DivGro's focus is dividend growth investing and most of the articles I post here relate to how I manage my portfolio using the strategy of dividend growth investing.In June 2016, I added options trading to leverage the equity in my portfolio and to generate more income. Through monthly options update articles, I report on my options trades and I keep track of the options income this activity generates.
Options trading generates extra income, which allows me to buy more dividend growth stocks than otherwise would have been possible.
I mostly sell puts on stocks I would 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.
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).
Because I started 2018 with secured options income of $11,420, my target for year's end is $23,420.
Reaching that target increasingly seems unlikely.
The following snapshot shows the trades I executed in August. 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.
No options got assigned this month.
Expired Options
In August, the following options expired:
| #213 | 2018-07-18 | : | -1 | × | HSY 24 Aug 2018 $91.00 P | $ 229.00 | ( $ -0.62 ) |
I secured options income of $228.38 due to this expiration.
On 24 August, Hershey (HSY) closed at $99.77 per share, well above the $91 strike price of my August put strike price. The put expired and I no longer have the obligation to buy 100 HSY shares.
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.
I closed three options early:
On 10 August, Corning (GWL) closed at $32.57, some 21% above the January 2019, $27 put strike price. With most of the options income secured, I decided to close the put early and secured $617.03 in options income.
Also on 10 August, American Eagle Outfitters (AEO) closed at $27.42, about 14% above the August $24 put strike price. With most of the options income secured, I decided to close the put early and secured $170.83 in options income.
Finally, on 27 August, I decided to close my position in Royal Dutch Shell (RDS.B). Consequently, I also had to close my covered call early. Fortunately, I netted $84.33 despite closing the call early.
I closed three options early:
| #200 | 2018-06-14 | : | -1 | × | RDS.B 18 Jan 2019 $80.00 C | $ 115.00 | ( $ -30.67 ) | |||
| #189 | 2018-06-12 | : | -2 | × | AEO 17 Aug 2018 $24.00 P | $ 180.00 | ( $ -9.17 ) | |||
| #177 | 2018-04-20 | : | -3 | × | GLW 18 Jan 2019 $27.00 P | $ 618.00 | ( $ -0.97 ) |
On 10 August, Corning (GWL) closed at $32.57, some 21% above the January 2019, $27 put strike price. With most of the options income secured, I decided to close the put early and secured $617.03 in options income.
Also on 10 August, American Eagle Outfitters (AEO) closed at $27.42, about 14% above the August $24 put strike price. With most of the options income secured, I decided to close the put early and secured $170.83 in options income.
Finally, on 27 August, I decided to close my position in Royal Dutch Shell (RDS.B). Consequently, I also had to close my covered call early. Fortunately, I netted $84.33 despite closing the call early.
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, or to collect more options income for out of the money options.
Here are the options I rolled forward in August:
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On 17 August, Comcast (CMCSA) closed at $35.60 per share, so my $35 call option was in the money. I decided to roll forward the option to November and simultaneously to increase the strike price to $37.50. In the process, I added $78.60 in secured options income and $180.18 to my options income tally.
On 28 August, Nike (NKE) closed at $82.38 per share, so my $65 put options were deep out of the money. I decided to increase the put strike price to $75. In the process, I secured $232.82 in options income and added $179.17 to my options income tally.
Target (TGT) closed at $86.79 on 28 August, about 24% above the $70 put strike price. With the put options deep out of the money, I decided to increase the put strike price to $80. In the process, I secured $2334.57 in options income and added $122.18 to my options income tally.
On 28 August, TJX Companies (TJX) closed at $107.61, so my $105 call option was in the money. I decided to roll forward the option to April 2019 and simultaneously to increase the strike price to $110. The trade cost me $308.62 in secured options income, but I added $571.71 to my options income tally.
Also on 28 August, my October, TJX $82.50 put options were deep out of the money, so I decided to roll forward the options to April 2019 and simultaneously to increase the put strike price to $100. With this trade, I secured $362.72 in options income and added $497.39 to my options income tally.
New Covered Calls
Selling covered calls is a way to collect extra income on stocks you already own.
| #226 | 2018-08-28 | : | -10 | × | F 18 Jan 2019 $11.00 C | $ 216.00 | ( $ -12.77 ) | |||
| #224 | 2018-08-10 | : | -10 | × | F 18 Jan 2019 $11.00 C | $ 210.00 | ( $ -4.87 ) |
#224 : 2018-08-10: Sold to Open 10 Contracts of Option F Jan 18 2019 11.00 C
I own 1000 shares of Ford Motor (F) at a cost basis of $12.06 per share. I'm willing to sell these shares for $11.00 on or before 18 January:
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This covered call yields 1.70%, or 3.86% on an annualized basis. The yield on cost of my F position is 4.98%, so I'm boosting dividend income by a factor of 0.78. If the options are exercised, I'll sell 1000 shares of F at a reduced cost basis of $11.85 per share, for a capital loss of 7.13%.
#226 : 2018-08-28: Sold to Open 10 Contracts of Option F Jan 18 2019 11.00 C
I own 1000 shares of Ford Motor (F) at a cost basis of $12.06 per share. I'm willing to sell these shares for $11.00 on or before 18 January:
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This covered call yields 1.69%, or 4.30% on an annualized basis. The yield on cost of my F position is 4.98%, so I'm boosting dividend income by a factor of 0.87. If the options are exercised, I'll sell 1000 shares of F at a reduced cost basis of $11.83 per share, for capital gains of -7.03%.
