Wednesday, April 3, 2019

Options Update: March 2019

March was another busy month for options trading. I collected nearly $2,500 in options income this month and I'm happy to report that I'm now ahead of pace as far as my options income goal for 2019 is concerned.

As usual, this article will cover options transactions I executed this month, and I'll summarize the options that will expire in April and May. I'll conclude with the usual running tally of options income received versus options income secured.

Recap


I made up lost ground in February by selling several covered calls and put options, and rolling some options forward as well. March was another busy options trading month, with one expiration, two covered calls, three secured puts, a few transactions in which I closed or rolled forward options.

Below is a snapshot showing these trades:


Assigned Options


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

After no fewer than four assignments in February, I'm happy to say there were no assignments in March.

Expired Options


In March, the following option expired:

#2832018-12-06:-1×VLO 15 Mar 2019 $90.00 C $ 165.00 ( $ -0.79 )

On 15 March, Valero Energy (VLO) closed at $85.08 per share, below the $90 strike price of the January calls I'd sold. So the calls expired and I no longer have the obligation to sell 100 VLO shares.

I secured options income of $164 with this trade.

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 option early:

#2972019-01-16:-1×AAPL 18 Apr 2019 $155.00 P $ 809.00 ( $ -12.18 )

On 26 March, Apple (AAPL) traded around $186 per share. The $155 put I'd sold was deep out of the money and I decided to buy back the put. Closing the option early secured 98% of the available options income. The trade netted $796.82.

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 options this month:

#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $ 151.00 ( $   -0.64 )
#2872018-12-06:-1×XOM 18 Apr 2019 $85.00 C $ 126.00 ( $   -7.73 )→ #333
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $ 173.00 ( $   -0.83 )
#2722018-12-06:-2×PFE 21 Jun 2019 $50.00 C $ 154.00 ( $   -6.40 )→ #332
#3312019-03-27:-2×DGX 16 Aug 2019 $95.00 C $ 341.00 ( $   -1.67 )
#2952018-12-28:-1×DGX 17 May 2019 $100.00 C $   62.00 
( $ -16.09 )
→ #331
#2602018-12-06:-1×DGX 17 May 2019 $100.00 C $ 135.00 
 ( $ -16.17 )
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $ 264.00 ( $   -0.84 )
#2572018-12-06:-2×ABBV 17 May 2019 $100.00 C $ 500.00 ( $ -14.01 )→ #330
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $ 492.00 ( $   -0.55 )
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $ 170.00 ( $ -68.73 )→ #329

With Exxon Mobil 
(XOM) trading just above $80 on 27 March, the covered call I'd sold on XOM was out of the money. I decided to roll forward the option to September 2019 and earn extra income. Doing so secured $118 in options income and I collected another $150 for selling the September $80 call.

Also on 27 March, Pfizer (PFE) trade at around $42 per share, significantly below the $50 strike price of the June calls I'd sold. I decided to roll forward the covered call to September and simultaneously to lower the strike price to $45. This secured $148 in options income and I collected another $172 for selling the September calls. 

Quest Diagnostics (DGX) traded below $89 per share on 27 March, making the May $100 calls I'd sold deep out of the money. I decided to roll forward the options to August, simultaneously lowering the strike price to $95. I secured $165 in options income and collected another $339 for selling the August calls.

AbbVie (ABBV)'s share price dropped below $80 on 27 March, so I decided to roll forward my May $100 covered calls to August, simultaneously lowering the strike price to $90. Doing so secured $486 in options income and I added another $263 to DivGro's options income tally.

Finally, on 27 March, I decided to roll forward my put option on Apple (AAPL) and simultaneously to increase the strike price to $170. The trade netted $101 in secured options income and I received $491 for selling the $170 put expiring on 16 August 2019.

Covered Calls


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

I sold the following covered calls in March:

#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $ 114.00 ( $ -0.79 )
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $ 314.00 ( $ -0.99 )

#328 : 2019-03-25: Sold to Open 1 Contract of Option VLO Jun 21 2019 95.00 C

I own 100 shares of Valero Energy (VLO) at a cost basis of $63.54 per share. I'm willing to sell these shares for $95.00 on or before 21 June:

Open Date :  2019-03-25
Expiration Date :  2019-06-21    Number of Days in Trade : 88
Cost Basis :  $63.54 per shareGain at Strike Price : 49.51%
Strike Price :  $95.00 per share
Number of Contracts : 1Number of Shares :100
Call Premium :  $1.14 per shareOptions Income : $114.00
Commission : -$0.79
Net Premium :  $1.132 per shareNet Options Income : $113.21
Options Yield :  1.78%Annualized Options Yield : 7.40%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $62.39Gain if Exercised : 52.26%

This covered call yields 1.78%, or 7.40% on an annualized basis. The yield on cost of my VLO position is 5.67%, so I'm boosting dividend income by a factor of 1.31. If the option is exercised, I'll sell 100 shares of VLO at a reduced cost basis of $62.39 per share, for capital gains of 52.26%.


