Wednesday, October 9, 2019

Options Update: September 2019

Welcome to another options update article!

I write monthly update articles to summarize options trades and to keep track of options income. Each update also serves as a status report on open options and the obligations I potentially have.

My monthly target for options income in 2019 is $1,750. September's options income was below average at $1,382. After I made some fantastic progress in August, I'm still on pace to collect $21,000 in options income this year!

This month I'm reporting on one assignment and a multitude of income-generating trades.

Recap


Through the end of August 2019, I collected options income totaling $18,567 in 2019 at an average of about $2,321 per month. This was well ahead of my monthly target average of $1,750. 

Below is a snapshot of September's trades, which included nine expirations, four trades in which I rolled forward options, six trades in which I sold new options for income, and one assignment. 


Assigned Options


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

#368a2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $ 76.00 ( $ -0.50 )

On 20 September, I noticed that ORCL was trading below $54 per share. Since ORCL was trading just a little below the $55 strike price of the puts I'd sold, I decided to roll forward one of the puts and wait for the other one to be assigned.

As a consequence of the assignment, I bought 100 shares of ORCL for $55 per share. Since I collected $75 for selling the option, my effective cost basis is $54.25. The buy adds $96 to DivGro's projected annual dividend income (PADI).

Expired Options


In September, the following option expired:

#3812019-08-02:-3×PFE 20 Sep 2019 $40.00 C $ 138.00 ( $ -2.39 )
#3802019-08-02:-1×MRK 20 Sep 2019 $80.00 P $ 110.00 ( $ -1.09 )
#3792019-08-02:-1×MDT 20 Sep 2019 $97.50 P $ 158.00 ( $ -0.80 )
#3542019-05-28:-2×DAL 20 Sep 2019 $50.00 P $ 310.00 ( $ -1.00 )
#3492019-05-22:-2×ADM 20 Sep 2019 $35.00 P $ 110.00 ( $ -0.75 )
#3482019-05-20:-1×SNA 20 Sep 2019 $140.00 P $ 260.00 ( $ -1.10 )
#3412019-05-15:-1×INTC 20 Sep 2019 $40.00 P $ 105.00 ( $ -0.80 )
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $ 121.00 ( $ -0.30 )
#3072019-02-20:-2×ADM 20 Sep 2019 $45.00 C $ 234.00 ( $ -0.98 )

For details on these expirations, please read this article.

I secured options income totaling $1,546 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 didn't close any options early this month.

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:

#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $    213.00 ( $        -1.59 )
#368b2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $      76.00 ( $    -109.07 )→ #396
#3952019-09-20:-1×MSFT 21 Jan 2022 $155.00 C $ 1,490.00 ( $        -0.68 )
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $    287.00 ( $ -1,486.73 )→ #395
#3932019-09-20:-2×MO 15 Jan 2021 $45.00 P $ 2,029.00 ( $        -0.88 )
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $    448.00 ( $ -1,065.52 )→ #393
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $    448.00 ( $ -1,065.52 )→ #393
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $    820.00 ( $        -1.80 )
#3672019-07-16:2×CSX 20 Sep 2019 $72.50 P $    150.00 ( $    -548.77 )→ #387

On 20 September, Oracle (ORCL) traded below the September $55 put I'd sold. I decided to roll forward the option to January 2020 and to lower the strike price to $52.50. The trade cost me about $33 in secured options income, but I collected enough options income to remain net positive.

Microsoft (MSFT) continues to trend higher and the October $125 covered call I'd sold was deep in the money. I decided to roll forward the covered call to January 2022 and to increase the strike price to $155. Doing so cost me about $1,200 in secured options income, but selling the LEAP keeps the trade net positive. 

Altria (MO) traded below $41 on 20 September, so the $50 January 2020 puts I'd sold were deep in the money. I decided to roll forward the options to January 2021 and simultaneously to lower the strike price to $45. Doing so cost me about $1,235 in secured options income, but I collected enough options income by selling the LEAPs that the trade remains net positive. 

