Monday, January 7, 2019

Options Update: December 2018 (Part 3)

December turned out to be a busy month for options trading, so I decided to break this update into three parts.

Part 1 presented new covered calls and Part 2 presented new put contracts and one options assignment. It also presented a listing of options expiring soon.

In Part 3, I'm wrapping up my December Options Update article with some protective trades, and I'm reviewing how I faired with my 2018 options goal. I'll conclude with a quick update of my 2019 options goal.

Introduction


Volatility increased substantially over the last three months. While increased volatility provides  opportunities for options traders (and especially options sellers), it makes things more challenging, too.


Certainly, I've been nudged into doing some protective trades, either closing options early or rolling forward options to buy more time or to make the trade potentially more lucrative.

Here is a snapshot of the protective trades I made in December:


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 the following options early:

134b2018-01-11: 2×QCOM 17 Jan 2020 $65.00 C $ 1,570.00 ( $ -756.60 )
#1832018-05-11: 1×VLO 17 Jan 2020 $90.00 C $ 2,935.00 ( $ -701.77 )
#2292018-08-28: 2×TJX 18 Apr 2019 $55.00 C $    572.00 ( $   -40.29 )
#2422018-10-12: 2×XEL 21 Dec 2018 $45.00 P $    120.00 ( $   -18.00 )
#2462018-10-19: 10×F 15 Mar 2019 $10.00 C $    160.00 ( $ -160.61 )
#250a2018-10-24: 9×F 15 Mar 2019 $10.00 C $    171.00 ( $ -142.35 )
#2512018-10-25: 3×GILD 18 Jan 2019 $80.00 C $    304.00 ( $   -63.51 )
#2652018-12-06: 3×KBH 19 Jul 2019 $26.00 C $    309.00 ( $ -279.81 )
#2862018-12-06: 2×WSM 15 Feb 2019 $60.00 C $    300.00 ( $   -71.57 )

On 19 December, Qualcomm (QCOM) traded 13% below the $65 LEAP call I'd sold. I decided to close the option early and so secured 51% of the premium received. The trade netted $813 in secured options income.

On 4 December, I decided to buy back the LEAP option I'd sold on Valero Energy (VLO). The trade cost me just more than $700, but I netted $2,233.23 in secured options income, or about 76% of the available premium. With VLO trading down significantly, I decided it was a good time to buy back the LEAP.

I also closed the $55 April 2019 call options on TJX (TJX) on 19 December, netting $532 in secured options income, or the equivalent of 93% of the original premium received. This trade worked out nicely, as I secured 93% of available income four months before options expiration!

On 3 December, I closed the $45 puts I'd sold on Xcel Energy (XEL) early. The trade netted $102 and I secured 85% of the available premium. 

To harvest tax losses on my Ford Motor (F) position, first I needed to buy back the March 2019 covered calls I'd sold. The trade netted only $28 in secured options income. Nevertheless, offsetting capital gains will be worth the effort.

On 7 December, Gilead Sciences (GILD) traded below $68 a share, so I decided to buy back the $80 January calls I'd sold. The trade netted $240 or the equivalent of 79% of the original premium.

I wanted to close my KB Home (KBH) position and so harvest tax losses on that trade. So, on 19 December I closed the covered calls I'd sold on KBH, for a net gain of $29 in secured options. Again, the trade was not very lucrative, but offsetting capital gains will be!

Finally, on 19 December I bought back two of the February 2019, $60 covered calls on Williams-Sonoma (WSM), again for tax-loss harvesting purposes. The trade secured $228 in options income, or 78% of the available premium.

All together, these trades netted about $4,206 in options income.

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.

I rolled forward the following option this month:

#2642018-12-06: 1×JPM 18 Jan 2019 $110.00 C $    146.00 ( $      -10.17 )→ #293
#2932018-12-27:-1×JPM 15 Feb 2019 $105.00 C $      98.00 ( $        -1.09 )
#2172018-08-06: 2×ADM 21 Dec 2018 $45.00 P $    124.00 ( $    -671.30 )→ #291
#2912018-12-21:-2×ADM 15 Mar 2019 $45.00 P $    851.00 ( $        -1.58 )
#2452018-10-12: 2×WBA 18 Jan 2019 $72.50 C $    615.00 ( $ -2,046.00 )→ #285
#2852018-12-06:-2×WBA 15 Jan 2021 $85.00 C $ 2,074.00 ( $        -2.20 )
#2492018-10-23: 1×TSM 18 Jan 2019 $40.00 C $    114.00 ( $      -37.17 )→ #282
#2822018-12-06:-1×TSM 19 Jul 2019 $45.00 C $      60.00 ( $        -0.34 )
#2302018-08-28: 4×TJX 18 Apr 2019 $50.00 P $    499.00 ( $ -1,829.58 )→ #278
#2782018-12-06:-4×TJX 17 Jan 2020 $45.00 P $ 1,746.00 ( $        -4.00 )
#2482018-10-19: 2×PG 18 Jan 2019 $85.00 C $    695.00 ( $ -1,622.40 )→ #273
#2732018-12-06:-2×PG 15 Jan 2021 $95.00 C $ 1,560.00 ( $        -1.59 )

On 27 December, JP Morgan Chase (JPM) traded well below the January $110 call strike price, so I decided to roll forward the options to February 2019 and simultaneously to reduce the strike price to $105.00. The trade netted $135.83 in secured options income. Rolling the options cost me $10.17, but I received $96.91 for selling the February 2019 puts.