For covered calls, I think an achievable goal is to earn double the dividend yield. The F covered call fails to double the stock's dividend yield.
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!
| #223 | 2018-08-06 | : | -1 | × | UNP 19 Oct 2018 $140.00 P | $ 172.00 | ( $ -1.59 ) | |||
| #222 | 2018-08-06 | : | -1 | × | HON 21 Sep 2018 $145.00 P | $ 75.00 | ( $ -1.09 ) | |||
| #221 | 2018-08-06 | : | -1 | × | HD 21 Sep 2018 $185.00 P | $ 177.00 | ( $ -0.79 ) | |||
| #220 | 2018-08-06 | : | -1 | × | CVS 21 Sep 2018 $65.00 P | $ 222.00 | ( $ -0.84 ) | |||
| #219 | 2018-08-06 | : | -2 | × | CSCO 19 Oct 2018 $40.00 P | $ 124.00 | ( $ -2.57 ) | |||
| #218 | 2018-08-06 | : | -2 | × | BBY 21 Sep 2018 $70.00 P | $ 324.00 | ( $ -0.98 ) | |||
| #217 | 2018-08-06 | : | -2 | × | ADM 21 Dec 2018 $45.00 P | $ 124.00 | ( $ -0.73 ) |
#217 : 2018-08-06: Sold to Open 2 Contracts of Option ADM Dec 21 2018 45.00 P
I'm willing to buy 200 shares of Archer-Daniels-Midland (ADM) for $45.00 per share on or before 21 December. ADM closed at $49.72 per share on the date of my trade:
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This put option trade yields 1.24%, or 3.30% on an annualized basis. At $49.72 per share, ADM yields 2.70%, so I'm boosting dividend income by a factor of 1.23. If the options are exercised, I'll buy 200 shares at a cost basis of $44.38 per share, a discount of 10.75%.
#218 : 2018-08-06: Sold to Open 2 Contracts of Option BBY Sep 21 2018 70.00 P
I'm willing to buy 200 shares of Best Buy (BBY) for $70.00 per share on or before 21 September. BBY closed at $76.42 per share on the date of my trade:
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This put option trade yields 2.11%, or 16.78% on an annualized basis. At $76.42 per share, BBY yields 2.36%, so I'm boosting dividend income by a factor of 7.12. If the options are exercised, I'll buy 200 shares at a cost basis of $68.38 per share, a discount of 10.53%.
#219 : 2018-08-06: Sold to Open 2 Contracts of Option CSCO Oct 19 2018 40.00 P
I'm willing to buy 200 shares of Cisco Systems (CSCO) for $40.00 per share on or before 19 October. CSCO closed at $43.30 per share on the date of my trade:
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This put option trade yields 1.40%, or 6.92% on an annualized basis. At $43.30 per share, CSCO yields 3.05%, so I'm boosting dividend income by a factor of 2.27. If the options are exercised, I'll buy 200 shares at a cost basis of $39.37 per share, a discount of 9.08%.
#220 : 2018-08-06: Sold to Open 1 Contract of Option CVS Sep 21 2018 65.00 P
I'm willing to buy 100 shares of CVS Health (CVS) for $65.00 per share on or before 21 September. CVS closed at $65.04 per share on the date of my trade:
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This put option trade yields 3.40%, or 27.00% on an annualized basis. At $65.04 per share, CVS yields 3.08%, so I'm boosting dividend income by a factor of 8.78. If the option is exercised, I'll buy 100 shares at a cost basis of $62.77 per share, a discount of 3.49%.
#221 : 2018-08-06: Sold to Open 1 Contract of Option HD Sep 21 2018 185.00 P
I'm willing to buy 100 shares of Home Depot (HD) for $185.00 per share on or before 21 September. HD closed at $194.69 per share on the date of my trade:
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This put option trade yields 0.91%, or 7.19% on an annualized basis. At $194.69 per share, HD yields 2.12%, so I'm boosting dividend income by a factor of 3.40. If the option is exercised, I'll buy 100 shares at a cost basis of $183.22 per share, a discount of 5.89%.
#222 : 2018-08-06: Sold to Open 1 Contract of Option HON Sep 21 2018 145.00 P
I'm willing to buy 100 shares of Honeywell International (HON) for $145.00 per share on or before 21 September. HON closed at $155.60 per share on the date of my trade:
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This put option trade yields 0.48%, or 3.77% on an annualized basis. At $155.60 per share, HON yields 1.92%, so I'm boosting dividend income by a factor of 1.97. If the option is exercised, I'll buy 100 shares at a cost basis of $144.24 per share, a discount of 7.30%.
#223 : 2018-08-06: Sold to Open 1 Contract of Option UNP Oct 19 2018 140.00 P
I'm willing to buy 100 shares of Union Pacific (UNP) for $140.00 per share on or before 19 October. UNP closed at $148.32 per share on the date of my trade:
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This put option trade yields 1.15%, or 5.67% on an annualized basis. At $148.32 per share, UNP yields 1.97%, so I'm boosting dividend income by a factor of 2.88. If the option is exercised, I'll buy 100 shares at a cost basis of $138.26 per share, a discount of 6.78%.
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 put options trades on ADM, BBY, and CVS match my standard, but those on CSCA, HD, HON, and UNP do not.