Finally, CSX (CSX) traded below $69 on 20 September, so the September $72.50 puts I'd sold were deep in the money. I decided to roll forward the put options to January 2020 and simultaneously to lower the strike price to $70. Doing so cost me about $399 in secured options income, but I collected enough options income from selling the January 2020 puts to remain net positive.


Covered Calls


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

I sold the following covered calls in September:

#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $ 266.00 ( $ -0.64 )
#3902019-09-20:-2×INTC 15 Nov 2019 $55.00 C $ 168.00 
( $ -1.59 )
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $ 182.00 ( $ -0.80 )
#3942019-09-20:-2×MO 20 Mar 2020 $50.00 C $ 120.00 ( $  -0.99 )

#389 : 2019-09-20: Sold to Open 2 Contracts of Option GILD Feb 21 2020 75.00 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 $75.00 on or before 21 February:

Open Date :  2019-09-20
Expiration Date :  2020-02-21    Number of Days in Trade : 154
Cost Basis :  $70.64 per shareGain at Strike Price : 6.17%
Strike Price :  $75.00 per share
Number of Contracts : 2Number of Shares :200
Call Premium :  $1.33 per shareOptions Income : $266.00
Commission : -$0.64
Net Premium :  $1.327 per shareNet Options Income : $265.36
Options Yield :  1.88%Annualized Options Yield : 4.45%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $69.31Gain if Exercised : 8.21%

This covered call yields 1.88%, or 4.45% 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 1.25. If the options are exercised, I'll sell 200 shares of GILD at a reduced cost basis of $69.31 per share, for capital gains of 8.21%.


#390 : 2019-09-20: Sold to Open 2 Contracts of Option INTC Nov 15 2019 55.00 C

I own 200 shares of Intel (INTC) at a cost basis of $27.42 per share. I'm willing to sell these shares for $55.00 on or before 15 November:

Open Date :  2019-09-20
Expiration Date :  2019-11-15    Number of Days in Trade : 56
Cost Basis :  $27.42 per shareGain at Strike Price : 100.58%
Strike Price :  $55.00 per share
Number of Contracts : 2Number of Shares :200
Call Premium :  $0.84 per shareOptions Income : $168.00
Commission : -$1.59
Net Premium :  $0.832 per shareNet Options Income : $166.41
Options Yield :  3.03%Annualized Options Yield : 19.79%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $26.57Gain if Exercised : 106.98%

This covered call yields 3.03%, or 19.79% on an annualized basis. The yield on cost of my INTC position is 4.60%, so I'm boosting dividend income by a factor of 4.31. If the options are exercised, I'll sell 200 shares of INTC at a reduced cost basis of $26.57 per share, for capital gains of 106.98%.


#392 : 2019-09-20: Sold to Open 1 Contract of Option LOW Jan 17 2020 125.00 C

I own 100 shares of Lowe's (LOW) at a cost basis of $92.50 per share. I'm willing to sell these shares for $125.00 on or before 17 January:

Open Date :  2019-09-20
Expiration Date :  2020-01-17    Number of Days in Trade : 119
Cost Basis :  $92.50 per shareGain at Strike Price : 35.14%
Strike Price :  $125.00 per share
Number of Contracts : 1Number of Shares :100
Call Premium :  $1.82 per shareOptions Income : $182.00
Commission : -$0.80
Net Premium :  $1.812 per shareNet Options Income : $181.20
Options Yield :  1.96%Annualized Options Yield : 6.01%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $90.67Gain if Exercised : 37.86%

This covered call yields 1.96%, or 6.01% on an annualized basis. The yield on cost of my LOW position is 2.38%, so I'm boosting dividend income by a factor of 2.53. If the option is exercised, I'll sell 100 shares of LOW at a reduced cost basis of $90.67 per share, for capital gains of 37.86%.