#325 : 2019-03-25: Sold to Open 2 Contracts of Option GILD Aug 16 2019 70.00 C

I own 200 shares of Gilead Sciences (GILD) at a cost basis of $70.64 per share. I'm willing to sell these shares for $70.00 on or before 16 August:

Open Date :  2019-03-25
Expiration Date :  2019-08-16    Number of Days in Trade : 144
Cost Basis :  $70.64 per shareGain at Strike Price : -0.91%
Strike Price :  $70.00 per share
Number of Contracts : 2Number of Shares :200
Call Premium :  $1.57 per shareOptions Income : $314.00
Commission : -$0.99
Net Premium :  $1.565 per shareNet Options Income : $313.01
Options Yield :  2.22%Annualized Options Yield : 5.62%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $69.07Gain if Exercised : 1.35%

This covered call yields 2.22%, or 5.62% on an annualized basis. The yield on cost of my GILD position is 3.57%, so I'm boosting dividend income by a factor of 1.58. If the options are exercised, I'll sell 200 shares of GILD at a reduced cost basis of $69.07 per share, for capital gains of 1.35%.


For covered calls, I think an achievable goal is to earn double the dividend yield. Unfortunately, neither of these covered call trade achieves this goal. I'm satisfied that I'll collect capital gains should  these call options be exercised.


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 March:


#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $ 224.00 ( $ -0.79 )
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $ 220.00 ( $ -0.84 )
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $ 295.00 ( $ -0.79 )

#327 : 2019-03-25: Sold to Open 1 Contract of Option VLO May 17 2019 80.00 P

I'm willing to buy 100 shares of Valero Energy (VLO) for $80.00 per share on or before 17 May. VLO closed at $85.48 per share on the date of my trade:


Open Date :  2019-03-25
Expiration Date :  2019-05-17    Number of Days in Trade : 53
Price at Close :  $85.48 per shareDiscount at Strike Price : 6.41%
Strike Price :  $80.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $2.24 per shareOptions Income : $224.00
Commission : -$0.79
Net Premium :  $2.232 per shareNet Options Income : $223.21
Options Yield :  2.61%Annualized Options Yield : 18.00%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $77.75Discount if Exercised : 9.04%

This put option trade yields 2.61%, or 18.00% on an annualized basis. At $85.48 per share, VLO yields 4.21%, so I'm boosting dividend income by a factor of 4.27. If the option is exercised, I'll buy 100 shares at a cost basis of $77.75 per share, a discount of 9.04%.


#326 : 2019-03-25: Sold to Open 1 Contract of Option TIF May 17 2019 100.00 P

I'm willing to buy 100 shares of Tiffany (TIF) for $100.00 per share on or before 17 May. TIF closed at $102.80 per share on the date of my trade:

Open Date :  2019-03-25
Expiration Date :  2019-05-17    Number of Days in Trade : 53
Price at Close :  $102.80 per shareDiscount at Strike Price : 2.72%
Strike Price :  $100.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $2.20 per shareOptions Income : $220.00
Commission : -$0.84
Net Premium :  $2.192 per shareNet Options Income : $219.16
Options Yield :  2.13%Annualized Options Yield : 14.69%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $97.79Discount if Exercised : 4.87%

This put option trade yields 2.13%, or 14.69% on an annualized basis. At $102.80 per share, TIF yields 2.14%, so I'm boosting dividend income by a factor of 6.87. If the option is exercised, I'll buy 100 shares at a cost basis of $97.79 per share, a discount of 4.87%.


#324 : 2019-03-25: Sold to Open 1 Contract of Option DIS Jun 21 2019 105.00 P

I'm willing to buy 100 shares of Walt Disney (DIS) for $105.00 per share on or before 21 June. DIS closed at $107.79 per share on the date of my trade:

Open Date :  2019-03-25
Expiration Date :  2019-06-21    Number of Days in Trade : 88
Price at Close :  $107.79 per shareDiscount at Strike Price : 2.59%
Strike Price :  $105.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $2.95 per shareOptions Income : $295.00
Commission : -$0.79
Net Premium :  $2.942 per shareNet Options Income : $294.21
Options Yield :  2.73%Annualized Options Yield : 11.33%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $102.04Discount if Exercised : 5.33%

This put option trade yields 2.73%, or 11.33% on an annualized basis. At $107.79 per share, DIS yields 1.63%, so I'm boosting dividend income by a factor of 6.94. If the option is exercised, I'll buy 100 shares at a cost basis of $102.04 per share, a discount of 5.33%.


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%.Two of these put options trades achieve my boost factor goal, while the third just misses the discount target with potential return of 9%.