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:
September:
| #222 | 2018-08-06 | : | -1 | × | HON 21 Sep 2018 $145.00 P | $ 75.00 | ( $ -1.09 ) | → Out of the money with a 10% safety margin | ||
| #221 | 2018-08-06 | : | -1 | × | HD 21 Sep 2018 $185.00 P | $ 177.00 | ( $ -0.79 ) | → Out of the money with an 9% safety margin | ||
| #220 | 2018-08-06 | : | -1 | × | CVS 21 Sep 2018 $65.00 P | $ 222.00 | ( $ -0.84 ) | → Out of the money with a 16% safety margin | ||
| #218 | 2018-08-06 | : | -2 | × | BBY 21 Sep 2018 $70.00 P | $ 324.00 | ( $ -0.98 ) | → Out of the money with a 14% safety margin | ||
| #216 | 2018-07-30 | : | -1 | × | MGM 21 Sep 2018 $31.00 P | $ 144.00 | ( $ -0.79 ) | → In the money by 6% — caution! | ||
| #215 | 2018-07-26 | : | -1 | × | MKC 21 Sep 2018 $115.00 P | $ 353.00 | ( $ -0.12 ) | → Out of the money with an 9% safety margin |
October:
| #228 | 2018-08-28 | : | -2 | × | TGT 19 Oct 2018 $80.00 P | $ 123.00 | ( $ -0.82 ) | → Out of the money with an 9% safety margin | ||
| #227 | 2018-08-28 | : | -3 | × | NKE 19 Oct 2018 $75.00 P | $ 183.00 | ( $ -3.83 ) | → Out of the money with a 10% safety margin | ||
| #223 | 2018-08-06 | : | -1 | × | UNP 19 Oct 2018 $140.00 P | $ 172.00 | ( $ -1.59 ) | → Out of the money with an 8% safety margin | ||
| #219 | 2018-08-06 | : | -2 | × | CSCO 19 Oct 2018 $40.00 P | $ 124.00 | ( $ -2.57 ) | → Out of the money with a 19% safety margin | ||
| #205 | 2018-06-14 | : | -2 | × | WBA 19 Oct 2018 $70.00 C | $ 288.00 | ( $ -0.98 ) | → Out of the money with an 2% safety margin | ||
| #203 | 2018-06-14 | : | -1 | × | TRV 19 Oct 2018 $140.00 C | $ 124.00 | ( $ -1.09 ) | → Out of the money with an 6% safety margin | ||
| #201 | 2018-06-14 | : | -1 | × | T 19 Oct 2018 $36.00 C | $ 94.00 | ( $ -1.58 ) | → Out of the money with a 11% safety margin | ||
| #199 | 2018-06-14 | : | -2 | × | PG 19 Oct 2018 $85.00 C | $ 74.00 | ( $ -0.98 ) | → Out of the money with an 2% safety margin | ||
| #195 | 2018-06-14 | : | -2 | × | DIS 19 Oct 2018 $125.00 C | $ 116.00 | ( $ -1.58 ) | → Out of the money with a 10% safety margin |
One option is in the money. I'll have to monitor it carefully as the options 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:
key: expired • closed • rolled • assigned • open
| ID | DATE | : | NO | × | TICKER OPTION | INCOME | ( EXPENSES ) | ROLLED | TOTAL | ➤ SECURED |
| #230 | 2018-08-28 | : | -2 | × | TJX 18 Apr 2019 $100.00 P | $ 499.00 | ( $ -1.61 ) | $ 36,198.60 | ➤ $ 8,649.60 | |
| #229 | 2018-08-28 | : | -1 | × | TJX 18 Apr 2019 $110.00 C | $ 572.00 | ( $ -0.29 ) | $ 35,701.21 | ➤ $ 8,651.21 | |
| #228 | 2018-08-28 | : | -2 | × | TGT 19 Oct 2018 $80.00 P | $ 123.00 | ( $ -0.82 ) | $ 35,129.50 | ➤ $ 8,651.50 | |
| #227 | 2018-08-28 | : | -3 | × | NKE 19 Oct 2018 $75.00 P | $ 183.00 | ( $ -3.83 ) | $ 35,007.32 | ➤ $ 8,652.32 | |
| #226 | 2018-08-28 | : | -10 | × | F 18 Jan 2019 $11.00 C | $ 216.00 | ( $ -12.77 ) | $ 34,828.15 | ➤ $ 8,656.15 | |
| #225 | 2018-08-17 | : | -2 | × | CMCSA 16 Nov 2018 $37.50 C | $ 181.00 | ( $ -0.82 ) | $ 34,624.92 | ➤ $ 8,668.92 | |
| #224 | 2018-08-10 | : | -10 | × | F 18 Jan 2019 $11.00 C | $ 210.00 | ( $ -4.87 ) | $ 34,444.74 | ➤ $ 8,669.74 | |
| #223 | 2018-08-06 | : | -1 | × | UNP 19 Oct 2018 $140.00 P | $ 172.00 | ( $ -1.59 ) | $ 34,239.61 | ➤ $ 8,674.61 | |