On 21 December, Advanced Micro Devices (ADM) closed at $40.80 per share, significantly below the $45 December put strike price. I decided to roll forward the options to March 2019. The trade cost me $547.30 in secured options income, but I added $849.42 to my options income tally for selling the puts. 

On 6 December, Walgreens Boots Alliance (WBA) traded well above the January $72.50 call strike price, so chances were good that the options would be assigned. To protect my shares, I rolled forward the options to January 2021. Selling the LEAPs covered the cost of buying back the January  $72.50 calls. The trade cost me $1,431 in secured options income, but I added $2,071.80 to my options income tally.

Also On 6 December, Taiwan Semiconductor Manufacturing (TSM) traded below the January $40 call strike price. While the share price was 8% below the strike price, nevertheless I rolled forward the option to July 2019, simultaneously increasing the strike price to $45. The trade netted $76.83 in secured options income, and I also received $59.66 for selling the July put.

TJX (TJX) traded below $47 on 6 December, well below the July $50 put strike price. While I wouldn't mind buying additional TJX shares, I decided to roll forward the puts to buy additional time. Selling the January 2020 LEAPs covered most (but not all) of the cost associated with buying back the July $50 puts. The trade cost me $1,330.58 in secured options income, but I added $1,742 to my options income tally.

Finally, the January $85 call options on Procter & Gamble (PG) is deep in the money, so I rolled forward these calls and simultaneously increased the strike price to $95. Selling the January 2021 LEAPs covered most (but not all) of the cost associated with buying back the January $85 calls. The trade cost me $927.40 in secured options income, while selling the LEAPs earned me $1,558.41 in options income.

All together, these trades cost me about $4,024 in secured options income, while I added about $6,378 to my options income tally.