#394 : 2019-09-20: Sold to Open 2 Contracts of Option MO Mar 20 2020 50.00 C

I own 200 shares of Altria (MO) at a cost basis of $49.82 per share. I'm willing to sell these shares for $50.00 on or before 20 March:

Open Date :  2019-09-20
Expiration Date :  2020-03-20    Number of Days in Trade : 182
Cost Basis :  $49.82 per shareGain at Strike Price : 0.36%
Strike Price :  $50.00 per share
Number of Contracts : 2Number of Shares :200
Call Premium :  $0.60 per shareOptions Income : $120.00
Commission : -$0.99
Net Premium :  $0.595 per shareNet Options Income : $119.01
Options Yield :  1.19%Annualized Options Yield : 2.40%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $49.22Gain if Exercised : 1.59%

This covered call yields 1.19%, or 2.40% on an annualized basis. The yield on cost of my MO position is 6.74%, so I'm boosting dividend income by a factor of 0.36. If the options are exercised, I'll sell 200 shares of MO at a reduced cost basis of $49.22 per share, for capital gains of 1.59%.


For covered calls, I think an achievable goal is to earn double the dividend yield. Only the INTC and LOW covered calls succeed to meet this goal.

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 September:

#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $  270.00 ( $ -2.56 )
#3912019-09-20:-3×INTC 15 Nov 2019 $45.00 P $  129.00 ( $ -3.83 )


#388 : 2019-09-20: Sold to Open 2 Contracts of Option GILD Jan 17 2020 60.00 P

I'm willing to buy 200 shares of Gilead Sciences (GILD) for $60.00 per share on or before 17 January 2020. GILD closed at $66.42 per share on the date of my trade:

Open Date :  2019-09-20
Expiration Date :  2020-01-17    Number of Days in Trade : 119
Price at Close :  $66.42 per shareDiscount at Strike Price : 9.67%
Strike Price :  $60.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.35 per shareOptions Income : $270.00
Commission : -$2.56
Net Premium :  $1.337 per shareNet Options Income : $267.44
Options Yield :  2.01%Annualized Options Yield : 6.18%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $58.64Discount if Exercised : 11.72%

This put option trade yields 2.01%, or 6.18% on an annualized basis. At $66.42 per share, GILD yields 3.79%, so I'm boosting dividend income by a factor of 1.63. If the options are exercised, I'll buy 200 shares at a cost basis of $58.64 per share, a discount of 11.72%.


#391 : 2019-09-20: Sold to Open 3 Contracts of Option INTC Nov 15 2019 45.00 P

I'm willing to buy 300 shares of Intel (INTC) for $45.00 per share on or before 15 November. INTC closed at $50.72 per share on the date of my trade:

Open Date :  2019-09-20
Expiration Date :  2019-11-15    Number of Days in Trade : 56
Price at Close :  $50.72 per shareDiscount at Strike Price : 11.28%
Strike Price :  $45.00 per share
Number of Contracts : 3Number of Shares :300
Put Premium :  $0.43 per shareOptions Income : $129.00
Commission : -$3.83
Net Premium :  $0.417 per shareNet Options Income : $125.17
Options Yield :  0.82%Annualized Options Yield : 5.37%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $44.56Discount if Exercised : 12.15%

This put option trade yields 0.82%, or 5.37% on an annualized basis. At $50.72 per share, INTC yields 2.48%, so I'm boosting dividend income by a factor of 2.16. If the options are exercised, I'll buy 300 shares at a cost basis of $44.56 per share, a discount of 12.15%.


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%. Both put options trade achieve this goal.