| #222 | 2018-08-06 | : | -1 | × | HON 21 Sep 2018 $145.00 P | $ 75.00 | ( $ -1.09 ) | $ 34,069.20 | ➤ $ 8,676.20 | |
| #221 | 2018-08-06 | : | -1 | × | HD 21 Sep 2018 $185.00 P | $ 177.00 | ( $ -0.79 ) | $ 33,995.29 | ➤ $ 8,677.29 | |
| #220 | 2018-08-06 | : | -1 | × | CVS 21 Sep 2018 $65.00 P | $ 222.00 | ( $ -0.84 ) | $ 33,819.08 | ➤ $ 8,678.08 | |
| #219 | 2018-08-06 | : | -2 | × | CSCO 19 Oct 2018 $40.00 P | $ 124.00 | ( $ -2.57 ) | $ 33,597.92 | ➤ $ 8,678.92 | |
| #218 | 2018-08-06 | : | -2 | × | BBY 21 Sep 2018 $70.00 P | $ 324.00 | ( $ -0.98 ) | $ 33,476.49 | ➤ $ 8,681.49 | |
| #217 | 2018-08-06 | : | -2 | × | ADM 21 Dec 2018 $45.00 P | $ 124.00 | ( $ -0.73 ) | $ 33,153.47 | ➤ $ 8,682.47 | |
| #216 | 2018-07-30 | : | -1 | × | MGM 21 Sep 2018 $31.00 P | $ 144.00 | ( $ -0.79 ) | $ 33,030.20 | ➤ $ 8,683.20 | |
| #215 | 2018-07-26 | : | -1 | × | MKC 21 Sep 2018 $115.00 P | $ 353.00 | ( $ -0.12 ) | $ 32,886.99 | ➤ $ 8,683.99 | |
| #214 | 2018-07-20 | : | -2 | × | WSM 16 Nov 2018 $60.00 P | $ 717.00 | ( $ 0.00 ) | $ 32,534.11 | ➤ $ 8,684.11 | |
| #213 | 2018-07-18 | : | -1 | × | HSY 24 Aug 2018 $91.00 P | $ 229.00 | ( $ -0.62 ) | $ 31,817.11 | ➤ $ 8,684.11 | |
| #212 | 2018-06-20 | : | -2 | × | SBUX 17 Jan 2020 $50.00 P | $ 915.00 | ( $ -2.57 ) | $ 31,588.73 | ➤ $ 8,455.73 | |
| #211 | 2018-06-20 | : | -1 | × | HSY 20 Jul 2018 $92.00 P | $ 194.00 | ( $ -65.41 ) | → #213 | $ 30,676.30 | ➤ $ 8,458.30 |
| #210 | 2018-06-20 | : | -3 | × | GIS 17 Jan 2020 $42.50 P | $ 1,224.00 | ( $ -1.49 ) | $ 30,547.71 | ➤ $ 8,329.71 | |
| #209 | 2018-06-20 | : | 3 | × | GIS 17 Jan 2020 $60.00 C | $ 0.00 | ( $ -235.46 ) | $ 29,325.20 | ➤ $ 8,331.20 | |
| #208 | 2018-06-14 | : | -2 | × | TGT 19 Oct 2018 $70.00 P | $ 355.00 | ( $ -20.43 ) | → #228 | $ 29,560.66 | ➤ $ 8,566.66 |
| #207 | 2018-06-14 | : | -3 | × | NKE 19 Oct 2018 $65.00 P | $ 264.00 | ( $ -31.18 ) | → #227 | $ 29,226.09 | ➤ $ 8,232.09 |
| #206 | 2018-06-14 | : | -20 | × | F 18 Jan 2019 $12.00 C | $ 1,383.00 | ( $ -306.09 ) | $ 28,993.27 | ➤ $ 7,999.27 | |
| #205 | 2018-06-14 | : | -2 | × | WBA 19 Oct 2018 $70.00 C | $ 288.00 | ( $ -0.98 ) | $ 27,916.36 | ➤ $ 6,922.36 | |
| #204 | 2018-06-14 | : | -1 | × | TSM 18 Jan 2019 $45.00 C | $ 55.00 | ( $ -0.34 ) | $ 27,629.34 | ➤ $ 6,923.34 | |
| #203 | 2018-06-14 | : | -1 | × | TRV 19 Oct 2018 $140.00 C | $ 124.00 | ( $ -1.09 ) | $ 27,574.68 | ➤ $ 6,923.68 | |
| #202 | 2018-06-14 | : | -1 | × | TJX 19 Oct 2018 $105.00 C | $ 90.00 | ( $ -398.62 ) | → #229 | $ 27,451.77 | ➤ $ 6,924.77 |
| #201 | 2018-06-14 | : | -1 | × | T 19 Oct 2018 $36.00 C | $ 94.00 | ( $ -1.58 ) | $ 27,760.39 | ➤ $ 7,233.39 | |
| #200 | 2018-06-14 | : | -1 | × | RDS.B 18 Jan 2019 $80.00 C | $ 115.00 | ( $ -30.67 ) | $ 27,667.97 | ➤ $ 7,234.97 | |
| #199 | 2018-06-14 | : | -2 | × | PG 19 Oct 2018 $85.00 C | $ 74.00 | ( $ -0.98 ) | $ 27,583.64 | ➤ $ 7,150.64 | |
| #198 | 2018-06-14 | : | -1 | × | LOW 18 Jan 2019 $120.00 C | $ 110.00 | ( $ -0.79 ) | $ 27,510.62 | ➤ $ 7,151.62 | |
| #197 | 2018-06-14 | : | -1 | × | JNJ 21 Dec 2018 $135.00 C | $ 150.00 | ( $ -1.09 ) | $ 27,401.41 | ➤ $ 7,152.41 | |
| #196 | 2018-06-14 | : | -2 | × | GILD 16 Nov 2018 $85.00 C | $ 166.00 | ( $ -1.58 ) | $ 27,252.50 | ➤ $ 7,153.50 | |