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
#2962018-12-28:-1×JPM 15 Feb 2019 $105.00 C $       154.00 ( $          -1.09 )$    42,792.51 ➤ $    17,658.51 
#2952018-12-28:-1×DGX 17 May 2019 $100.00 C $         62.00 ( $          -1.09 )$    42,639.60 ➤ $    17,659.60 
#2942018-12-27:-1×WSM 15 Feb 2019 $55.00 C $         75.00 ( $          -0.34 )$    42,578.69 ➤ $    17,660.69 
#2932018-12-27:-1×JPM 15 Feb 2019 $105.00 C $         98.00 ( $          -1.09 )$    42,504.03 ➤ $    17,661.03 
#2922018-12-27:-1×IP 15 Feb 2019 $42.50 C $       105.00 ( $          -1.09 )$    42,407.12 ➤ $    17,662.12 
#2912018-12-21:-2×ADM 15 Mar 2019 $45.00 P $       851.00 ( $          -1.58 )$    42,303.21 ➤ $    17,663.21 
#2902018-12-14:-2×MO 21 Jun 2019 $60.00 C $       230.00 ( $          -1.58 )$    41,453.79 ➤ $    17,664.79 
#2892018-12-14:-1×MO 18 Jan 2019 $52.50 P $       181.00 ( $          -0.79 )$    41,225.37 ➤ $    17,666.37 
#2882018-12-14:-1×AAPL 18 Jan 2019 $160.00 P $       375.00 ( $          -0.79 )$    41,045.16 ➤ $    17,667.16 
#2872018-12-06:-1×XOM 18 Apr 2019 $85.00 C $       126.00 ( $          -1.09 )$    40,670.95 ➤ $    17,667.95 
#2862018-12-06:-2×WSM 15 Feb 2019 $60.00 C $       300.00 ( $        -71.57 )$    40,546.04 ➤ $    17,669.04 
#2852018-12-06:-2×WBA 15 Jan 2021 $85.00 C $    2,074.00 ( $          -2.20 )$    40,317.61 ➤ $    17,440.61 
#2842018-12-06:-1×VYM 18 Jan 2019 $85.00 C $         80.00 ( $          -0.34 )$    38,245.81 ➤ $    17,442.81 
#2832018-12-06:-1×VLO 14 Mar 2019 $90.00 C $       165.00 ( $          -0.79 )$    38,166.15 ➤ $    17,443.15 
#2822018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         60.00 ( $          -0.34 )$    38,001.94 ➤ $    17,443.94 
#2812018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         64.00 ( $          -1.09 )$    37,942.28 ➤ $    17,444.28 
#2802018-12-06:-1×TRV 18 Apr 2019 $140.00 C $       100.00 ( $          -0.34 )$    37,879.37 ➤ $    17,445.37 
#2792018-12-06:-1×TROW 18 Apr 2019 $110.00 C $       115.00 ( $          -0.34 )$    37,779.71 ➤ $    17,445.71 
#2782018-12-06:-4×TJX 17 Jan 2020 $45.00 P $    1,746.00 ( $          -4.00 )$    37,665.05 ➤ $    17,446.05 
#2772018-12-06:-4×T 21 Jun 2019 $35.00 C $       128.00 ( $          -1.95 )$    35,923.05 ➤ $    17,450.05 
#2762018-12-06:-1×SBUX 15 Feb 2019 $70.00 C $       132.00 ( $          -0.79 )$    35,797.00 ➤ $    17,452.00 
#2752018-12-06:-1×ROST 17 May 2019 $100.00 C $         85.00 ( $          -1.94 )$    35,665.79 ➤ $    17,452.79 
#2742018-12-06:-1×PM 18 Jan 2019 $80.00 P $       160.00 ( $          -0.79 )$    35,582.73 ➤ $    17,454.73 
#2732018-12-06:-2×PG 15 Jan 2021 $95.00 C $    1,560.00 ( $          -1.59 )$    35,423.52 ➤ $    17,455.52 
#2722018-12-06:-2×PFE 21 Jun 2019 $50.00 C $       154.00 ( $          -0.97 )$    33,865.11 ➤ $    17,457.11 
#2712018-12-06:-2×O 21 Jun 2019 $70.00 C $       188.00 ( $            0.00 )$    33,712.08 ➤ $    17,458.08 
#2702018-12-06:-1×MSFT 15 Mar 2019 $125.00 C $       115.00 ( $          -0.79 )$    33,524.08 ➤ $    17,458.08 
#2692018-12-06:-5×MAIN 21 Jun 2019 $40.00 C $       250.00 ( $          -0.18 )$    33,409.87 ➤ $    17,458.87 
#2682018-12-06:-1×LOW 21 Jun 2019 $120.00 C $         67.00 ( $          -0.79 )$    33,160.05 ➤ $    17,459.05 
#2672018-12-06:-4×KRG 17 May 2019 $20.00 C $         60.00 ( $            0.00 )$    33,093.84 ➤ $    17,459.84 
#2662018-12-06:-2×KO 17 May 2019 $52.50 C $       154.00 ( $          -1.57 )$    33,033.84 ➤ $    17,459.84 
#2652018-12-06:-3×KBH 19 Jul 2019 $26.00 C $       309.00 ( $      -279.81 )$    32,881.41 ➤ $    17,461.41 
#2642018-12-06:-1×JPM 18 Jan 2019 $110.00 C $       146.00 ( $        -10.17 )→ #293$    32,852.22 ➤ $    17,432.22 
#2632018-12-06:-2×INTC 15 Feb 2019 $55.00 C $       106.00 ( $          -2.53 )$    32,716.39 ➤ $    17,296.39 
#2622018-12-06:-1×HRL 21 Jun 2019 $50.00 C $       110.00 ( $          -0.34 )$    32,612.92 ➤ $    17,298.92 
#2612018-12-06:-1×ES 19 Jul 2019 $70.00 C $       270.00 ( $          -0.34 )$    32,503.26 ➤ $    17,299.26 
#2602018-12-06:-1×DGX 17 May 2019 $100.00 C $       135.00 ( $          -0.34 )$    32,233.60 ➤ $    17,299.60 
