Thursday, May 2, 2019

Options Update: April 2019

Welcome to my monthly options update article!

The stock market has recovered most (if not all) of last year's end-of-year losses, and I've been getting a little more cautious with my options trades. So this month has been quieter than usual.

I decided to buy back one of the PG covered call options I sold, which got away from me as the stock burst higher. The transaction cost me some of my accumulated 2019 options income, so I lost some ground on my 2019 options income goal, unfortunately. (Recall that my options goal in 2019 is to collect a total of $21,000 in options income).

Recap


Through March 2019, I collected options income totaling $6,055 so far in 2019. 

Below is a snapshot of April's trades, which included one assignment, two expirations, four transactions in which I closed options before expiration, and a few in which I rolled forward some options. I also sold two covered calls in April. 


Assigned Options


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

#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $ 145.00 ( $ 3.16 )

I wanted to expand my position in Walgreens Boots Alliance (WBA) and $55.00 seemed like a good entry point. So on 4 April, I sold the 18 April $55 put for $145 with WBA trading near $55 per share. Then on 18 April, WBA closed at $54.63 and the put got assigned.

Effectively, I bought 100 shares of WBA for $55 – $1.45 = $53.55 per share (excluding the commission of $3.16).

Expired Options


In April, the following options expired:

#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $ 250.00 ( $ -0.79 )
#2802018-12-06:-1×TRV 18 Apr 2019 $140.00 C $ 100.00 ( $ -0.34 )

On 18 April, Hershey (HSY) closed at $116.96 per share, well above the $110 strike price of the April put I'd sold. So the put expired and I no longer have the obligation to buy 100 HSY shares.

Also on 18 April, Travelers (TRV) closed at $138.93, below the $140 strike price of the covered call I'd sold. So the covered call expired and I no longer have the obligation to sell my TRV shares.

I secured options income totaling $349 with these trades.

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:

#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $ 295.00 ( $      -10.46 )
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $ 105.00 ( $        -9.31 )
#273a2018-12-06:-1×PG 15 Jan 2021 $95.00 C $ 780.00 ( $ -1,641.68 )
#2902018-12-14:-2×MO 21 Jun 2019 $60.00 C $ 230.00 ( $      -21.77 )
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $ 294.00 ( $      -21.78 )

On 22 April, Walt Disney (DIS) traded near $132 per share. The $105 put I'd sold was deep out of the money and I decided to buy back the put. Closing the option early secured most of the available options income and I netted about $285.

Also on 22 April, Microsoft (MSFT) traded around $123 per share, well above the $100 strike price of the put I'd sold. Buying back the put netted about $95 (or more than 91% of the available options income).

Procter & Gamble (PG) traded above $106 per share on 22 April, so the $95 covered calls I'd sold were deep in the money. I decided to buy back one of these covered calls and to sell the underlying shares (half of my shares) at the same time. The options trade resulted in a net loss of about $862. However, selling 100 shares of PG at $106.15 allowed me to grab gains of more than $3,500, for an annualized total profit (including dividends) of 54%. Not bad!

On 29 April, Altria (MO) traded for about $53 per share, so the $60 covered calls I'd sold were deep out of the money. I decided to buy back the covered calls to secure most of the available options income. The trade netted about $208.

Finally, JPMorgan Chase (JPM) traded above $115 a share, so the $95 puts I'd sold were deep out of the money. I decided to buy back the puts and so secured most of the available options income. The trade netted about $272.

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:

#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $       328.00 ( $     -0.85 )
#2852018-12-06:-2×WBA 15 Jan 2021 $85.00 C $    2,074.00 ( $ -259.04 )→ #336
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $       121.00 ( $     -0.30 )
#2622018-12-06:-1×HRL 21 Jun 2019 $50.00 C $       110.00 ( $     -6.63 )→ #334

With Walgreens Boots Alliance 
(WBA) trading around $54 on 22 April, the January 2021, $85 covered calls I'd sold on WBA were deep out of the money. I decided to roll back the options to January 2020 and simultaneously to lower the strike price to $65. Doing so secured about $1,815 in options income and I collected another $328 for selling the January 2020, $65 call.