| #195 | 2018-06-14 | : | -2 | × | DIS 19 Oct 2018 $125.00 C | $ 116.00 | ( $ -1.58 ) | $ 27,088.08 | ➤ $ 7,155.08 | |
| #194 | 2018-06-14 | : | -2 | × | CMCSA 17 Aug 2018 $35.00 C | $ 164.00 | ( $ -85.40 ) | → #225 | $ 26,973.66 | ➤ $ 7,156.66 |
| #193 | 2018-06-14 | : | -1 | × | BUD 21 Dec 2018 $115.00 C | $ 85.00 | ( $ -0.79 ) | $ 26,895.06 | ➤ $ 7,078.06 | |
| #192 | 2018-06-14 | : | -1 | × | AAPL 20 Jul 2018 $200.00 C | $ 122.00 | ( $ -1.09 ) | $ 26,810.85 | ➤ $ 7,078.85 | |
| #191 | 2018-06-12 | : | -2 | × | TPR 20 Jul 2018 $45.00 P | $ 140.00 | ( $ -8.76 ) | $ 26,689.94 | ➤ $ 6,957.94 | |
| #190 | 2018-06-12 | : | -1 | × | MKC 21 Sep 2018 $100.00 P | $ 185.00 | ( $ -18.36 ) | → #215 | $ 26,558.70 | ➤ $ 6,826.70 |
| #189 | 2018-06-12 | : | -2 | × | AEO 17 Aug 2018 $24.00 P | $ 180.00 | ( $ -9.17 ) | $ 26,392.06 | ➤ $ 6,660.06 | |
| #188 | 2018-05-24 | : | -2 | × | WSM 17 Aug 2018 $47.50 P | $ 240.00 | ( $ -12.08 ) | → #214 | $ 26,221.23 | ➤ $ 6,489.23 |
| #187 | 2018-05-24 | : | -2 | × | TJX 19 Oct 2018 $82.50 P | $ 380.00 | ( $ -17.28 ) | → #230 | $ 25,993.31 | ➤ $ 6,261.31 |
| #186 | 2018-05-24 | : | -2 | × | TGT 20 Jul 2018 $67.50 P | $ 224.00 | ( $ -32.79 ) | → #208 | $ 25,630.59 | ➤ $ 5,898.59 |
| #185 | 2018-05-24 | : | -2 | × | HSY 15 Jun 2018 $91.00 P | $ 236.00 | ( $ -0.74 ) | $ 25,439.38 | ➤ $ 5,707.38 | |
| #184 | 2018-05-11 | : | -1 | × | WMT 21 Jun 2019 $82.50 P | $ 667.00 | ( $ -0.64 ) | $ 25,204.12 | ➤ $ 5,472.12 | |
| #183 | 2018-05-11 | : | -1 | × | VLO 17 Jan 2020 $90.00 C | $ 2,935.00 | ( $ -0.69 ) | $ 24,537.76 | ➤ $ 5,472.76 | |
| #182 | 2018-05-11 | : | -1 | × | PG 17 Jan 2020 $72.50 P | $ 633.00 | ( $ -0.63 ) | $ 21,603.45 | ➤ $ 5,473.45 | |
| #181 | 2018-05-11 | : | -1 | × | MO 21 Jul 2019 $55.00 P | $ 579.00 | ( $ -0.63 ) | $ 20,971.08 | ➤ $ 5,474.08 | |
| #180 | 2018-05-11 | : | -3 | × | GPS 21 Dec 2018 $29.00 P | $ 912.00 | ( $ -1.45 ) | $ 20,392.71 | ➤ $ 5,474.71 | |
| #179 | 2018-05-11 | : | -2 | × | DIS 17 Jan 2020 $100.00 P | $ 1,845.00 | ( $ -1.15 ) | $ 19,482.16 | ➤ $ 5,476.16 | |
| #178 | 2018-05-11 | : | 2 | × | DIS 17 Jan 2020 $130.00 C | $ 0.00 | ( $ -712.11 ) | $ 17,638.31 | ➤ $ 5,477.31 | |
| #177 | 2018-04-20 | : | -3 | × | GLW 18 Jan 2019 $27.00 P | $ 618.00 | ( $ -102.32 ) | $ 18,350.42 | ➤ $ 6,189.42 | |
| #176 | 2018-04-20 | : | -1 | × | PG 18 Jan 2019 $77.50 P | $ 627.00 | ( $ -672.25 ) | → #182 | $ 17,834.74 | ➤ $ 5,673.74 |
| #175 | 2018-04-20 | : | -1 | × | MO 20 Jul 2018 $60.00 P | $ 438.00 | ( $ -505.25 ) | → #181 | $ 17,879.99 | ➤ $ 5,718.99 |
| #174 | 2018-04-20 | : | -3 | × | KBH 18 Jan 2019 $30.00 P | $ 1,494.00 | ( $ -1.46 ) | $ 17,947.24 | ➤ $ 5,786.24 | |
| #173 | 2018-04-06 | : | -1 | × | WMT 18 May 2018 $87.50 P | $ 304.00 | ( $ -508.25 ) | → #184 | $ 16,454.70 | ➤ $ 5,787.70 |
| #172 | 2018-04-06 | : | -2 | × | DIS 18 May 2018 $110.00 C | $ 116.00 | ( $ -1.38 ) | $ 16,658.95 | ➤ $ 5,991.95 | |
| #171 | 2018-03-23 | : | -3 | × | XLRE 18 May 2018 $29.00 P | $ 120.00 | ( $ -0.18 ) | $ 16,544.33 | ➤ $ 5,877.33 | |
| #170 | 2018-03-23 | : | -2 | × | APC 18 May 2018 $57.50 P | $ 290.00 | ( $ -0.99 ) | $ 16,424.51 | ➤ $ 5,757.51 | |
| #169 | 2018-03-22 | : | -3 | × | PFE 18 May 2018 $34.00 P | $ 141.00 | ( $ -1.47 ) | $ 16,135.50 | ➤ $ 5,468.50 | |