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 or are closed. Secured means I no longer have related obligations and "own" the corresponding options income free and clear. 

key:  expired  •  closed  •  rolled  •  assigned  •  open 

IDDATE:NO×TICKER OPTIONINCOME( EXPENSES )ROLLEDTOTAL➤ SECURED
#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $       213.00 ( $          -1.59 )$    62,740.68 ➤ $    37,818.68 
#3952019-09-20:-1×MSFT 21 Jan 2022 $155.00 C $    1,490.00 ( $          -0.68 )$    62,529.27 ➤ $    37,820.27 
#3942019-09-20:-2×MO 20 Mar 2020 $50.00 C $       120.00 ( $          -0.99 )$    61,039.95 ➤ $    37,820.95 
#3932019-09-20:-2×MO 15 Jan 2021 $45.00 P $    2,029.00 ( $          -0.88 )$    60,920.94 ➤ $    37,821.94 
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $       182.00 ( $          -0.80 )$    58,892.82 ➤ $    37,822.82 
#3912019-09-20:-3×INTC 15 Nov 2019 $45.00 P $       129.00 ( $          -3.83 )$    58,711.62 ➤ $    37,823.62 
#3902019-09-20:-2×INTC 15 Nov 2019 $55.00 C $       168.00 ( $          -1.59 )$    58,586.45 ➤ $    37,827.45 
#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $       266.00 ( $          -0.64 )$    58,420.04 ➤ $    37,829.04 
#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $       270.00 ( $          -2.56 )$    58,154.68 ➤ $    37,829.68 
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $       820.00 ( $          -1.80 )$    57,887.24 ➤ $    37,832.24 
#3862019-08-16:-1×XOM 17 Jan 2020 $80.00 C $         33.00 ( $          -1.10 )$    57,069.04 ➤ $    37,834.04 
#3852019-08-16:-1×DGX 21 Feb 2020 $100.00 C $       675.00 ( $          -0.31 )$    57,037.14 ➤ $    37,835.14 
#3842019-08-14:-1×TIF 17 Jan 2020 $85.00 P $       769.00 ( $          -0.66 )$    56,362.45 ➤ $    37,835.45 
#3832019-08-02:-1×XOM 18 Oct 2019 $67.50 P $       135.00 ( $          -0.80 )$    55,594.11 ➤ $    37,836.11 
#3822019-08-02:-1×VZ 18 Oct 2019 $52.50 P $       108.00 ( $          -0.96 )$    55,459.91 ➤ $    37,836.91 
#3812019-08-02:-3×PFE 20 Sep 2019 $40.00 C $       138.00 ( $          -2.39 )$    55,352.87 ➤ $    37,837.87 
#3802019-08-02:-1×MRK 20 Sep 2019 $80.00 P $       110.00 ( $          -1.09 )$    55,217.26 ➤ $    37,702.26 
#3792019-08-02:-1×MDT 20 Sep 2019 $97.50 P $       158.00 ( $          -0.80 )$    55,108.35 ➤ $    37,593.35 
#3782019-07-25:-2×NKE 18 Oct 2019 $75.00 P $       124.00 ( $          -0.99 )$    54,951.15 ➤ $    37,436.15 
#3772019-07-25:-2×MS 15 Nov 2019 $42.00 P $       263.00 ( $          -0.85 )$    54,828.14 ➤ $    37,437.14 
#3762019-07-25:-1×LLY 17 Jan 2020 $85.00 P $       106.00 ( $          -1.10 )$    54,565.99 ➤ $    37,437.99 
#3752019-07-25:-1×AAPL 18 Oct 2019 $180.00 P $       180.00 ( $          -0.65 )$    54,461.09 ➤ $    37,439.09 
#3742019-07-22:-1×XOM 17 Jan 2020 $80.00 C $       127.00 ( $          -1.53 )$    54,281.74 ➤ $    37,439.74 