#2592018-12-06:-1×D 19 Jul 2019 $80.00 C $       130.00 ( $          -0.34 )$    32,098.94 ➤ $    17,299.94 
#2582018-12-06:-1×AFL 17 May 2019 $45.00 C $       160.00 ( $          -0.79 )$    31,969.28 ➤ $    17,300.28 
#2572018-12-06:-2×ABBV 17 May 2019 $100.00 C $       500.00 ( $          -1.58 )$    31,810.07 ➤ $    17,301.07 
#2562018-12-06:-1×AAPL 15 Feb 2019 $200.00 C $       167.00 ( $          -0.79 )$    31,311.65 ➤ $    17,302.65 
#2552018-11-01:-3×GPS 21 Jun 2019 $27.00 P $    1,004.00 ( $          -1.47 )$    31,145.44 ➤ $    17,303.44 
#2542018-11-01:-2×FL 15 Feb 2019 $45.00 P $       660.00 ( $          -1.61 )$    30,142.91 ➤ $    17,304.91 
#2532018-11-01:-2×CMCSA 21 Jun 2019 $42.50 C $       320.00 ( $          -1.28 )$    29,484.52 ➤ $    17,306.52 
#2522018-10-29:-1×IP 21 Dec 2018 $42.50 P $       162.00 ( $          -0.79 )$    29,165.80 ➤ $    17,307.80 
#2512018-10-25:-3×GILD 18 Jan 2019 $80.00 C $       304.00 ( $        -63.51 )$    29,004.59 ➤ $    17,146.59 
#250b2018-10-24:-1×F 15 Mar 2019 $10.00 C $         19.00 ( $          -1.03 )$    28,764.10 ➤ $    16,906.10 
#250a2018-10-24:-9×F 15 Mar 2019 $10.00 C $       171.00 ( $      -142.35 )$    28,746.13 ➤ $    16,907.13 
#2492018-10-23:-1×TSM 18 Jan 2019 $40.00 C $       114.00 ( $        -37.17 )→ #282$    28,717.48 ➤ $    16,878.48 
#2482018-10-19:-2×PG 18 Jan 2019 $85.00 C $       695.00 ( $   -1,622.40 )→ #273$    28,640.65 ➤ $    16,801.65 
#2472018-10-19:-3×NKE 18 Jan 2019 $70.00 P $       558.00 ( $          -3.84 )$    29,568.05 ➤ $    17,729.05 
#2462018-10-19:-10×F 15 Mar 2019 $10.00 C $       160.00 ( $      -160.61 )$    29,013.89 ➤ $    17,732.89 
#2452018-10-12:-2×WBA 18 Jan 2019 $72.50 C $       615.00 ( $   -2,046.00 )→ #285$    29,014.50 ➤ $    17,733.50 
#2442018-10-12:-1×JNJ 17 Jan 2020 $150.00 C $       518.00 ( $          -0.64 )$    30,445.50 ➤ $    19,164.50 
#2432018-10-12:-2×ALK 18 Apr 2019 $62.60 P $    1,106.00 ( $          -1.67 )$    29,928.14 ➤ $    19,165.14 
#2422018-10-12:-2×XEL 21 Dec 2018 $45.00 P $       120.00 ( $        -18.00 )$    28,823.81 ➤ $    19,166.81 
#2412018-10-12:-1×VZ 16 Nov 2018 $52.50 P $       115.00 ( $        -10.87 )$    28,721.81 ➤ $    19,064.81 
#2402018-10-12:-2×TSM 16 Nov 2018 $36.00 P $       100.00 ( $          -1.57 )$    28,617.68 ➤ $    18,960.68 
#2392018-10-12:-2×SBUX 17 Jan 2020 $55.00 P $       966.00 ( $          -0.84 )$    28,519.25 ➤ $    18,862.25 
#2382018-10-12:  2×SBUX 17 Jan 2020 $75.00 C $           0.00 ( $      -186.82 )$    27,554.09 ➤ $    18,863.09 
#2372018-10-12:-2×HRL 21 Dec 2018 $37.50 P $       160.00 ( $        -18.60 )$    27,740.91 ➤ $    19,049.91 
#2362018-10-12:-2×AFL 18 Jan 2019 $42.50 P $       252.00 ( $          -1.58 )$    27,599.51 ➤ $    18,908.51 
#2352018-10-02:-5×FLO 16 Nov 2018 $17.50 P $       150.00 ( $        -46.51 )$    27,349.09 ➤ $    18,910.09 
#2342018-10-02:-2×FL 16 Nov 2018 $50.00 P $       620.00 ( $      -599.68 )→ #254$    27,245.60 ➤ $    18,806.60 
#2332018-10-02:-2×ALK 21 Dec 2018 $65.00 P $       570.00 ( $   -1,047.73 )→ #243$    27,225.28 ➤ $    18,786.28 
#2322018-09-05:  1×MGM 17 Jan 2020 $28.00 P $       405.00 ( $          -0.64 )$    27,703.01 ➤ $    19,264.01 
#2312018-09-05:-1×GILD 16 Nov 2018 $85.00 C $         44.00 ( $        -12.14 )→ #251$    27,298.65 ➤ $    19,264.65 
#2302018-08-28:-4×TJX 18 Apr 2019 $50.00 P $       499.00 ( $   -1,829.58 )→ #278$    27,266.79 ➤ $    19,232.79 
#2292018-08-28:-2×TJX 18 Apr 2019 $55.00 C $       572.00 ( $        -40.29 )$    28,597.37 ➤ $    20,563.37 
#2282018-08-28:-2×TGT 19 Oct 2018 $80.00 P $       123.00 ( $          -0.82 )$    28,065.66 ➤ $    20,031.66 
#2272018-08-28:-3×NKE 19 Oct 2018 $75.00 P $       183.00 ( $        -91.65 )→ #247$    27,943.48 ➤ $    19,909.48 
#2262018-08-28:-10×F 18 Jan 2019 $11.00 C $       216.00 ( $        -81.06 )→ #250$    27,852.13 ➤ $    19,818.13 
#2252018-08-17:-2×CMCSA 16 Nov 2018 $37.50 C $       181.00 ( $      -264.09 )→ #253$    27,717.19 ➤ $    19,683.19 
#2242018-08-10:-10×F 18 Jan 2019 $11.00 C $       210.00 ( $        -65.61 )→ #246$    27,800.28 ➤ $    19,766.28 
#2232018-08-06:-1×UNP 19 Oct 2018 $140.00 P $       172.00 ( $          -1.59 )$    27,655.89 ➤ $    19,621.89 