| #168 | 2018-03-22 | : | -3 | × | GPS 18 May 2018 $31.00 P | $ 447.00 | ( $ -551.90 ) | → #180 | $ 15,995.97 | ➤ $ 5,328.97 |
| #167 | 2018-03-14 | : | -6 | × | WEN 18 May 2018 $16.00 P | $ 270.00 | ( $ -0.25 ) | $ 16,100.87 | ➤ $ 5,433.87 | |
| #166 | 2018-03-14 | : | -2 | × | STLD 18 May 2018 $46.00 P | $ 410.00 | ( $ -0.69 ) | $ 15,831.12 | ➤ $ 5,164.12 | |
| #165 | 2018-03-14 | : | -1 | × | RS 20 Apr 2018 $87.50 P | $ 170.00 | ( $ -0.34 ) | $ 15,421.81 | ➤ $ 4,754.81 | |
| #164 | 2018-03-14 | : | -3 | × | PFE 15 Jun 2018 $34.00 P | $ 150.00 | ( $ -1.47 ) | $ 15,252.15 | ➤ $ 4,585.15 | |
| #163 | 2018-03-14 | : | 10 | × | NEE 20 Apr 2018 $150.00 P | $ 0.00 | ( $ -1,055.63 ) | $ 15,103.62 | ➤ $ 4,436.62 | |
| #162 | 2018-03-14 | : | -10 | × | NEE 20 Apr 2018 $155.00 P | $ 2,153.00 | ( $ -5.70 ) | $ 16,159.25 | ➤ $ 5,492.25 | |
| #161 | 2018-03-14 | : | -2 | × | KMB 17 Jan 2020 $100.00 P | $ 1,503.00 | ( $ -0.11 ) | $ 14,011.95 | ➤ $ 3,344.95 | |
| #160 | 2018-03-14 | : | 2 | × | KMB 17 Jan 2020 $135.00 C | $ 0.00 | ( $ -783.14 ) | $ 12,509.06 | ➤ $ 3,345.06 | |
| #159 | 2018-03-14 | : | -2 | × | HOG 18 May 2018 $40.00 P | $ 186.00 | ( $ -0.98 ) | $ 13,292.20 | ➤ $ 4,128.20 | |
| #158 | 2018-03-14 | : | -3 | × | GLW 20 Apr 2018 $29.00 P | $ 141.00 | ( $ -465.32 ) | → #177 | $ 13,107.18 | ➤ $ 3,943.18 |
| #157 | 2018-03-14 | : | -1 | × | BUD 18 May 2018 $105.00 P | $ 200.00 | ( $ -0.79 ) | $ 13,431.50 | ➤ $ 4,267.50 | |
| #156 | 2018-02-26 | : | -2 | × | ABBV 17 Jan 2020 $100.00 C | $ 5,508.00 | ( $ -1.24 ) | $ 13,232.29 | ➤ $ 4,068.29 | |
| #155 | 2018-02-26 | : | -1 | × | WMT 06 Apr 2018 $90.00 P | $ 130.00 | ( $ -221.61 ) | → #173 | $ 7,725.53 | ➤ $ 4,069.53 |
| #154 | 2018-02-26 | : | -1 | × | LOW 20 Apr 2018 $92.50 P | $ 196.00 | ( $ -0.79 ) | $ 7,817.14 | ➤ $ 4,161.14 | |
| #153 | 2018-02-26 | : | 5 | × | HD 20 Apr 2018 $185.00 P | $ 0.00 | ( $ -4,827.70 ) | $ 7,621.93 | ➤ $ 3,965.93 | |
| #152 | 2018-02-26 | : | -5 | × | HD 20 Apr 2018 $190.00 P | $ 3,450.00 | ( $ -2.79 ) | $ 12,449.63 | ➤ $ 8,793.63 | |
| #151 | 2018-02-23 | : | -2 | × | SBUX 18 May 2018 $52.50 P | $ 194.00 | ( $ -0.98 ) | $ 9,002.42 | ➤ $ 5,346.42 | |
| #150 | 2018-02-23 | : | -1 | × | PG 20 Apr 2018 $80.00 P | $ 171.00 | ( $ -562.41 ) | → #176 | $ 8,809.40 | ➤ $ 5,153.40 |
| #149b | 2018-02-23 | : | -1 | × | MO 20 Apr 2018 $60.00 P | $ 72.00 | ( $ -267.16 ) | → #175 | $ 9,200.81 | ➤ $ 5,544.81 |
| #149a | 2018-02-23 | : | -1 | × | MO 20 Apr 2018 $60.00 P | $ 72.00 | ( $ -0.54 ) | $ 9,395.97 | ➤ $ 5,739.97 | |
| #148 | 2018-02-23 | : | -2 | × | HRL 15 Jun 2018 $32.50 P | $ 304.00 | ( $ -0.01 ) | $ 9,324.51 | ➤ $ 5,668.51 | |
| #147 | 2018-02-23 | : | -2 | × | EEM 18 May 2018 $46.00 P | $ 156.00 | ( $ -2.42 ) | $ 9,020.52 | ➤ $ 5,364.52 | |
| #146 | 2018-02-23 | : | -2 | × | DIS 06 Apr 2018 $112.00 C | $ 142.00 | ( $ -0.74 ) | $ 8,866.94 | ➤ $ 5,210.94 | |
| #145 | 2018-02-23 | : | -3 | × | BAC 18 May 2018 $29.00 P | $ 150.00 | ( $ -1.47 ) | $ 8,725.68 | ➤ $ 5,069.68 | |
| #144 | 2018-02-23 | : | -2 | × | AAPL 18 May 2018 $155.00 P | $ 374.00 | ( $ -2.43 ) | $ 8,577.15 | ➤ $ 4,921.15 | |
| #143 | 2018-02-16 | : | -3 | × | NKE 20 Jul 2018 $60.00 P | $ 441.00 | ( $ -20.73 ) | → #207 | $ 8,205.58 | ➤ $ 4,549.58 |
| #142 | 2018-02-16 | : | -2 | × | GILD 15 Jun 2018 $85.00 C | $ 678.00 | ( $ -11.15 ) | $ 7,785.31 | ➤ $ 4,129.31 | |