#3732019-07-22:-1×VLO 20 Dec 2019 $100.00 C $       105.00 ( $          -0.68 )$    54,156.27 ➤ $    37,441.27 
#3722019-07-22:-2×TSM 18 Oct 2019 $45.00 C $       380.00 ( $          -3.30 )$    54,051.95 ➤ $    37,441.95 
#3712019-07-22:-1×TRV 18 Oct 2019 $155.00 C $       255.00 ( $          -0.35 )$    53,675.25 ➤ $    37,445.25 
#3702019-07-22:-1×DIS 18 Oct 2019 $145.00 C $       407.00 ( $          -0.80 )$    53,420.60 ➤ $    37,445.60 
#3692019-07-22:-1×D 17 Jan 2020 $80.00 C $       175.00 ( $          -0.35 )$    53,014.40 ➤ $    37,446.40 
#368b2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $      -109.07 )→ #396$    52,839.75 ➤ $    37,446.75 
#368a2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $          -0.50 )$    52,872.82 ➤ $    37,479.82 
#3672019-07-16:-2×CSX 20 Sep 2019 $72.50 P $       150.00 ( $      -548.77 )→ #387$    52,797.32 ➤ $    37,404.32 
#3662019-06-28:-1×WMT 20 Dec 2019 $100.00 P $       213.00 ( $          -0.80 )$    53,196.09 ➤ $    37,803.09 
#3652019-06-28:-1×UTX 15 Nov 2019 $115.00 P $       222.00 ( $          -0.80 )$    52,983.89 ➤ $    37,803.89 
#3642019-06-28:-2×PEP 18 Oct 2019 $110.00 P $       118.00 ( $          -0.99 )$    52,762.69 ➤ $    37,804.69 
#3632019-06-28:-2×EMR 20 Dec 2019 $60.00 P $       374.00 ( $            0.00 )$    52,645.68 ➤ $    37,805.68 
#3622019-06-28:-2×CL 15 Nov 2019 $65.00 P $       248.00 ( $          -1.00 )$    52,271.68 ➤ $    37,805.68 
#3612019-06-28:-3×BEN 17 Jan 2020 $30.00 P $       261.00 ( $            0.00 )$    52,024.68 ➤ $    37,806.68 
#3602019-06-28:-2×ABBV 15 Nov 2019 $60.00 P $       224.00 ( $          -1.00 )$    51,763.68 ➤ $    37,806.68 
#3592019-06-28:-1×TSM 17 Jan 2020 $45.00 C $       105.00 ( $          -0.30 )$    51,540.68 ➤ $    37,807.68 
#3582019-06-28:-2×ABBV 15 Nov 2019 $80.00 C $       303.00 ( $          -0.85 )$    51,435.98 ➤ $    37,807.98 
#3572019-06-21:-3×GPS 17 Jan 2020 $20.00 C $       345.00 ( $          -1.49 )$    51,133.83 ➤ $    37,808.83 
#3562019-06-21:-1×CSCO 18 Oct 2019 $52.50 P $       120.00 ( $          -1.10 )$    50,790.32 ➤ $    37,810.32 
#3552019-05-29:-2×MS 16 Aug 2019 $40.00 P $       262.00 ( $        -18.44 )→ #377$    50,671.42 ➤ $    37,811.42 
#3542019-05-28:-2×DAL 20 Sep 2019 $50.00 P $       310.00 ( $          -1.00 )$    50,427.86 ➤ $    37,567.86 
#3532019-05-28:-2×CMCSA 17 Jan 2020 $45.00 C $       396.00 ( $          -2.58 )$    50,118.86 ➤ $    37,258.86 
#3522019-05-24:-3×SKT 17 Jan 2020 $20.00 C $       188.00 ( $          -3.30 )$    49,725.44 ➤ $    37,261.44 
#3512019-05-22:-2×SKT 17 Jan 2020 $20.00 C $       112.00 ( $          -1.59 )$    49,540.74 ➤ $    37,264.74 
#3502019-05-22:-2×GIS 19 Jul 2019 $50.00 P $       176.00 ( $          -1.00 )$    49,430.33 ➤ $    37,266.33 
#3492019-05-22:-2×ADM 20 Sep 2019 $35.00 P $       110.00 ( $          -0.75 )$    49,255.33 ➤ $    37,091.33 