Options Income Tally


IDDATE:NO×TICKER OPTIONINCOME( EXPENSES )ROLLEDTOTAL➤ SECURED
#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $       151.00 ( $          -0.64 )$    48,848.15 ➤ $    23,877.15 
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $       173.00 ( $          -0.83 )$    48,697.79 ➤ $    23,877.79 
#3312019-03-27:-2×DGX 16 Aug 2019 $95.00 C $       341.00 ( $          -1.67 )$    48,525.62 ➤ $    23,878.62 
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $       264.00 ( $          -0.84 )$    48,186.29 ➤ $    23,880.29 
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $       492.00 ( $          -0.55 )$    47,923.13 ➤ $    23,881.13 
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $       114.00 ( $          -0.79 )$    47,431.68 ➤ $    23,881.68 
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $       224.00 ( $          -0.79 )$    47,318.47 ➤ $    23,882.47 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $       220.00 ( $          -0.84 )$    47,095.26 ➤ $    23,883.26 
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $       314.00 ( $          -0.99 )$    46,876.10 ➤ $    23,884.10 
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $       295.00 ( $          -0.79 )$    46,563.09 ➤ $    23,885.09 
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $       105.00 ( $          -1.52 )$    46,268.88 ➤ $    23,885.88 
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $       294.00 ( $          -2.59 )$    46,165.40 ➤ $    23,887.40 
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $       170.00 ( $        -68.73 )→ #329$    45,873.99 ➤ $    23,889.99 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $       220.00 ( $          -1.09 )$    45,772.72 ➤ $    23,788.72 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $       130.00 ( $          -0.08 )$    45,553.81 ➤ $    23,789.81 
#3182019-02-22:-3×SKT 17 Jan 2020 $25.00 C $       195.00 ( $          -0.12 )$    45,423.89 ➤ $    23,789.89 
#3172019-02-22:-1×PM 17 Jan 2020 $105.00 C $         95.00 ( $          -0.79 )$    45,229.01 ➤ $    23,790.01 
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $       287.00 ( $          -1.09 )$    45,134.80 ➤ $    23,790.80 
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $          -1.10 )$    44,848.89 ➤ $    23,791.89 
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $          -1.10 )$    44,401.99 ➤ $    23,792.99 
#3132019-02-22:  2×KO 17 Jan 2020 $52.50 C $         67.00 ( $          -1.58 )$    43,955.09 ➤ $    23,794.09 
#3122019-02-22:-2×INTC 18 Oct 2019 $55.00 C $       670.00 ( $          -1.59 )$    43,889.67 ➤ $    23,795.67 
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $       250.00 ( $          -0.79 )$    43,221.26 ➤ $    23,797.26 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $       209.00 ( $          -1.09 )$    42,972.05 ➤ $    23,798.05 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $          -0.79 )$    42,764.14 ➤ $    23,799.14 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $          -3.16 )$    42,712.93 ➤ $    23,799.93 
#3072019-02-20:-2×ADM 20 Sep 2019 $45.00 C $       234.00 ( $          -0.98 )$    42,503.09 ➤ $    23,803.09 
#3062019-02-07:-1×IP 17 Jan 2020 $47.50 C $       337.00 ( $          -1.09 )$    42,270.07 ➤ $    23,804.07 
#3052019-02-07:-1×INTC 14 Jan 2021 $50.00 C $       679.00 ( $          -1.10 )$    41,934.16 ➤ $    23,805.16 
#3042019-02-07:-1×AAPL 17 Jan 2020 $180.00 C $    1,380.00 ( $          -1.11 )$    41,256.26 ➤ $    23,806.26 
#3032019-01-24:-1×WSM 15 Feb 2019 $55.00 C $         42.00 ( $          -1.09 )$    39,877.37 ➤ $    23,807.37 
#3022019-01-24:-19×F 17 Jan 2020 $10.00 C $       722.00 ( $        -15.25 )$    39,836.46 ➤ $    23,766.46 
#3012019-01-24:-1×F 17 Jan 2020 $10.00 C $         36.00 ( $          -1.58 )$    39,129.71 ➤ $    23,781.71 
#3002019-01-24:-1×AFL 15 Jan 2021 $50.00 C $       420.00 ( $          -1.09 )$    39,095.29 ➤ $    23,783.29 