| #141 | 2018-01-12 | : | 6 | × | WYNN 16 Mar 2018 $155.00 P | $ 0.00 | ( $ -2,708.04 ) | $ 7,118.46 | ➤ $ 3,462.46 | |
| #140 | 2018-01-12 | : | -6 | × | WYNN 16 Mar 2018 $160.00 P | $ 3,791.00 | ( $ -3.14 ) | $ 9,826.50 | ➤ $ 6,170.50 | |
| #139 | 2018-01-12 | : | 6 | × | RL 20 Apr 2018 $100.00 P | $ 0.00 | ( $ -2,427.25 ) | $ 6,038.64 | ➤ $ 2,382.64 | |
| #138 | 2018-01-12 | : | -6 | × | RL 20 Apr 2018 $105.00 P | $ 3,566.00 | ( $ -3.34 ) | $ 8,465.89 | ➤ $ 4,809.89 | |
| #137 | 2018-01-12 | : | 8 | × | JPM 16 Mar 2018 $105.00 P | $ 0.00 | ( $ -842.23 ) | $ 4,903.23 | ➤ $ 1,247.23 | |
| #136 | 2018-01-12 | : | -8 | × | JPM 16 Mar 2018 $110.00 P | $ 1,864.00 | ( $ -10.29 ) | $ 5,745.46 | ➤ $ 2,089.46 | |
| #135 | 2018-01-12 | : | -3 | × | KSS 16 Mar 2018 $55.00 P | $ 405.00 | ( $ -0.14 ) | $ 3,891.75 | ➤ $ 235.75 | |
| #134 | 2018-01-10 | : | -4 | × | QCOM 17 Jan 2020 $65.00 C | $ 3,140.00 | ( $ -2.05 ) | $ 3,486.89 | ➤ $ -169.11 | |
| #133 | 2018-01-10 | : | -20 | × | F 17 Jan 2020 $12.00 C | $ 3,720.00 | ( $ -2,558.96 ) | → #206 | $ 348.94 | ➤ $ -167.06 |
| #132 | 2018-01-10 | : | -2 | × | KO 18 Jan 2019 $47.00 C | $ 414.00 | ( $ -109.56 ) | $ -812.10 | ➤ $ -1,328.10 | |
| #131 | 2018-01-10 | : | -3 | × | TGT 16 Mar 2018 $60.00 P | $ 144.00 | ( $ -1.48 ) | $ -1,116.54 | ➤ $ -1,632.54 | |
| #130 | 2018-01-10 | : | -3 | × | KBH 20 Apr 2018 $31.00 P | $ 306.00 | ( $ -1,283.91 ) | → #174 | $ -1,259.06 | ➤ $ -1,775.06 |
| #129 | 2018-01-10 | : | -2 | × | FAST 18 May 2018 $50.00 P | $ 350.00 | ( $ 0.00 ) | $ -281.15 | ➤ $ -797.15 | |
| #128 | 2018-01-10 | : | -1 | × | AXP 20 Apr 2018 $100.00 P | $ 330.00 | ( $ -0.80 ) | $ -631.15 | ➤ $ -1,147.15 | |
| #127 | 2017-11-30 | : | -2 | × | EEM 19 Jan 2018 $46.00 P | $ 234.00 | ( $ -0.85 ) | $ -960.35 | ➤ $ -1,476.35 | |
| #126 | 2017-11-30 | : | -2 | × | BBT 16 Mar 2018 $50.00 P | $ 130.00 | ( $ -0.98 ) | $ -1,193.50 | ➤ $ -1,709.50 | |
| #125 | 2017-11-21 | : | -3 | × | X 19 Jan 2018 $26.00 P | $ 252.00 | ( $ -2.09 ) | $ -1,322.52 | ➤ $ -1,838.52 | |
| #124 | 2017-11-21 | : | -2 | × | RL 19 Jan 2018 $80.00 P | $ 150.00 | ( $ -0.09 ) | $ -1,572.43 | ➤ $ -2,088.43 | |
| #123 | 2017-11-21 | : | -3 | × | BAC 19 Jan 2018 $25.00 P | $ 120.00 | ( $ -2.23 ) | $ -1,722.34 | ➤ $ -2,238.34 | |
| #122 | 2017-11-17 | : | -1 | × | VLO 18 Jan 2019 $80.00 C | $ 892.00 | ( $ -3,535.26 ) | → #183 | $ -1,840.11 | ➤ $ -2,356.11 |
| #121 | 2017-11-17 | : | -3 | × | NKE 20 Apr 2018 $50.00 P | $ 208.00 | ( $ -31.15 ) | → #143 | $ 803.15 | ➤ $ 287.15 |
| #120 | 2017-11-17 | : | -2 | × | AAPL 16 Feb 2018 $150.00 P | $ 376.00 | ( $ -1.60 ) | $ 626.30 | ➤ $ 110.30 | |
| #119 | 2017-11-17 | : | -2 | × | WBA 15 Dec 2017 $70.00 P | $ 244.00 | ( $ -0.99 ) | $ 251.90 | ➤ $ -264.10 | |
| #118 | 2017-11-17 | : | -2 | × | TXN 16 Mar 2018 $85.00 P | $ 200.00 | ( $ -0.99 ) | $ 8.89 | ➤ $ -507.11 | |
| #117 | 2017-11-17 | : | -2 | × | MO 19 Jan 2018 $62.50 P | $ 140.00 | ( $ -0.99 ) | $ -190.12 | ➤ $ -706.12 | |
| #116b | 2017-10-20 | : | -1 | × | INTC 17 Jan 2020 $40.00 C | $ 516.00 | ( $ -1,691.18 ) | $ -329.13 | ➤ $ -845.13 | |
| #116a | 2017-10-20 | : | -1 | × | INTC 17 Jan 2020 $40.00 C | $ 516.00 | ( $ -0.51 ) | $ 846.04 | ➤ $ 330.04 | |