#3482019-05-20:-1×SNA 20 Sep 2019 $140.00 P $       260.00 ( $          -1.10 )$    49,146.08 ➤ $    36,982.08 
#3472019-05-16:-2×GIS 18 Oct 2019 $47.50 P $       260.00 ( $          -1.60 )$    48,887.18 ➤ $    36,723.18 
#3462019-05-16:-1×AOS 18 Oct 2019 $45.00 P $       180.00 ( $          -1.10 )$    48,628.78 ➤ $    36,724.78 
#3452019-05-15:-2×WFC 18 Oct 2019 $42.50 P $       240.00 ( $          -1.00 )$    48,449.88 ➤ $    36,725.88 
#3442019-05-15:-1×TIF 16 Aug 2019 $90.00 P $       302.00 ( $      -638.29 )→ #384$    48,210.88 ➤ $    36,726.88 
#3432019-05-15:-2×SO 15 Nov 2019 $45.00 P $         88.00 ( $          -0.99 )$    48,547.17 ➤ $    37,063.17 
#3422019-05-15:-2×QCOM 18 Oct 2019 $65.00 P $       156.00 ( $          -0.99 )$    48,460.16 ➤ $    37,064.16 
#3412019-05-15:-1×INTC 20 Sep 2019 $40.00 P $       105.00 ( $          -0.80 )$    48,305.15 ➤ $    37,065.15 
#3402019-05-15:-1×DIS 19 Jul 2019 $140.00 C $       242.00 ( $          -0.80 )$    48,200.95 ➤ $    36,960.95 
#3392019-05-15:-1×AAPL 18 Jun 2021 $205.00 C $    2,323.00 ( $          -0.69 )$    47,959.75 ➤ $    36,719.75 
#3382019-04-23:-1×PG 15 Jan 2021 $105.00 C $       896.00 ( $          -0.81 )$    45,637.44 ➤ $    36,720.44 
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $       163.00 ( $          -0.80 )$    44,742.25 ➤ $    36,721.25 
#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $       328.00 ( $          -0.85 )$    44,580.05 ➤ $    36,722.05 
#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $       145.00 ( $          -3.16 )$    44,252.90 ➤ $    36,722.90 
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $       121.00 ( $          -0.30 )$    44,111.06 ➤ $    36,581.06 
#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $       151.00 ( $        -10.73 )→ #374$    43,990.36 ➤ $    36,460.36 
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $       173.00 ( $        -20.02 )$    43,850.09 ➤ $    36,320.09 
#331b2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $      -585.12 )→ #385$    43,697.11 ➤ $    36,340.11 
#331a2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $          -0.84 )$    44,111.73 ➤ $    36,754.73 
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $       264.00 ( $        -22.68 )→ #358$    43,942.06 ➤ $    36,585.06 
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $       492.00 ( $        -28.19 )→ #375$    43,700.74 ➤ $    36,343.74 
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $       114.00 ( $          -0.79 )$    43,236.93 ➤ $    35,879.93 
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $       224.00 ( $          -0.79 )$    43,123.72 ➤ $    35,766.72 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $       220.00 ( $      -211.48 )→ #344$    42,900.51 ➤ $    35,543.51 