#2992019-01-24:-1×AAPL 18 Apr 2019 $170.00 C $       244.00 ( $      -812.18 )→ #304$    38,676.38 ➤ $    23,784.38 
#2982019-01-16:-1×MO 17 Jan 2020 $47.50 P $       515.00 ( $      -336.18 )→ #314$    39,244.56 ➤ $    24,352.56 
#2972019-01-16:-1×AAPL 18 Apr 2019 $155.00 P $       809.00 ( $        -12.18 )$    39,065.74 ➤ $    24,173.74 
#2962018-12-28:-1×JPM 15 Feb 2019 $105.00 C $       154.00 ( $          -1.09 )$    38,268.92 ➤ $    23,376.92 
#2952018-12-28:-1×DGX 17 May 2019 $100.00 C $         62.00 ( $        -16.09 )→ #331$    38,116.01 ➤ $    23,224.01 
#2942018-12-27:-1×WSM 15 Feb 2019 $55.00 C $         75.00 ( $          -0.34 )$    38,070.10 ➤ $    23,178.10 
#2932018-12-27:-1×JPM 15 Feb 2019 $105.00 C $         98.00 ( $          -1.09 )$    37,995.44 ➤ $    23,178.44 
#2922018-12-27:-1×IP 15 Feb 2019 $42.50 C $       105.00 ( $      -378.18 )→ #306$    37,898.53 ➤ $    23,179.53 
#2912018-12-21:-2×ADM 15 Mar 2019 $45.00 P $       851.00 ( $          -1.58 )$    38,171.71 ➤ $    23,452.71 
#2902018-12-14:-2×MO 21 Jun 2019 $60.00 C $       230.00 ( $          -1.58 )$    37,322.29 ➤ $    22,603.29 
#2892018-12-14:-1×MO 18 Jan 2019 $52.50 P $       181.00 ( $      -517.87 )→ #298$    37,093.87 ➤ $    22,604.87 
#2882018-12-14:-1×AAPL 18 Jan 2019 $160.00 P $       375.00 ( $      -507.87 )→ #297$    37,430.74 ➤ $    22,941.74 
#2872018-12-06:-1×XOM 18 Apr 2019 $85.00 C $       126.00 ( $          -7.73 )→ #333$    37,563.61 ➤ $    23,074.61 
#2862018-12-06:-2×WSM 15 Feb 2019 $60.00 C $       300.00 ( $        -71.57 )$    37,445.34 ➤ $    22,956.34 
#2852018-12-06:-2×WBA 15 Jan 2021 $85.00 C $    2,074.00 ( $          -2.20 )$    37,216.91 ➤ $    22,727.91 
#2842018-12-06:-1×VYM 18 Jan 2019 $85.00 C $         80.00 ( $          -0.34 )$    35,145.11 ➤ $    22,730.11 
#2832018-12-06:-1×VLO 15 Mar 2019 $90.00 C $       165.00 ( $          -0.79 )$    35,065.45 ➤ $    22,650.45 
#2822018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         60.00 ( $          -0.34 )$    34,901.24 ➤ $    22,486.24 
#2812018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         64.00 ( $          -1.09 )$    34,841.58 ➤ $    22,486.58 
#2802018-12-06:-1×TRV 18 Apr 2019 $140.00 C $       100.00 ( $          -0.34 )$    34,778.67 ➤ $    22,487.67 
#2792018-12-06:-1×TROW 18 Apr 2019 $110.00 C $       115.00 ( $        -17.43 )→ #320$    34,679.01 ➤ $    22,488.01 
#2782018-12-06:-4×TJX 17 Jan 2020 $45.00 P $    1,746.00 ( $          -4.00 )$    34,581.44 ➤ $    22,390.44 
#2772018-12-06:-4×T 21 Jun 2019 $35.00 C $       128.00 ( $        -46.58 )→ #308$    32,839.44 ➤ $    22,394.44 
#2762018-12-06:-1×SBUX 15 Feb 2019 $70.00 C $       132.00 ( $          -0.79 )$    32,758.02 ➤ $    22,313.02 
#2752018-12-06:-1×ROST 17 May 2019 $100.00 C $         85.00 ( $          -1.94 )$    32,626.81 ➤ $    22,181.81 
#2742018-12-06:-1×PM 18 Jan 2019 $80.00 P $       160.00 ( $          -0.79 )$    32,543.75 ➤ $    22,183.75 
#2732018-12-06:-2×PG 15 Jan 2021 $95.00 C $    1,560.00 ( $          -1.59 )$    32,384.54 ➤ $    22,024.54 
#2722018-12-06:-2×PFE 21 Jun 2019 $50.00 C $       154.00 ( $          -6.40 )→ #332$    30,826.13 ➤ $    22,026.13 
#2712018-12-06:-2×O 21 Jun 2019 $70.00 C $       188.00 ( $            0.00 )$    30,678.53 ➤ $    21,878.53 
#2702018-12-06:-1×MSFT 15 Mar 2019 $125.00 C $       115.00 ( $          -3.88 )→ #316$    30,490.53 ➤ $    21,878.53 
#2692018-12-06:-5×MAIN 21 Jun 2019 $40.00 C $       250.00 ( $          -0.18 )$    30,379.41 ➤ $    21,767.41 
#2682018-12-06:-1×LOW 21 Jun 2019 $120.00 C $         67.00 ( $          -0.79 )$    30,129.59 ➤ $    21,767.59 
#2672018-12-06:-4×KRG 17 May 2019 $20.00 C $         60.00 ( $        -36.00 )$    30,063.38 ➤ $    21,768.38 
#2662018-12-06:-2×KO 17 May 2019 $52.50 C $       154.00 ( $          -7.75 )→ #313$    30,039.38 ➤ $    21,744.38 
#2652018-12-06:-3×KBH 19 Jul 2019 $26.00 C $       309.00 ( $      -279.81 )$    29,893.13 ➤ $    21,598.13 