#2222018-08-06:-1×HON 21 Sep 2018 $145.00 P $         75.00 ( $          -1.09 )$    27,485.48 ➤ $    19,451.48 
#2212018-08-06:-1×HD 21 Sep 2018 $185.00 P $       177.00 ( $          -0.79 )$    27,411.57 ➤ $    19,377.57 
#2202018-08-06:-1×CVS 21 Sep 2018 $65.00 P $       222.00 ( $          -0.84 )$    27,235.36 ➤ $    19,201.36 
#2192018-08-06:-2×CSCO 19 Oct 2018 $40.00 P $       124.00 ( $          -2.57 )$    27,014.20 ➤ $    18,980.20 
#2182018-08-06:-2×BBY 21 Sep 2018 $70.00 P $       324.00 ( $          -0.98 )$    26,892.77 ➤ $    18,858.77 
#2172018-08-06:-2×ADM 21 Dec 2018 $45.00 P $       124.00 ( $      -671.30 )→ #291$    26,569.75 ➤ $    18,535.75 
#2162018-07-30:-1×MGM 21 Sep 2018 $31.00 P $       144.00 ( $      -350.42 )→ #232$    27,117.05 ➤ $    19,083.05 
#2152018-07-26:-1×MKC 21 Dec 2018 $115.00 P $       353.00 ( $        -20.45 )$    27,323.47 ➤ $    19,289.47 
#2142018-07-20:-2×WSM 16 Nov 2018 $60.00 P $       717.00 ( $            0.00 )$    26,990.92 ➤ $    18,956.92 
#2132018-07-18:-1×HSY 24 Aug 2018 $91.00 P $       229.00 ( $          -0.62 )$    26,273.92 ➤ $    18,239.92 
#2122018-06-20:-2×SBUX 17 Jan 2020 $50.00 P $       915.00 ( $          -2.57 )$    26,045.54 ➤ $    18,011.54 
#2112018-06-20:-1×HSY 20 Jul 2018 $92.00 P $       194.00 ( $        -65.41 )→ #213$    25,133.11 ➤ $    18,014.11 
#2102018-06-20:-3×GIS 17 Jan 2020 $42.50 P $    1,224.00 ( $          -1.49 )$    25,004.52 ➤ $    17,885.52 
#2092018-06-20:  3×GIS 17 Jan 2020 $60.00 C $           0.00 ( $      -235.46 )$    23,782.01 ➤ $    17,887.01 
#2082018-06-14:-2×TGT 19 Oct 2018 $70.00 P $       355.00 ( $        -20.43 )→ #228$    24,017.47 ➤ $    18,122.47 
#2072018-06-14:-3×NKE 19 Oct 2018 $65.00 P $       264.00 ( $        -31.18 )→ #227$    23,682.90 ➤ $    17,787.90 
#2062018-06-14:-20×F 18 Jan 2019 $12.00 C $    1,383.00 ( $      -306.09 )$    23,450.08 ➤ $    17,555.08 
#2052018-06-14:-2×WBA 19 Oct 2018 $70.00 C $       288.00 ( $      -413.80 )→ #245$    22,373.17 ➤ $    16,478.17 
#2042018-06-14:-1×TSM 18 Jan 2019 $45.00 C $         55.00 ( $          -5.67 )$    22,498.97 ➤ $    16,603.97 
#2032018-06-14:-1×TRV 19 Oct 2018 $140.00 C $       124.00 ( $          -1.09 )$    22,449.64 ➤ $    16,554.64 
#2022018-06-14:-2×TJX 19 Oct 2018 $52.50 C $         90.00 ( $      -398.62 )→ #229$    22,326.73 ➤ $    16,431.73 
#2012018-06-14:-2×T 19 Oct 2018 $36.00 C $         94.00 ( $          -1.58 )$    22,635.35 ➤ $    16,740.35 
#2002018-06-14:-1×RDS.B 18 Jan 2019 $80.00 C $       115.00 ( $        -30.67 )$    22,542.93 ➤ $    16,647.93 
#1992018-06-14:-2×PG 19 Oct 2018 $85.00 C $         74.00 ( $      -233.80 )→ #248$    22,458.60 ➤ $    16,563.60 
#1982018-06-14:-1×LOW 18 Jan 2019 $120.00 C $       110.00 ( $        -10.57 )$    22,618.40 ➤ $    16,723.40 
#1972018-06-14:-1×JNJ 21 Dec 2018 $135.00 C $       150.00 ( $      -407.72 )→ #244$    22,518.97 ➤ $    16,623.97 
#1962018-06-14:-2×GILD 16 Nov 2018 $85.00 C $       166.00 ( $        -23.68 )→ #251$    22,776.69 ➤ $    16,881.69 
#1952018-06-14:-2×DIS 19 Oct 2018 $125.00 C $       116.00 ( $          -1.58 )$    22,634.37 ➤ $    16,739.37 
#1942018-06-14:-2×CMCSA 17 Aug 2018 $35.00 C $       164.00 ( $        -85.40 )→ #225$    22,519.95 ➤ $    16,624.95 
#1932018-06-14:-1×BUD 21 Dec 2018 $115.00 C $         85.00 ( $        -12.57 )$    22,441.35 ➤ $    16,546.35 
#1922018-06-14:-1×AAPL 20 Jul 2018 $200.00 C $       122.00 ( $          -1.09 )$    22,368.92 ➤ $    16,473.92 
#1912018-06-12:-2×TPR 20 Jul 2018 $45.00 P $       140.00 ( $          -8.76 )$    22,248.01 ➤ $    16,353.01 
#1902018-06-12:-1×MKC 21 Sep 2018 $100.00 P $       185.00 ( $        -18.36 )→ #215$    22,116.77 ➤ $    16,221.77 
#1892018-06-12:-2×AEO 17 Aug 2018 $24.00 P $       180.00 ( $          -9.17 )$    21,950.13 ➤ $    16,055.13 
#1882018-05-24:-2×WSM 17 Aug 2018 $47.50 P $       240.00 ( $        -12.08 )→ #214$    21,779.30 ➤ $    15,884.30 
#1872018-05-24:-4×TJX 19 Oct 2018 $41.25 P $       380.00 ( $        -17.28 )→ #230$    21,551.38 ➤ $    15,656.38 
#1862018-05-24:-2×TGT 20 Jul 2018 $67.50 P $       224.00 ( $        -32.79 )→ #208$    21,188.66 ➤ $    15,293.66 