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $       314.00 ( $          -0.99 )$    42,891.99 ➤ $    35,534.99 
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $       295.00 ( $        -10.46 )$    42,578.98 ➤ $    35,221.98 
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $       105.00 ( $          -9.31 )$    42,294.44 ➤ $    34,937.44 
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $       294.00 ( $        -21.78 )$    42,198.75 ➤ $    34,841.75 
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $       170.00 ( $        -68.73 )→ #329$    41,926.53 ➤ $    34,569.53 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $       220.00 ( $          -1.09 )$    41,825.26 ➤ $    34,468.26 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $       130.00 ( $          -0.08 )$    41,606.35 ➤ $    34,469.35 
#3182019-02-22:-3×SKT 17 Jan 2020 $25.00 C $       195.00 ( $        -39.41 )→ #352$    41,476.43 ➤ $    34,469.43 
#3172019-02-22:-1×PM 17 Jan 2020 $105.00 C $         95.00 ( $          -0.79 )$    41,320.84 ➤ $    34,313.84 
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $       287.00 ( $   -1,486.73 )→ #395$    41,226.63 ➤ $    34,314.63 
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    42,426.36 ➤ $    35,514.36 
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    43,043.88 ➤ $    36,131.88 
#3132019-02-22:  2×KO 17 Jan 2020 $52.50 C $         67.00 ( $          -1.58 )$    43,661.40 ➤ $    36,749.40 
#3122019-02-22:-2×INTC 18 Oct 2019 $55.00 C $       670.00 ( $        -98.14 )$    43,595.98 ➤ $    36,750.98 
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $       250.00 ( $          -0.79 )$    43,024.12 ➤ $    36,179.12 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $       209.00 ( $          -1.09 )$    42,774.91 ➤ $    35,929.91 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $          -0.79 )$    42,567.00 ➤ $    35,931.00 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $          -3.16 )$    42,515.79 ➤ $    35,931.79 
#3072019-02-20:-2×ADM 20 Sep 2019 $45.00 C $       234.00 ( $          -0.98 )$    42,305.95 ➤ $    35,934.95 
#3062019-02-07:-1×IP 17 Jan 2020 $47.50 C $       337.00 ( $        -59.18 )$    42,072.93 ➤ $    35,701.93 
#3052019-02-07:-1×INTC 14 Jan 2021 $50.00 C $       679.00 ( $          -1.10 )$    41,795.11 ➤ $    35,424.11 
#3042019-02-07:-1×AAPL 17 Jan 2020 $180.00 C $    1,380.00 ( $   -2,246.75 )→ #339$    41,117.21 ➤ $    35,425.21 
#3032019-01-24:-1×WSM 15 Feb 2019 $55.00 C $         42.00 ( $          -1.09 )$    41,983.96 ➤ $    36,291.96 
#3022019-01-24:-19×F 17 Jan 2020 $10.00 C $       722.00 ( $        -15.25 )$    41,943.05 ➤ $    36,251.05 
#3012019-01-24:-1×F 17 Jan 2020 $10.00 C $         36.00 ( $          -1.58 )$    41,236.30 ➤ $    36,266.30 
#3002019-01-24:-1×AFL 15 Jan 2021 $50.00 C $       420.00 ( $          -1.09 )$    41,201.88 ➤ $    36,267.88 