#2642018-12-06:-1×JPM 18 Jan 2019 $110.00 C $       146.00 ( $        -10.17 )→ #293$    29,863.94 ➤ $    21,568.94 
#2632018-12-06:-2×INTC 15 Feb 2019 $55.00 C $       106.00 ( $          -2.53 )$    29,728.11 ➤ $    21,433.11 
#2622018-12-06:-1×HRL 21 Jun 2019 $50.00 C $       110.00 ( $          -0.34 )$    29,624.64 ➤ $    21,329.64 
#2612018-12-06:-1×ES 19 Jul 2019 $70.00 C $       270.00 ( $          -0.34 )$    29,514.98 ➤ $    21,329.98 
#2602018-12-06:-1×DGX 17 May 2019 $100.00 C $       135.00 ( $        -16.17 )→ #331$    29,245.32 ➤ $    21,330.32 
#2592018-12-06:-1×D 19 Jul 2019 $80.00 C $       130.00 ( $          -0.34 )$    29,126.49 ➤ $    21,211.49 
#2582018-12-06:-1×AFL 17 May 2019 $45.00 C $       160.00 ( $      -371.87 )→ #300$    28,996.83 ➤ $    21,211.83 
#2572018-12-06:-2×ABBV 17 May 2019 $100.00 C $       500.00 ( $        -14.01 )→ #330$    29,208.70 ➤ $    21,423.70 
#2562018-12-06:-1×AAPL 15 Feb 2019 $200.00 C $       167.00 ( $          -4.87 )→ #299$    28,722.71 ➤ $    20,937.71 
#2552018-11-01:-3×GPS 21 Jun 2019 $27.00 P $    1,004.00 ( $          -1.47 )$    28,560.58 ➤ $    20,775.58 
#2542018-11-01:-2×FL 15 Feb 2019 $45.00 P $       660.00 ( $        -13.22 )$    27,558.05 ➤ $    20,777.05 
#2532018-11-01:-2×CMCSA 21 Jun 2019 $42.50 C $       320.00 ( $          -1.28 )$    26,911.27 ➤ $    20,130.27 
#2522018-10-29:-1×IP 21 Dec 2018 $42.50 P $       162.00 ( $          -0.79 )$    26,592.55 ➤ $    20,131.55 
#2512018-10-25:-3×GILD 18 Jan 2019 $80.00 C $       304.00 ( $        -63.51 )$    26,431.34 ➤ $    19,970.34 
#250b2018-10-24:-1×F 15 Mar 2019 $10.00 C $         19.00 ( $          -6.60 )→ #301$    26,190.85 ➤ $    19,729.85 
#250a2018-10-24:-9×F 15 Mar 2019 $10.00 C $       171.00 ( $      -142.35 )$    26,178.45 ➤ $    19,717.45 
#2492018-10-23:-1×TSM 18 Jan 2019 $40.00 C $       114.00 ( $        -37.17 )→ #282$    26,149.80 ➤ $    19,688.80 
#2482018-10-19:-2×PG 18 Jan 2019 $85.00 C $       695.00 ( $   -1,622.40 )→ #273$    26,072.97 ➤ $    19,611.97 
#2472018-10-19:-3×NKE 18 Jan 2019 $70.00 P $       558.00 ( $          -3.84 )$    27,000.37 ➤ $    20,539.37 
#2462018-10-19:-10×F 15 Mar 2019 $10.00 C $       160.00 ( $      -160.61 )$    26,446.21 ➤ $    19,985.21 
#2452018-10-12:-2×WBA 18 Jan 2019 $72.50 C $       615.00 ( $   -2,046.00 )→ #285$    26,446.82 ➤ $    19,985.82 
#2442018-10-12:-1×JNJ 17 Jan 2020 $150.00 C $       518.00 ( $          -0.64 )$    27,877.82 ➤ $    21,416.82 
#2432018-10-12:-2×ALK 18 Apr 2019 $62.50 P $    1,106.00 ( $      -521.75 )$    27,360.46 ➤ $    21,417.46 
#2422018-10-12:-2×XEL 21 Dec 2018 $45.00 P $       120.00 ( $        -18.00 )$    26,776.21 ➤ $    20,833.21 
#2412018-10-12:-1×VZ 16 Nov 2018 $52.50 P $       115.00 ( $        -10.87 )$    26,674.21 ➤ $    20,731.21 
#2402018-10-12:-2×TSM 16 Nov 2018 $36.00 P $       100.00 ( $          -1.57 )$    26,570.08 ➤ $    20,627.08 
#2392018-10-12:-2×SBUX 17 Jan 2020 $55.00 P $       966.00 ( $          -0.84 )$    26,471.65 ➤ $    20,528.65 
#2382018-10-12:  2×SBUX 17 Jan 2020 $75.00 C $           0.00 ( $      -186.82 )$    25,506.49 ➤ $    20,529.49 
#2372018-10-12:-2×HRL 21 Dec 2018 $37.50 P $       160.00 ( $        -18.60 )$    25,693.31 ➤ $    20,716.31 
#2362018-10-12:-2×AFL 18 Jan 2019 $42.50 P $       252.00 ( $        -20.15 )$    25,551.91 ➤ $    20,574.91 
#2352018-10-02:-5×FLO 16 Nov 2018 $17.50 P $       150.00 ( $        -46.51 )$    25,320.06 ➤ $    20,343.06 
#2342018-10-02:-2×FL 16 Nov 2018 $50.00 P $       620.00 ( $      -599.68 )→ #254$    25,216.57 ➤ $    20,239.57 
#2332018-10-02:-2×ALK 21 Dec 2018 $65.00 P $       570.00 ( $   -1,047.73 )→ #243$    25,196.25 ➤ $    20,219.25 
#2322018-09-05:  1×MGM 17 Jan 2020 $28.00 P $       405.00 ( $          -0.64 )$    25,673.98 ➤ $    20,696.98 
#2312018-09-05:-1×GILD 16 Nov 2018 $85.00 C $         44.00 ( $        -12.14 )→ #251$    25,269.62 ➤ $    20,697.62 