#1852018-05-24:-2×HSY 15 Jun 2018 $91.00 P $       236.00 ( $          -0.74 )$    20,997.45 ➤ $    15,102.45 
#1842018-05-11:-1×WMT 21 Jun 2019 $82.50 P $       667.00 ( $          -0.64 )$    20,762.19 ➤ $    14,867.19 
#1832018-05-11:-1×VLO 17 Jan 2020 $90.00 C $    2,935.00 ( $      -701.77 )$    20,095.83 ➤ $    14,867.83 
#1822018-05-11:-1×PG 17 Jan 2020 $72.50 P $       633.00 ( $      -179.71 )$    17,862.60 ➤ $    12,634.60 
#1812018-05-11:-1×MO 21 Jul 2019 $55.00 P $       579.00 ( $          -0.63 )$    17,409.31 ➤ $    12,181.31 
#1802018-05-11:-3×GPS 21 Dec 2018 $29.00 P $       912.00 ( $      -886.90 )→ #255$    16,830.94 ➤ $    12,181.94 
#1792018-05-11:-2×DIS 17 Jan 2020 $100.00 P $    1,845.00 ( $          -1.15 )$    16,805.84 ➤ $    12,156.84 
#1782018-05-11:  2×DIS 17 Jan 2020 $130.00 C $           0.00 ( $      -712.11 )$    14,961.99 ➤ $    12,157.99 
#1772018-04-20:-3×GLW 18 Jan 2019 $27.00 P $       618.00 ( $      -102.32 )$    15,674.10 ➤ $    12,870.10 
#1762018-04-20:-1×PG 18 Jan 2019 $77.50 P $       627.00 ( $      -672.25 )→ #182$    15,158.42 ➤ $    12,354.42 
#1752018-04-20:-1×MO 20 Jul 2018 $60.00 P $       438.00 ( $      -505.25 )→ #181$    15,203.67 ➤ $    12,399.67 
#1742018-04-20:-3×KBH 18 Jan 2019 $30.00 P $    1,494.00 ( $          -1.46 )$    15,270.92 ➤ $    12,466.92 
#1732018-04-06:-1×WMT 18 May 2018 $87.50 P $       304.00 ( $      -508.25 )→ #184$    13,778.38 ➤ $    10,974.38 
#1722018-04-06:-2×DIS 18 May 2018 $110.00 C $       116.00 ( $          -1.38 )$    13,982.63 ➤ $    11,178.63 
#1712018-03-23:-3×XLRE 18 May 2018 $29.00 P $       120.00 ( $          -0.18 )$    13,868.01 ➤ $    11,064.01 
#1702018-03-23:-2×APC 18 May 2018 $57.50 P $       290.00 ( $          -0.99 )$    13,748.19 ➤ $    10,944.19 
#1692018-03-22:-3×PFE 18 May 2018 $34.00 P $       141.00 ( $          -1.47 )$    13,459.18 ➤ $    10,655.18 
#1682018-03-22:-3×GPS 18 May 2018 $31.00 P $       447.00 ( $      -551.90 )→ #180$    13,319.65 ➤ $    10,515.65 
#1672018-03-14:-6×WEN 18 May 2018 $16.00 P $       270.00 ( $          -0.25 )$    13,424.55 ➤ $    10,620.55 
#1662018-03-14:-2×STLD 18 May 2018 $46.00 P $       410.00 ( $          -0.69 )$    13,154.80 ➤ $    10,350.80 
#1652018-03-14:-1×RS 20 Apr 2018 $87.50 P $       170.00 ( $          -0.34 )$    12,745.49 ➤ $      9,941.49 
#1642018-03-14:-3×PFE 15 Jun 2018 $34.00 P $       150.00 ( $          -1.47 )$    12,575.83 ➤ $      9,771.83 
#1632018-03-14:10×NEE 20 Apr 2018 $150.00 P $           0.00 ( $   -1,055.63 )$    12,427.30 ➤ $      9,623.30 
#1622018-03-14:-10×NEE 20 Apr 2018 $155.00 P $    2,153.00 ( $          -5.70 )$    13,482.93 ➤ $    10,678.93 
#1612018-03-14:-2×KMB 17 Jan 2020 $100.00 P $    1,503.00 ( $          -0.11 )$    11,335.63 ➤ $      8,531.63 
#1602018-03-14:  2×KMB 17 Jan 2020 $135.00 C $           0.00 ( $      -783.14 )$      9,832.74 ➤ $      8,531.74 
#1592018-03-14:-2×HOG 18 May 2018 $40.00 P $       186.00 ( $          -0.98 )$    10,615.88 ➤ $      9,314.88 
#1582018-03-14:-3×GLW 20 Apr 2018 $29.00 P $       141.00 ( $      -465.32 )→ #177$    10,430.86 ➤ $      9,129.86 
#1572018-03-14:-1×BUD 18 May 2018 $105.00 P $       200.00 ( $          -0.79 )$    10,755.18 ➤ $      9,454.18 
#1562018-02-26:-2×ABBV 17 Jan 2020 $100.00 C $    5,508.00 ( $      -822.21 )$    10,555.97 ➤ $      9,254.97 
#1552018-02-26:-1×WMT 06 Apr 2018 $90.00 P $       130.00 ( $      -221.61 )→ #173$      5,870.18 ➤ $      4,569.18 
#1542018-02-26:-1×LOW 20 Apr 2018 $92.50 P $       196.00 ( $          -0.79 )$      5,961.79 ➤ $      4,660.79 
#1532018-02-26:  5×HD 20 Apr 2018 $185.00 P $           0.00 ( $   -4,827.70 )$      5,766.58 ➤ $      4,465.58 
#1522018-02-26:-5×HD 20 Apr 2018 $190.00 P $    3,450.00 ( $          -2.79 )$    10,594.28 ➤ $      9,293.28 
#1512018-02-23:-2×SBUX 18 May 2018 $52.50 P $       194.00 ( $          -0.98 )$      7,147.07 ➤ $      5,846.07 
#1502018-02-23:-1×PG 20 Apr 2018 $80.00 P $       171.00 ( $      -562.41 )→ #176$      6,954.05 ➤ $      5,653.05 
#149b2018-02-23:-1×MO 20 Apr 2018 $60.00 P $         72.00 ( $      -267.16 )→ #175$      7,345.46 ➤ $      6,044.46 
#149a2018-02-23:-1×MO 20 Apr 2018 $60.00 P $         72.00 ( $          -0.54 )$      7,540.62 ➤ $      6,239.62 