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.

October 2019:


#3832019-08-02:-1×XOM 18 Oct 2019 $67.50 P $ 135.00 ( $ -0.80 )→ At the money — caution!  
#3822019-08-02:-1×VZ 18 Oct 2019 $52.50 P $ 108.00 ( S -0.96 )→ Out of the money with a  12% safety margin 

#3782019-07-25:-2×NKE 18 Oct 2019 $75.00 P $ 124.00 ( $ -0.99 )→ Out of the money with a  23% safety margin 
#3752019-07-25:-1×AAPL 18 Oct 2019 $180.00 P $ 180.00 ( $ -0.65 )→ Out of the money with a  26% safety margin 
#3722019-07-22:-2×TSM 18 Oct 2019 $45.00 C $ 380.00 ( $ -3.30 )→ In the money by  8% — caution!  
#3712019-07-22:-1×TRV 18 Oct 2019 $155.00 C $ 255.00 ( $ -0.35 )→ Out of the money with a  9% safety margin 
#3702019-07-22:-1×DIS 18 Oct 2019 $145.00 C $ 407.00 ( $ -0.80 )→ Out of the money with a  9% safety margin 
#3642019-06-28:-2×PEP 18 Oct 2019 $110.00 P $ 118.00 ( $ -0.99 )→ Out of the money with a  25% safety margin 
#3562019-06-21:-1×CSCO 18 Oct 2019 $52.50 P $ 120.00 ( $ -1.10 )→ In the money by  10% — caution!  
#3472019-05-16:-2×GIS 18 Oct 2019 $47.50 P $ 260.00 ( $ -1.60 )→ Out of the money with a  14% safety margin 
#3462019-05-16:-1×AOS 18 Oct 2019 $45.00 P $ 180.00 ( $ -1.10 )→ At the money — caution!  
#3452019-05-15:-2×WFC 18 Oct 2019 $42.50 P $ 240.00 ( $ -1.00 )→ Out of the money with a  14% safety margin 
#3422019-05-15:-2×QCOM 18 Oct 2019 $65.00 P $ 156.00 ( $ -0.99 )→ Out of the money with a  14% safety margin 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $ 220.00 ( $ -1.09 )→ Out of the money with a  2% safety margin 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $ 130.00 ( $ -0.08 )→ Out of the money with a  7% safety margin 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $ 209.00 ( $ -1.09 )→ Out of the money with a  2% safety margin 

 November 2019:


#3912019-09-20:-3×INTC 15 Nov 2019 $45.00 P $ 129.00 ( $ -3.83 )→ Out of the money with a  14% safety margin 
#3902019-09-20:-2×INTC 15 Nov 2019 $55.00 C $ 168.00 ( $ -1.59 )→ Out of the money with a  8% safety margin 
#3772019-07-25:-2×MS 15 Nov 2019 $42.00 P $ 263.00 ( $ -0.85 )→ In the money by  4% — caution!   
#3652019-06-28:-1×UTX 15 Nov 2019 $115.00 P $ 222.00 ( $ -0.80 )→ Out of the money with a  15% safety margin 
#3622019-06-28:-2×CL 15 Nov 2019 $65.00 P $ 248.00 ( $ -1.00 )→ Out of the money with a  8% safety margin 
#3602019-06-28:-2×ABBV 15 Nov 2019 $60.00 P $ 224.00 ( $ -1.00 )→ Out of the money with a  23% safety margin 
#3582019-06-28:-2×ABBV 15 Nov 2019 $80.00 C $ 303.00 ( $ -0.85 )→ Out of the money with a  8% safety margin 
#3432019-05-15:-2×SO 15 Nov 2019 $45.00 P $   88.00 ( $ -0.99 )→ Out of the money with a  37% safety margin 

Five options are in the money (or 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:
$  62,741
$  37,819
Last Month:
$  61,359
$  38,865
Difference:
 $    1,382 
$  –1,046

After collecting $1,382 in options income in September, my year to date total is $19,949. This averages about $2,217 per month, which is ahead of the desired monthly average of $1,750.

In 39 months of options trading, I've collected options income totaling $62,741.

While DivGro's focus will continue to be dividend growth investing, options trading certainly is contributing positively to my portfolio's performance.

The exciting thing about collecting options income is that I immediately can deploy that income to buy more dividend growth stocks and so boost DivGro's ability to generate dividend income. 

Thanks for reading! Please subscribe to receive an e-mail whenever I post new articles.
Soon sections of my blog will only be available to subscribers, so I encourage you to sign up now!

2 comments :

  1. Hi,
    I think your INTC 45 Put option open pricing is incorrect. It states $39.55 price at close. But I check on the date, INTC was trading at > $50.

    ReplyDelete
    Replies
    1. Thanks for the note, Stan! Of course, you're right -- I'm fixing it now.

      Delete

Please don't include irrelevant links in comments. I will mark such comments as spam and the comment won't be published. To make me aware of your blog or website, comment on my Blogrole page instead.

Contact Form

Name

Email *

Message *

Follow by Email