#2302018-08-28:-4×TJX 18 Apr 2019 $50.00 P $       499.00 ( $   -1,829.58 )→ #278$    25,237.76 ➤ $    20,665.76 
#2292018-08-28:-2×TJX 18 Apr 2019 $55.00 C $       572.00 ( $        -40.29 )$    26,568.34 ➤ $    21,996.34 
#2282018-08-28:-2×TGT 19 Oct 2018 $80.00 P $       123.00 ( $          -0.82 )$    26,036.63 ➤ $    21,464.63 
#2272018-08-28:-3×NKE 19 Oct 2018 $75.00 P $       183.00 ( $        -91.65 )→ #247$    25,914.45 ➤ $    21,342.45 
#2262018-08-28:-10×F 18 Jan 2019 $11.00 C $       216.00 ( $        -81.06 )→ #250$    25,823.10 ➤ $    21,251.10 
#2252018-08-17:-2×CMCSA 16 Nov 2018 $37.50 C $       181.00 ( $      -264.09 )→ #253$    25,688.16 ➤ $    21,116.16 
#2242018-08-10:-10×F 18 Jan 2019 $11.00 C $       210.00 ( $        -65.61 )→ #246$    25,771.25 ➤ $    21,199.25 
#2232018-08-06:-1×UNP 19 Oct 2018 $140.00 P $       172.00 ( $          -1.59 )$    25,626.86 ➤ $    21,054.86 
#2222018-08-06:-1×HON 21 Sep 2018 $145.00 P $         75.00 ( $          -1.09 )$    25,456.45 ➤ $    20,884.45 
#2212018-08-06:-1×HD 21 Sep 2018 $185.00 P $       177.00 ( $          -0.79 )$    25,382.54 ➤ $    20,810.54 
#2202018-08-06:-1×CVS 21 Sep 2018 $65.00 P $       222.00 ( $          -0.84 )$    25,206.33 ➤ $    20,634.33 
#2192018-08-06:-2×CSCO 19 Oct 2018 $40.00 P $       124.00 ( $          -2.57 )$    24,985.17 ➤ $    20,413.17 
#2182018-08-06:-2×BBY 21 Sep 2018 $70.00 P $       324.00 ( $          -0.98 )$    24,863.74 ➤ $    20,291.74 
#2172018-08-06:-2×ADM 21 Dec 2018 $45.00 P $       124.00 ( $      -671.30 )→ #291$    24,540.72 ➤ $    19,968.72 
#2162018-07-30:-1×MGM 21 Sep 2018 $31.00 P $       144.00 ( $      -350.42 )→ #232$    25,088.02 ➤ $    20,516.02 
#2152018-07-26:-1×MKC 21 Dec 2018 $115.00 P $       353.00 ( $        -20.45 )$    25,294.44 ➤ $    20,722.44 
#2142018-07-20:-2×WSM 16 Nov 2018 $60.00 P $       717.00 ( $            0.00 )$    24,961.89 ➤ $    20,389.89 
#2132018-07-18:-1×HSY 24 Aug 2018 $91.00 P $       229.00 ( $          -0.62 )$    24,244.89 ➤ $    19,672.89 
#2122018-06-20:-2×SBUX 17 Jan 2020 $50.00 P $       915.00 ( $      -153.55 )$    24,016.51 ➤ $    19,444.51 
#2112018-06-20:-1×HSY 20 Jul 2018 $92.00 P $       194.00 ( $        -65.41 )→ #213$    23,255.06 ➤ $    18,683.06 
#2102018-06-20:-3×GIS 17 Jan 2020 $42.50 P $    1,224.00 ( $          -1.49 )$    23,126.47 ➤ $    18,554.47 
#2092018-06-20:  3×GIS 17 Jan 2020 $60.00 C $           0.00 ( $      -235.46 )$    21,903.96 ➤ $    18,555.96 
#2082018-06-14:-2×TGT 19 Oct 2018 $70.00 P $       355.00 ( $        -20.43 )→ #228$    22,139.42 ➤ $    18,791.42 
#2072018-06-14:-3×NKE 19 Oct 2018 $65.00 P $       264.00 ( $        -31.18 )→ #227$    21,804.85 ➤ $    18,456.85 
#2062018-06-14:-20×F 18 Jan 2019 $12.00 C $    1,383.00 ( $      -306.09 )$    21,572.03 ➤ $    18,224.03 
#2052018-06-14:-2×WBA 19 Oct 2018 $70.00 C $       288.00 ( $      -413.80 )→ #245$    20,495.12 ➤ $    17,147.12 
#2042018-06-14:-1×TSM 18 Jan 2019 $45.00 C $         55.00 ( $          -5.67 )$    20,620.92 ➤ $    17,272.92 
#2032018-06-14:-1×TRV 19 Oct 2018 $140.00 C $       124.00 ( $          -1.09 )$    20,571.59 ➤ $    17,223.59 
#2022018-06-14:-2×TJX 19 Oct 2018 $52.50 C $         90.00 ( $      -398.62 )→ #229$    20,448.68 ➤ $    17,100.68 
#2012018-06-14:-2×T 19 Oct 2018 $36.00 C $         94.00 ( $          -1.58 )$    20,757.30 ➤ $    17,409.30 
#2002018-06-14:-1×RDS.B 18 Jan 2019 $80.00 C $       115.00 ( $        -30.67 )$    20,664.88 ➤ $    17,316.88 
#1992018-06-14:-2×PG 19 Oct 2018 $85.00 C $         74.00 ( $      -233.80 )→ #248$    20,580.55 ➤ $    17,232.55 
#1982018-06-14:-1×LOW 18 Jan 2019 $120.00 C $       110.00 ( $        -10.57 )$    20,740.35 ➤ $    17,392.35 
#1972018-06-14:-1×JNJ 21 Dec 2018 $135.00 C $       150.00 ( $      -407.72 )→ #244$    20,640.92 ➤ $    17,292.92 
#1962018-06-14:-2×GILD 16 Nov 2018 $85.00 C $       166.00 ( $        -23.68 )→ #251$    20,898.64 ➤ $    17,550.64 
#1952018-06-14:-2×DIS 19 Oct 2018 $125.00 C $       116.00 ( $          -1.58 )$    20,756.32 ➤ $    17,408.32 