#1482018-02-23:-2×HRL 15 Jun 2018 $32.50 P $       304.00 ( $          -0.01 )$      7,469.16 ➤ $      6,168.16 
#1472018-02-23:-2×EEM 18 May 2018 $46.00 P $       156.00 ( $          -2.42 )$      7,165.17 ➤ $      5,864.17 
#1462018-02-23:-2×DIS 06 Apr 2018 $112.00 C $       142.00 ( $          -0.74 )$      7,011.59 ➤ $      5,710.59 
#1452018-02-23:-3×BAC 18 May 2018 $29.00 P $       150.00 ( $          -1.47 )$      6,870.33 ➤ $      5,569.33 
#1442018-02-23:-2×AAPL 18 May 2018 $155.00 P $       374.00 ( $          -2.43 )$      6,721.80 ➤ $      5,420.80 
#1432018-02-16:-3×NKE 20 Jul 2018 $60.00 P $       441.00 ( $        -20.73 )→ #207$      6,350.23 ➤ $      5,049.23 
#1422018-02-16:-2×GILD 15 Jun 2018 $85.00 C $       678.00 ( $        -11.15 )$      5,929.96 ➤ $      4,628.96 
#1412018-01-12:  6×WYNN 16 Mar 2018 $155.00 P $           0.00 ( $   -2,708.04 )$      5,263.11 ➤ $      3,962.11 
#1402018-01-12:-6×WYNN 16 Mar 2018 $160.00 P $    3,791.00 ( $          -3.14 )$      7,971.15 ➤ $      6,670.15 
#1392018-01-12:  6×RL 20 Apr 2018 $100.00 P $           0.00 ( $   -2,427.25 )$      4,183.29 ➤ $      2,882.29 
#1382018-01-12:-6×RL 20 Apr 2018 $105.00 P $    3,566.00 ( $          -3.34 )$      6,610.54 ➤ $      5,309.54 
#1372018-01-12:  8×JPM 16 Mar 2018 $105.00 P $           0.00 ( $      -842.23 )$      3,047.88 ➤ $      1,746.88 
#1362018-01-12:-8×JPM 16 Mar 2018 $110.00 P $    1,864.00 ( $        -10.29 )$      3,890.11 ➤ $      2,589.11 
#1352018-01-12:-3×KSS 16 Mar 2018 $55.00 P $       405.00 ( $          -0.14 )$      2,036.40 ➤ $         735.40 
#134c2018-01-11:-1×QCOM 17 Jan 2020 $65.00 C $       785.00 ( $          -0.51 )$      1,631.54 ➤ $         330.54 
#134b2018-01-11:-2×QCOM 17 Jan 2020 $65.00 C $    1,570.00 ( $      -756.60 )$         847.05 ➤ $         331.05 
#134a2018-01-10:-1×QCOM 17 Jan 2020 $65.00 C $       785.00 ( $   -1,101.29 )$           33.65 ➤ $       -482.35 
#1332018-01-10:-20×F 17 Jan 2020 $12.00 C $    3,720.00 ( $   -2,558.96 )→ #206$         349.94 ➤ $       -166.06 
#1322018-01-10:-2×KO 18 Jan 2019 $47.00 C $       414.00 ( $      -109.56 )$       -811.10 ➤ $     -1,327.10 
#1312018-01-10:-3×TGT 16 Mar 2018 $60.00 P $       144.00 ( $          -1.48 )$     -1,115.54 ➤ $     -1,631.54 
#1302018-01-10:-3×KBH 20 Apr 2018 $31.00 P $       306.00 ( $   -1,283.91 )→ #174$     -1,258.06 ➤ $     -1,774.06 
#1292018-01-10:-2×FAST 18 May 2018 $50.00 P $       350.00 ( $            0.00 )$       -280.15 ➤ $       -796.15 
#1282018-01-10:-1×AXP 20 Apr 2018 $100.00 P $       330.00 ( $          -0.80 )$       -630.15 ➤ $     -1,146.15 
#1272017-11-30:-2×EEM 19 Jan 2018 $46.00 P $       234.00 ( $          -0.85 )$       -959.35 ➤ $     -1,475.35 
#1262017-11-30:-2×BBT 16 Mar 2018 $50.00 P $       130.00 ( $          -0.98 )$     -1,192.50 ➤ $     -1,708.50 
#1252017-11-21:-3×X 19 Jan 2018 $26.00 P $       252.00 ( $          -2.09 )$     -1,321.52 ➤ $     -1,837.52 
#1242017-11-21:-2×RL 19 Jan 2018 $80.00 P $       150.00 ( $          -0.09 )$     -1,571.43 ➤ $     -2,087.43 
#1232017-11-21:-3×BAC 19 Jan 2018 $25.00 P $       120.00 ( $          -2.23 )$     -1,721.34 ➤ $     -2,237.34 
#1222017-11-17:-1×VLO 18 Jan 2019 $80.00 C $       892.00 ( $   -3,535.26 )→ #183$     -1,839.11 ➤ $     -2,355.11 
#1212017-11-17:-3×NKE 20 Apr 2018 $50.00 P $       208.00 ( $        -31.15 )→ #143$         804.15 ➤ $         288.15 
#1202017-11-17:-2×AAPL 16 Feb 2018 $150.00 P $       376.00 ( $          -1.60 )$         627.30 ➤ $         111.30 
#1192017-11-17:-2×WBA 15 Dec 2017 $70.00 P $       244.00 ( $          -0.99 )$         252.90 ➤ $       -263.10 
#1182017-11-17:-2×TXN 16 Mar 2018 $85.00 P $       200.00 ( $          -0.99 )$             9.89 ➤ $       -506.11 
#1172017-11-17:-2×MO 19 Jan 2018 $62.50 P $       140.00 ( $          -0.99 )$       -189.12 ➤ $       -705.12 
#116b2017-10-20:-1×INTC 17 Jan 2020 $40.00 C $       516.00 ( $   -1,691.18 )$       -328.13 ➤ $       -844.13 
#116a2017-10-20:-1×INTC 17 Jan 2020 $40.00 C $       516.00 ( $          -0.51 )$         847.04 ➤ $         331.04 
key:  expired  •  closed  •  rolled  •  assigned  •  open 