On 4 April, Hormel Foods (HRL) traded just below $42 per share, well below the $50 strike price of the June 2019 covered call I'd sold. I decided to roll forward the covered call to September and simultaneously to lower the strike price to $45. This secured about $103 in options income and I collected another $121 for selling the September calls. 

Covered Calls


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

I sold the following covered call in April:

#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $ 163.00 ( $ -0.80 )

#337 : 2019-04-22: Sold to Open 1 Contract of Option WBA Jan 17 2020 65.00 C

I own 100 shares of Walgreens Boots Alliance (WBA) at a cost basis of $61.79 per share. I'm willing to sell these shares for $65.00 on or before 17 January:

Open Date :  2019-04-22
Expiration Date :  2020-01-17    Number of Days in Trade : 270
Cost Basis :  $61.79 per shareGain at Strike Price : 5.20%
Strike Price :  $65.00 per share
Number of Contracts : 1Number of Shares :100
Call Premium :  $1.63 per shareOptions Income : $163.00
Commission : -$0.80
Net Premium :  $1.622 per shareNet Options Income : $162.20
Options Yield :  2.63%Annualized Options Yield : 3.55%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $60.15Gain if Exercised : 8.06%

This covered call yields 2.63%, or 3.55% on an annualized basis. The yield on cost of my WBA position is 2.85%, so I'm boosting dividend income by a factor of 1.25. If the option is exercised, I'll sell 100 shares of WBA at a reduced cost basis of $60.15 per share, for capital gains of 8.06%.


For covered calls, I think an achievable goal is to earn double the dividend yield. Unfortunately, this covered call trade fails to achieve my goal of doubling the 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!

I sold the following put contracts in April:


#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $ 145.00 ( $ -3.16 )

#335 : 2019-04-04: Sold to Open 1 Contract of Option WBA Apr 18 2019 55.00 P

I'm willing to buy 100 shares of Walgreens Boots Alliance (WBA) for $55.00 per share on or before 18 April. WBA closed at $54.15 per share on the date of my trade:

Open Date :  2019-04-04
Expiration Date :  2019-04-18    Number of Days in Trade : 14
Price at Close :  $54.15 per shareDiscount at Strike Price : -1.57%
Strike Price :  $55.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.45 per shareOptions Income : $145.00
Commission : -$3.16
Net Premium :  $1.418 per shareNet Options Income : $141.84
Options Yield :  2.62%Annualized Options Yield : 68.34%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $53.52Discount if Exercised : 1.17%

This put option trade yields 2.62%, or 68.34% on an annualized basis. At $54.15 per share, WBA yields 3.25%, so I'm boosting dividend income by a factor of 21.03. If the option is exercised, I'll buy 100 shares at a cost basis of $53.52 per share, a discount of 1.17%.


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 above put options trade easily achieves my boost factor goal.