#1942018-06-14:-2×CMCSA 17 Aug 2018 $35.00 C $       164.00 ( $        -85.40 )→ #225$    20,641.90 ➤ $    17,293.90 
#1932018-06-14:-1×BUD 21 Dec 2018 $115.00 C $         85.00 ( $        -12.57 )$    20,563.30 ➤ $    17,215.30 
#1922018-06-14:-1×AAPL 20 Jul 2018 $200.00 C $       122.00 ( $          -1.09 )$    20,490.87 ➤ $    17,142.87 
#1912018-06-12:-2×TPR 20 Jul 2018 $45.00 P $       140.00 ( $          -8.76 )$    20,369.96 ➤ $    17,021.96 
#1902018-06-12:-1×MKC 21 Sep 2018 $100.00 P $       185.00 ( $        -18.36 )→ #215$    20,238.72 ➤ $    16,890.72 
#1892018-06-12:-2×AEO 17 Aug 2018 $24.00 P $       180.00 ( $          -9.17 )$    20,072.08 ➤ $    16,724.08 
#1882018-05-24:-2×WSM 17 Aug 2018 $47.50 P $       240.00 ( $        -12.08 )→ #214$    19,901.25 ➤ $    16,553.25 
#1872018-05-24:-4×TJX 19 Oct 2018 $41.25 P $       380.00 ( $        -17.28 )→ #230$    19,673.33 ➤ $    16,325.33 
#1862018-05-24:-2×TGT 20 Jul 2018 $67.50 P $       224.00 ( $        -32.79 )→ #208$    19,310.61 ➤ $    15,962.61 
#1852018-05-24:-2×HSY 15 Jun 2018 $91.00 P $       236.00 ( $          -0.74 )$    19,119.40 ➤ $    15,771.40 
#1842018-05-11:-1×WMT 21 Jun 2019 $82.50 P $       667.00 ( $        -93.42 )$    18,884.14 ➤ $    15,536.14 
#1832018-05-11:-1×VLO 17 Jan 2020 $90.00 C $    2,935.00 ( $      -701.77 )$    18,310.56 ➤ $    14,962.56 
#1822018-05-11:-1×PG 17 Jan 2020 $72.50 P $       633.00 ( $      -179.71 )$    16,077.33 ➤ $    12,729.33 
#1812018-05-11:-1×MO 21 Jun 2019 $55.00 P $       579.00 ( $      -562.72 )→ #315$    15,624.04 ➤ $    12,276.04 
#1802018-05-11:-3×GPS 21 Dec 2018 $29.00 P $       912.00 ( $      -886.90 )→ #255$    15,607.76 ➤ $    12,259.76 
#1792018-05-11:-2×DIS 17 Jan 2020 $100.00 P $    1,845.00 ( $          -1.15 )$    15,582.66 ➤ $    12,234.66 
#1782018-05-11:  2×DIS 17 Jan 2020 $130.00 C $           0.00 ( $      -712.11 )$    13,738.81 ➤ $    12,235.81 
#1772018-04-20:-3×GLW 18 Jan 2019 $27.00 P $       618.00 ( $      -102.32 )$    14,450.92 ➤ $    12,947.92 
#1762018-04-20:-1×PG 18 Jan 2019 $77.50 P $       627.00 ( $      -672.25 )→ #182$    13,935.24 ➤ $    12,432.24 
#1752018-04-20:-1×MO 20 Jul 2018 $60.00 P $       438.00 ( $      -505.25 )→ #181$    13,980.49 ➤ $    12,477.49 
#1742018-04-20:-3×KBH 18 Jan 2019 $30.00 P $    1,494.00 ( $          -1.46 )$    14,047.74 ➤ $    12,544.74 
#1732018-04-06:-1×WMT 18 May 2018 $87.50 P $       304.00 ( $      -508.25 )→ #184$    12,555.20 ➤ $    11,052.20 
#1722018-04-06:-2×DIS 18 May 2018 $110.00 C $       116.00 ( $          -1.38 )$    12,759.45 ➤ $    11,256.45 
#1712018-03-23:-3×XLRE 18 May 2018 $29.00 P $       120.00 ( $          -0.18 )$    12,644.83 ➤ $    11,141.83 
#1702018-03-23:-2×APC 18 May 2018 $57.50 P $       290.00 ( $          -0.99 )$    12,525.01 ➤ $    11,022.01 
#1692018-03-22:-3×PFE 18 May 2018 $34.00 P $       141.00 ( $          -1.47 )$    12,236.00 ➤ $    10,733.00 
#1682018-03-22:-3×GPS 18 May 2018 $31.00 P $       447.00 ( $      -551.90 )→ #180$    12,096.47 ➤ $    10,593.47 
#1672018-03-14:-6×WEN 18 May 2018 $16.00 P $       270.00 ( $          -0.25 )$    12,201.37 ➤ $    10,698.37 
#1662018-03-14:-2×STLD 18 May 2018 $46.00 P $       410.00 ( $          -0.69 )$    11,931.62 ➤ $    10,428.62 
#1652018-03-14:-1×RS 20 Apr 2018 $87.50 P $       170.00 ( $          -0.34 )$    11,522.31 ➤ $    10,019.31 
#1642018-03-14:-3×PFE 15 Jun 2018 $34.00 P $       150.00 ( $          -1.47 )$    11,352.65 ➤ $      9,849.65 
#1632018-03-14:10×NEE 20 Apr 2018 $150.00 P $           0.00 ( $   -1,055.63 )$    11,204.12 ➤ $      9,701.12 
#1622018-03-14:-10×NEE 20 Apr 2018 $155.00 P $    2,153.00 ( $          -5.70 )$    12,259.75 ➤ $    10,756.75 
#1612018-03-14:-2×KMB 17 Jan 2020 $100.00 P $    1,503.00 ( $          -0.11 )$    10,112.45 ➤ $      8,609.45 
#1602018-03-14:  2×KMB 17 Jan 2020 $135.00 C $           0.00 ( $      -783.14 )$      8,609.56 ➤ $      8,609.56 