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

Goal Review


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


Total
Options Income
Secured
Options Income
This Month:
$ 42,793
$    17,659
Last Month:
$ 39,205
$    17,322
Difference:
 $   3,588 
$         337

Unfortunately, I failed to achieve my 2018 goal of securing $12,000 in options income. 

I started 2018 with secured options income totaling $11,420. At the end of 2018, I secured options income totaling $17,659. That means I secured only $6,239 of my goal of $12,000, or only 52% of my secured options income goal for 2018. 

On the other hand, I started 2018 with an options income total of $20,264, boosting it to $42,793 at year's end. That's $22,529 of "borrowed" money that I could use to buy more dividend-paying stocks!

My high expectations for options income in 2018 did not quite materialize, as increased volatility made options trading (and securing options income) somewhat trickier.

So, in 2019 I'm setting an options income goal rather than a secure options income goal (which is harder to control). I hope to collect $21,000 in options income this year. I think this goal is quite doable, seeing that I added more than $22,000 to my options income tally in 2018.

The goal doesn't appear to be a stretching goal, but I want to be a little bit more conservative this year, given the increased market volatility. I can always adjust my goal upwards if things go well.

Concluding Remarks


My defensive trades in December cost me most of the options income I secured in December. Fortunately, in return, I boosted my options income tally significantly — so I'm happy with the overall performance of my options trading in 2018.

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