Options Income Tally


key:  expired  •  closed  •  rolled  •  assigned  •  open 

IDDATE:NO×TICKER OPTIONINCOME( EXPENSES )ROLLEDTOTAL➤ SECURED
#3382019-04-23:-1×PG 15 Jan 2021 $105.00 C $       896.00 ( $          -0.81 )$    47,035.22 ➤ $    25,574.22 
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $       163.00 ( $          -0.80 )$    46,140.03 ➤ $    25,575.03 
#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $       328.00 ( $          -0.85 )$    45,977.83 ➤ $    25,575.83 
#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $       145.00 ( $          -3.16 )$    45,650.68 ➤ $    25,576.68 
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $       121.00 ( $          -0.30 )$    45,508.84 ➤ $    25,434.84 
#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $       151.00 ( $          -0.64 )$    45,388.14 ➤ $    25,435.14 
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $       173.00 ( $          -0.83 )$    45,237.78 ➤ $    25,435.78 
#3312019-03-27:-2×DGX 16 Aug 2019 $95.00 C $       341.00 ( $          -1.67 )$    45,065.61 ➤ $    25,436.61 
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $       264.00 ( $          -0.84 )$    44,726.28 ➤ $    25,438.28 
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $       492.00 ( $          -0.55 )$    44,463.12 ➤ $    25,439.12 
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $       114.00 ( $          -0.79 )$    43,971.67 ➤ $    25,439.67 
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $       224.00 ( $          -0.79 )$    43,858.46 ➤ $    25,440.46 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $       220.00 ( $          -0.84 )$    43,635.25 ➤ $    25,441.25 
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $       314.00 ( $          -0.99 )$    43,416.09 ➤ $    25,442.09 
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $       295.00 ( $        -10.46 )$    43,103.08 ➤ $    25,443.08 
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $       105.00 ( $          -9.31 )$    42,818.54 ➤ $    25,158.54 
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $       294.00 ( $        -21.78 )$    42,722.85 ➤ $    25,062.85 
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $       170.00 ( $        -68.73 )→ #329$    42,450.63 ➤ $    24,790.63 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $       220.00 ( $          -1.09 )$    42,349.36 ➤ $    24,689.36 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $       130.00 ( $          -0.08 )$    42,130.45 ➤ $    24,690.45 
#3182019-02-22:-3×SKT 17 Jan 2020 $25.00 C $       195.00 ( $          -0.12 )$    42,000.53 ➤ $    24,690.53 
#3172019-02-22:-1×PM 17 Jan 2020 $105.00 C $         95.00 ( $          -0.79 )$    41,805.65 ➤ $    24,690.65 
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $       287.00 ( $          -1.09 )$    41,711.44 ➤ $    24,691.44 
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $          -1.10 )$    41,425.53 ➤ $    24,692.53 
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $          -1.10 )$    40,978.63 ➤ $    24,693.63 
#3132019-02-22:  2×KO 17 Jan 2020 $52.50 C $         67.00 ( $          -1.58 )$    40,531.73 ➤ $    24,694.73 
#3122019-02-22:-2×INTC 18 Oct 2019 $55.00 C $       670.00 ( $          -1.59 )$    40,466.31 ➤ $    24,696.31 
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $       250.00 ( $          -0.79 )$    39,797.90 ➤ $    24,697.90 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $       209.00 ( $          -1.09 )$    39,548.69 ➤ $    24,448.69 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $          -0.79 )$    39,340.78 ➤ $    24,449.78 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $          -3.16 )$    39,289.57 ➤ $    24,450.57 