key:  expired  •  closed  •  rolled  •  assigned  •  open 

Options Expiring Soon


Below I'm listing options expiring in the next two months. On expiration day, in the money options will result in options assignment, which I'd like to avoid in some cases, if possible.

April 2019:
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $ 250.00 ( $ -0.79 )→ Out of the money with a  4% safety margin 
#2802018-12-06:-1×TRV 18 Apr 2019 $140.00 C $ 100.00 ( $ -0.34 )→ Out of the money with a  2% safety margin 

May 2019:

#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $ 224.00 ( $ -0.79 )  → Out of the money with a  5% safety margin 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $ 220.00 ( $ -0.84 )   → Out of the money with a  7% safety margin 

#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $ 105.00 ( $ -1.52 )  → Out of the money with a  20% safety margin 
#2752018-12-06:-1×ROST 17 May 2019 $100.00 C $   85.00 ( $ -1.94 )  → Out of the money with a  5% safety margin 

A few options are out of the money with small margins of safety, so I'll have to monitor these carefully as the options expiration dates approach.

Concluding Remarks


My options goal in 2019 is to collect a total of $21,000 or an average of $1,750 per month.


Total
Options Income
Secured
Options Income
This Month:
$  48,847
$  23,741
Last Month:
$  46,403
$  21,899
Difference:
 $    2,444 
$    1,842

I collected options income of $2,444 in March, for a year to date total of $6,055. This averages over $2,000 per month, so I'm now ahead of pace for 2019! 

While my options income does not yet match DivGro's dividend income, I'm hoping that will happen in the future.

After 75 months of dividend growth investment, DivGro's all-time total dividend income stands at $72,170, whereas my all-time total options income is $48,847 after less than three years of options trading.

My income goals for 2019 are to collect $25,200 in dividend income and $21,000 in options income.

Quarter-ending months (like March) are huge dividend income months, so my year to date dividend income got a nice boost this month.






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8 comments :

  1. Gosh, this is all Greek to me

    ReplyDelete
    Replies
    1. I'm sorry. Just skip this one and wait for the next article :-)

      Delete
    2. Thanks FerdiS for the update. Hope I am not getting too personal but, what type of account do you trade options in? Tax deferred vs. Non deferred? I have an unorganized mixture of both and was thinking that I would be better off trading options in my tax deferred account while keeping qualified dividends in taxable account in order to capture the favored tax treatment. Would that be logical?

      Delete
    3. But do you actually make money with it? Where can I find Options trading for income for dummies?

      Delete
    4. Anonymous -- I like this book on options trading, I focuses on selling options, not buying options, which I don't do:

      https://books.google.com/books/about/Get_Rich_with_Options.html?id=6pEjeGjokocC&printsec=frontcover

      Cheers!

      Delete
    5. Hi, MikeS -- thanks for your comment.

      My options trading is done in a taxable, margin account at Interactive Brokers. My IRA's are at Folio Investing, which does not offer options trading.

      I have not really considered the pros and cons of trading options in tax deferred accounts. I sell covered calls on dividend paying stocks I own, so I need to do both in the same account. Some people don't like selling covered calls because they see the potential assignment of calls as a negative event. I don't. The premiums more than compensates for the one dividend you may be missing out on. And usually, I can replace the (overvalued) dividend stock with one that is undervalued and with more upside potential.

      Delete
  2. It looks like you've been busy. Congrats on the profits from the AAPL puts. I was a little over-extended in December and came close to a margin call. I'm trying to deleverage mine a little in case we see another correction. So far it's been fun and has generated a lot of income though. Thanks for posting the update.

    ReplyDelete
    Replies
    1. You're welcome, AAI -- thanks for visiting and commenting.

      AAPL is a great stock for put option selling, provided you can take on the risk of paying close to $20,000 if the put is assigned.

      A margin call is scary, so I'm glad that didn't happen. You're probably fine now since the market has recovered nicely.

      I'm slowly improving my portfolio's risk profile, and I have many covered calls at levels that I'd be happy to sell at. I'm hoping some of these assignments happen, as I want to go to a larger cash position by the end of this year.

      Delete

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