| #115 | 2017-10-20 | : | -1 | × | D 20 Apr 2018 $80.00 C | $ 253.00 | ( $ -5.69 ) | $ 330.55 | ➤ $ 330.55 | |
| #114 | 2017-10-20 | : | -1 | × | DIS 15 Dec 2017 $95.00 P | $ 145.00 | ( $ -17.59 ) | $ 83.24 | ➤ $ 83.24 | |
| #113 | 2017-09-27 | : | -2 | × | VLO 17 Nov 2017 $70.00 P | $ 162.00 | ( $ -0.99 ) | $ -44.17 | ➤ $ -44.17 | |
| #112 | 2017-09-14 | : | -1 | × | WFC 19 Jan 2018 $50.00 P | $ 166.00 | ( $ -1.59 ) | $ -205.18 | ➤ $ -205.18 | |
| #111 | 2017-09-14 | : | -2 | × | AAPL 15 Dec 2017 $135.00 P | $ 204.00 | ( $ -14.17 ) | → #120 | $ -369.59 | ➤ $ -369.59 |
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:
| $ 36,199 | $ 8,650 | |
Last Month:
| $ 33,720 | $ 6,978 | |
Difference:
| $ 2,479 | $ 1,672 |
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.
Another positive month but I'm still in a hole for 2018! I need to secure another $2,770 just to reset to where I started in January 2018...
Thanks for reading and take care, everybody!
Hi!
ReplyDeleteNice options performance, congrats for it!
Can you give some idea what is your basic rules for options trading? I know what is your guide for dividend stocks trading, but if it is not secret, please give an advice.
Keep working,
Regards!
Denes
Hi, Dénes -- thanks for your comment and kind words.
DeleteUnfortunately, I don't have a stated list of rules for options trading.
I mostly sell put options and covered calls and the underlying stocks are dividend growth stocks or dividend paying stocks.
Infrequently, I'll do a spread trade selling for example a put and buying a call together, as with this DIS spread options:
#179 2018-05-11 : -2 × DIS 17 Jan 2020 $100.00 P
#178 2018-05-11 : 2 × DIS 17 Jan 2020 $130.00 C
I sell puts on stocks I wouldn't mind owning and to generate extra income. Usually, my strike prices are well out of the money. Sometimes, I choose strike prices closer to at the money because I want to buy the underlying at a specific price.
Sometimes I enter new positions using covered call trades (if I can afford 100 or multiples of 100 shares). I choose strike prices far enough out of the money.
Generally, for covered calls, I think an achievable goal is to earn double the dividend yield. And for puts, I like to boost the underlying stock's dividend by a factor of 5.00 or more, or set things up so I can buy shares at a discount of at least 10%.
Hope this helps!
Hi DivGro!
ReplyDeleteThanks your answer. I also make option trades, i am very corious what is your tactics.
What is your opinion of the time of left when you sell options? cca. 30-60-90 days?
If it is in the money you roll it to next period in everytime?
Thanks again,
Denes
It varies greatly, sometimes I go out further due to the available premium being too low. I try to earn at least $75, but I prefer $100+. I do the same on the roll -- I'll go out far enough to earn a decent premium.
DeleteHi mate, amazing strategy! I'm willing if you have study structured option trade before (Condor, Buterfly, etc) or just spread option trade and call covered and put?? Also, check the #220 ticket explained you mentioned Cisco Systems but tagged CVS link... Thanks for the awesome post!!
ReplyDeleteThanks -- I fixed the tag. I have not studied more complex combinations such as Condors and Butterflies. So far, just spreads in addition to covered calls and puts.
Delete