#3072019-02-20:-2×ADM 20 Sep 2019 $45.00 C $       234.00 ( $          -0.98 )$    39,079.73 ➤ $    24,453.73 
#3062019-02-07:-1×IP 17 Jan 2020 $47.50 C $       337.00 ( $          -1.09 )$    38,846.71 ➤ $    24,454.71 
#3052019-02-07:-1×INTC 14 Jan 2021 $50.00 C $       679.00 ( $          -1.10 )$    38,510.80 ➤ $    24,455.80 
#3042019-02-07:-1×AAPL 17 Jan 2020 $180.00 C $    1,380.00 ( $          -1.11 )$    37,832.90 ➤ $    24,456.90 
#3032019-01-24:-1×WSM 15 Feb 2019 $55.00 C $         42.00 ( $          -1.09 )$    36,454.01 ➤ $    24,458.01 
#3022019-01-24:-19×F 17 Jan 2020 $10.00 C $       722.00 ( $        -15.25 )$    36,413.10 ➤ $    24,417.10 
#3012019-01-24:-1×F 17 Jan 2020 $10.00 C $         36.00 ( $          -1.58 )$    35,706.35 ➤ $    24,432.35 
#3002019-01-24:-1×AFL 15 Jan 2021 $50.00 C $       420.00 ( $          -1.09 )$    35,671.93 ➤ $    24,433.93 
#2992019-01-24:-1×AAPL 18 Apr 2019 $170.00 C $       244.00 ( $      -812.18 )→ #304$    35,253.02 ➤ $    24,435.02 
#2982019-01-16:-1×MO 17 Jan 2020 $47.50 P $       515.00 ( $      -336.18 )→ #314$    35,821.20 ➤ $    25,003.20 
#2972019-01-16:-1×AAPL 18 Apr 2019 $155.00 P $       809.00 ( $        -12.18 )$    35,642.38 ➤ $    24,824.38 
#2962018-12-28:-1×JPM 15 Feb 2019 $105.00 C $       154.00 ( $          -1.09 )$    34,845.56 ➤ $    24,027.56 
#2952018-12-28:-1×DGX 17 May 2019 $100.00 C $         62.00 ( $        -16.09 )→ #331$    34,692.65 ➤ $    23,874.65 
#2942018-12-27:-1×WSM 15 Feb 2019 $55.00 C $         75.00 ( $          -0.34 )$    34,646.74 ➤ $    23,828.74 
#2932018-12-27:-1×JPM 15 Feb 2019 $105.00 C $         98.00 ( $          -1.09 )$    34,572.08 ➤ $    23,829.08 
#2922018-12-27:-1×IP 15 Feb 2019 $42.50 C $       105.00 ( $      -378.18 )→ #306$    34,475.17 ➤ $    23,830.17 
#2912018-12-21:-2×ADM 15 Mar 2019 $45.00 P $       851.00 ( $          -1.58 )$    34,748.35 ➤ $    24,103.35 
#2902018-12-14:-2×MO 21 Jun 2019 $60.00 C $       230.00 ( $        -21.77 )$    33,898.93 ➤ $    23,253.93 
#2892018-12-14:-1×MO 18 Jan 2019 $52.50 P $       181.00 ( $      -517.87 )→ #298$    33,690.70 ➤ $    23,045.70 
#2882018-12-14:-1×AAPL 18 Jan 2019 $160.00 P $       375.00 ( $      -507.87 )→ #297$    34,027.57 ➤ $    23,382.57 
#2872018-12-06:-1×XOM 18 Apr 2019 $85.00 C $       126.00 ( $          -7.73 )→ #333$    34,160.44 ➤ $    23,515.44 
#2862018-12-06:-2×WSM 15 Feb 2019 $60.00 C $       300.00 ( $        -71.57 )$    34,042.17 ➤ $    23,397.17 
#2852018-12-06:-2×WBA 15 Jan 2021 $85.00 C $    2,074.00 ( $      -259.04 )→ #336$    33,813.74 ➤ $    23,168.74 
#2842018-12-06:-1×VYM 18 Jan 2019 $85.00 C $         80.00 ( $          -0.34 )$    31,998.78 ➤ $    21,353.78 
#2832018-12-06:-1×VLO 15 Mar 2019 $90.00 C $       165.00 ( $          -0.79 )$    31,919.12 ➤ $    21,274.12 
#2822018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         60.00 ( $          -0.34 )$    31,754.91 ➤ $    21,109.91 
#2812018-12-06:-1×TSM 19 Jul 2019 $45.00 C $         64.00 ( $          -1.09 )$    31,695.25 ➤ $    21,110.25 
#2802018-12-06:-1×TRV 18 Apr 2019 $140.00 C $       100.00 ( $          -0.34 )$    31,632.34 ➤ $    21,111.34 
#2792018-12-06:-1×TROW 18 Apr 2019 $110.00 C $       115.00 ( $        -17.43 )→ #320$    31,532.68 ➤ $    21,011.68 
#2782018-12-06:-4×TJX 17 Jan 2020 $45.00 P $    1,746.00 ( $          -4.00 )$    31,435.11 ➤ $    20,914.11 
#2772018-12-06:-4×T 21 Jun 2019 $35.00 C $       128.00 ( $        -46.58 )→ #308$    29,693.11 ➤ $    20,918.11 
