➤ $      3,325.87 
#1372018-01-12:  8×JPM 16 Mar 2018 $105.00 P $           0.00 ( $      -842.23 )$      7,553.21 ➤ $       -236.79 
#1362018-01-12:-8×JPM 16 Mar 2018 $110.00 P $    1,864.00 ( $        -10.29 )$      8,395.44 ➤ $         605.44 
#1352018-01-12:-3×KSS 16 Mar 2018 $55.00 P $       405.00 ( $          -0.14 )$      6,541.73 ➤ $    -1,248.27 
#1342018-01-10:-4×QCOM 17 Jan 2020 $65.00 C $    3,140.00 ( $          -2.05 )$      6,136.87 ➤ $    -1,653.13 
#1332018-01-10:-20×F 17 Jan 2020 $12.00 C $    3,720.00 ( $        -15.96 )$      2,998.92 ➤ $    -1,651.08 
#1322018-01-10:-2×KO 18 Jan 2019 $47.00 C $       414.00 ( $          -2.58 )$        -705.12 ➤ $     -1,635.12 
#1312018-01-10:-3×TGT 16 Mar 2018 $60.00 P $       144.00 ( $          -1.48 )$     -1,116.54 ➤ $     -1,632.54 
#1302018-01-10:-3×KBH 20 Apr 2018 $31.00 P $       306.00 ( $   -1,283.91 )→ #174$     -1,259.06 ➤ $     -1,775.06 
#1292018-01-10:-2×FAST 18 May 2018 $50.00 P $       350.00 ( $            0.00 )$        -281.15 ➤ $        -797.15 
#1282018-01-10:-1×AXP 20 Apr 2018 $100.00 P $       330.00 ( $          -0.80 )$        -631.15 ➤ $     -1,147.15 
#1272017-11-30:-2×EEM 19 Jan 2018 $46.00 P $       234.00 ( $          -0.85 )$        -960.35 ➤ $     -1,476.35 
#1262017-11-30:-2×BBT 16 Mar 2018 $50.00 P $       130.00 ( $          -0.98 )$     -1,193.50 ➤ $     -1,709.50 
#1252017-11-21:-3×X 19 Jan 2018 $26.00 P $       252.00 ( $          -2.09 )$     -1,322.52 ➤ $     -1,838.52 
#1242017-11-21:-2×RL 19 Jan 2018 $80.00 P $       150.00 ( $          -0.09 )$     -1,572.43 ➤ $     -2,088.43 
#1232017-11-21:-3×BAC 19 Jan 2018 $25.00 P $       120.00 ( $          -2.23 )$     -1,722.34 ➤ $     -2,238.34 
#1222017-11-17:-1×VLO 18 Jan 2019 $80.00 C $       892.00 ( $   -3,535.26 )→ #183$     -1,840.11 ➤ $     -2,356.11 
#1212017-11-17:-3×NKE 20 Apr 2018 $50.00 P $       208.00 ( $        -31.15 )→ #143$         803.15 ➤ $         287.15 
#1202017-11-17:-2×AAPL 16 Feb 2018 $150.00 P $       376.00 ( $          -1.60 )$         626.30 ➤ $         110.30 
#1192017-11-17:-2×WBA 15 Dec 2017 $70.00 P $       244.00 ( $          -0.99 )$         251.90 ➤ $       -264.10 
#1182017-11-17:-2×TXN 16 Mar 2018 $85.00 P $       200.00 ( $          -0.99 )$             8.89 ➤ $       -507.11 
#1172017-11-17:-2×MO 19 Jan 2018 $62.50 P $       140.00 ( $          -0.99 )$        -190.12 ➤ $        -706.12 
#116b2017-10-20:-1×INTC 17 Jan 2020 $40.00 C $       516.00 ( $   -1,691.18 )$        -329.13 ➤ $        -845.13 
#116a2017-10-20:-1×INTC 17 Jan 2020 $40.00 C $       516.00 ( $          -0.51 )$         846.04 ➤ $         330.04 

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:
$ 29,052$     2,593
Last Month:
$ 28,590$     3,923
Difference:
$      462$    -1,330

I started 2018 with $11,420 in secured options income. Adding my 2018 goal of $12,000 in secured options income makes the target $23,420.

More defensive trades this month has cost me some of my secured income. The road ahead is steep, as I'll have to secure $20,827 in the remaining months of 2018 to achieve my secured options income goal for 2018!

On the other hand, I added a small amount to total options income this month! There's always something to be thankful for!

Thanks for reading and take care, everybody!

6 comments :

  1. Hi Ferdi,

    that's an exhaustive monthly report for your options income only. My strategy is somewhat different. I mostly sell options when volatility is high without intention of any assignment. There are so many choices.

    Your secured options income is not available in the monthly performance sheet, or am I wrong?

    https://divgro.blogspot.com/p/performance.html

    So far, for the coming community report I am using options income received instead.

    Dividend report tomorrow? ;)

    Cheers!

    ReplyDelete
    Replies
    1. Hi Torsten -- thanks for your comment and I'm looking forward to seeing your community report.

      I don't show secured options income in my monthly performance sheet, only options income received. So, once I complete my monthly report, you should see it there. Alternatively, look at the options history page I sent you previously. Both amounts are listed for every month end.

      The reason I don't have my monthly report yet is that I'm waiting for FolioInvesting to finish their monthly reports. I can't access one of my accounts at FolioInvesting anymore because it is restricted after I transferred it to Interactive Brokers. There are some dividends I received that I don't have details of.

      Delete
    2. Hi Ferdi,

      thanks for the info. I will stick with options income first. I may switch later if all secured options income is available in one place. Otherwise it takes me so long. You really have a ton of data available about your porftolio. Even more than me I guess :)

      Delete
    3. Hi Ferdi,

      the community report is live. You can find it here:

      https://dividendstocks.cash/blog/income-heroes

      Wish you the best,

      Torsten

      Delete
  2. Gogogogogogo!

    I am currently in the process of paring back my options exposure. I made great income in the first 5 months but I'm feeling a little squeamish with the yield on the 10 year Treasury hovering around 3%.

    ReplyDelete
    Replies
    1. Thanks, Financial Velociraptor --

      I've had a challenging start to the year and I'm hoping to make up during the rest of the year. I'll probably slow down on the put selling as I think the market is getting a bit toppy again.

      Delete

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