#2762018-12-06:-1×SBUX 15 Feb 2019 $70.00 C $       132.00 ( $          -0.79 )$    29,611.69 ➤ $    20,836.69 
#2752018-12-06:-1×ROST 17 May 2019 $100.00 C $         85.00 ( $          -1.94 )$    29,480.48 ➤ $    20,705.48 
#2742018-12-06:-1×PM 18 Jan 2019 $80.00 P $       160.00 ( $          -0.79 )$    29,397.42 ➤ $    20,707.42 
#273b2018-12-06:-1×PG 15 Jan 2021 $95.00 C $       780.00 ( $   -1,498.38 )→ #338$    29,238.21 ➤ $    20,548.21 
#273a2018-12-06:-1×PG 15 Jan 2021 $95.00 C $       780.00 ( $   -1,641.68 )$    29,956.59 ➤ $    21,266.59 
#2722018-12-06:-2×PFE 21 Jun 2019 $50.00 C $       154.00 ( $          -6.40 )→ #332$    30,818.27 ➤ $    22,128.27 
#2712018-12-06:-2×O 21 Jun 2019 $70.00 C $       188.00 ( $            0.00 )$    30,670.67 ➤ $    21,980.67 
#2702018-12-06:-1×MSFT 15 Mar 2019 $125.00 C $       115.00 ( $          -3.88 )→ #316$    30,482.67 ➤ $    21,980.67 
#2692018-12-06:-5×MAIN 21 Jun 2019 $40.00 C $       250.00 ( $          -0.18 )$    30,371.55 ➤ $    21,869.55 
#2682018-12-06:-1×LOW 21 Jun 2019 $120.00 C $         67.00 ( $          -0.79 )$    30,121.73 ➤ $    21,869.73 
#2672018-12-06:-4×KRG 17 May 2019 $20.00 C $         60.00 ( $        -36.00 )$    30,055.52 ➤ $    21,870.52 
#2662018-12-06:-2×KO 17 May 2019 $52.50 C $       154.00 ( $          -7.75 )→ #313$    30,031.52 ➤ $    21,846.52 
#2652018-12-06:-3×KBH 19 Jul 2019 $26.00 C $       309.00 ( $      -279.81 )$    29,885.27 ➤ $    21,700.27 
#2642018-12-06:-1×JPM 18 Jan 2019 $110.00 C $       146.00 ( $        -10.17 )→ #293$    29,856.08 ➤ $    21,671.08 
#2632018-12-06:-2×INTC 15 Feb 2019 $55.00 C $       106.00 ( $          -2.53 )$    29,720.25 ➤ $    21,535.25 
#2622018-12-06:-1×HRL 21 Jun 2019 $50.00 C $       110.00 ( $          -6.63 )→ #334$    29,616.78 ➤ $    21,431.78 
#2612018-12-06:-1×ES 19 Jul 2019 $70.00 C $       270.00 ( $          -0.34 )$    29,513.41 ➤ $    21,328.41 
#2602018-12-06:-1×DGX 17 May 2019 $100.00 C $       135.00 ( $        -16.17 )→ #331$    29,243.75 ➤ $    21,328.75 
#2592018-12-06:-1×D 19 Jul 2019 $80.00 C $       130.00 ( $          -0.34 )$    29,124.92 ➤ $    21,209.92 
#2582018-12-06:-1×AFL 17 May 2019 $45.00 C $       160.00 ( $      -371.87 )→ #300$    28,995.26 ➤ $    21,210.26 
#2572018-12-06:-2×ABBV 17 May 2019 $100.00 C $       500.00 ( $        -14.01 )→ #330$    29,207.13 ➤ $    21,422.13 
#2562018-12-06:-1×AAPL 15 Feb 2019 $200.00 C $       167.00 ( $          -4.87 )→ #299$    28,721.14 ➤ $    20,936.14 
#2552018-11-01:-3×GPS 21 Jun 2019 $27.00 P $    1,004.00 ( $          -1.47 )$    28,559.01 ➤ $    20,774.01 
#2542018-11-01:-2×FL 15 Feb 2019 $45.00 P $       660.00 ( $        -13.22 )$    27,556.48 ➤ $    20,775.48 
#2532018-11-01:-2×CMCSA 21 Jun 2019 $42.50 C $       320.00 ( $          -1.28 )$    26,909.70 ➤ $    20,128.70 
#2522018-10-29:-1×IP 21 Dec 2018 $42.50 P $       162.00 ( $          -0.79 )$    26,590.98 ➤ $    20,129.98 
#2512018-10-25:-3×GILD 18 Jan 2019 $80.00 C $       304.00 ( $        -63.51 )$    26,429.77 ➤ $    19,968.77 
#250b2018-10-24:-1×F 15 Mar 2019 $10.00 C $         19.00 ( $          -6.60 )→ #301$    26,189.28 ➤ $    19,728.28 
#250a2018-10-24:-9×F 15 Mar 2019 $10.00 C $       171.00 ( $      -142.35 )$    26,176.88 ➤ $    19,715.88 
#2492018-10-23:-1×TSM 18 Jan 2019 $40.00 C $       114.00 ( $        -37.17 )→ #282$    26,148.23 ➤ $    19,687.23 
#2482018-10-19:-2×PG 18 Jan 2019 $85.00 C $       695.00 ( $   -1,623.97 )→ #273a$    26,071.40 ➤ $    19,610.40 
#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.

May 2019:
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $ 224.00 
( $ -0.79 )     → Out of the money with a  12% safety margin 
#2752018-12-06:-1×ROST 17 May 2019 $100.00 C $   85.00 
( $ -1.94 )     → Out of the money with a  4% safety margin 

June 2019
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $    114.00 ( $ -0.79 )   → Out of the money with a  6% safety margin 
#2712018-12-06:-2×O 21 Jun 2019 $70.00 C $    188.00 ( $  0.00 )   → At the money  — caution! 
#2692018-12-06:-5×MAIN 21 Jun 2019 $40.00 C $    250.00 ( $ -0.18 )   → Out of the money with a  2% safety margin 
#2682018-12-06:-1×LOW 21 Jun 2019 $120.00 C $      67.00 ( $ -0.79 )   → Out of the money with a  8% safety margin 
#2552018-11-01:-3×GPS 21 Jun 2019 $27.00 P $ 1,004.00 ( $ -1.47 )
   → In the money by  5% — caution! 
#2532018-11-01:-2×CMCSA 21 Jun 2019 $42.50 P $ 320.00 ( $ -1.28 )
   → In the money by  2% — caution! 

Two options are in the money, one is at the money, and several 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 at an average of $1,750 per month.


Total
Options Income
Secured
Options Income
This Month:
$  47,035
$  25,574
Last Month:
$  48,847
$  23,741
Difference:
 $  –1,812 
$    1,833


I gave back options income of $1,812 in March, for a year to date total of $4,243. This averages just more than $1,060 per month, far short of the desired monthly average of $1,750.

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

After 76 months of dividend growth investing, DivGro's all-time total dividend income stands at $73,330, whereas my all-time total options income is $47,035 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.



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2 comments :

  1. Hi Ferdi,

    really nice posting about your option income. I also closed covered call (MSFT) with losses - but without selling the stocks.

    Wish you further good investments. You'll be the first to reach 1 milion USD market value of all bloggers I trace.

    CU latest next month! :)

    ReplyDelete
    Replies
    1. Hi Torsten -- thanks for your note. Sometimes the underlying in a covered call just moves much faster than expected... and that's happened with a few of my stocks! It looks like the trade war with China will cause some pullback, though...

      We'll see how it goes in May... volatility is up big-time!

      Delete

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