Wednesday, January 1, 2020

Options Update: December 2019

Welcome to the final options update article of 2019!

I write monthly update articles to summarize options trades and to keep track of options income. These updates also serve as a status report on open options and the obligations I still have.

I've achieved my 2019 goal to collect at least $21,000 in options income. In fact, I smashed that goal with options income totaling $30,120 in 2019 and easily topped my dividend income of $25,542 in 2019!

This month I'm reporting one expiration and several income-generating trades.

Recap


Through the end of November 2019, I collected options income totaling $29,065 in 2019. 

Below is a snapshot of December's trades, which included an expiration, two trades rolling forward options, and nine trades that generated new options income.



Assigned Options


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

There were no assignments in December.

Expired Options


In December, the following option expired:

#3732019-07-22:-1×VLO 20 Dec 2019 $100.00 C $ 105.00 ( $ -0.68 )

For details on these expirations, please read this article.

I secured options income totaling $104 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.

In December, I did not close any options early.

Rolled Options


Rolling forward options means buying back an option and selling another option with a later expiration date. You can do this to avoid options assignment for in the money options or to collect more options income for out of the money options.

I rolled forward the following options this month:

#4392019-12-18:-1×TSM 21 Jan 2022 $60.00 C $    808.00 ( $        -0.31 )
#3592019-06-28:-1×TSM 17 Jan 2020 $45.00 C $    105.00 ( $ -1,380.59 )→ #439
#4302019-12-12:-2×TROW 17 Jul 2020 $120.00 C $ 2,209.00 ( $        -1.64 )
#4072019-10-18:-2×TROW 20 Dec 2019 $115.00 C $    339.00 ( $ -2,090.59 )→ #430

Taiwan Semiconductor Manufacturing (TSM) traded near $60 per share on 18 December, so I decided to roll forward the option I'd sold and protect my shares. Net of commissions, the trade earned $808 in options income but I relinquished secured options income of $1,276 in the process.

On 12 December, I noticed that T. Rowe Price (TROW) was trading around $124 per share. Rather than chancing assignment, I rolled forward the $115 covered calls to the 17 July 2020, $120 strike price. Net of commissions, the trade generated $2,207 in options income, but it also cost me $1,752 in previously secured options income.

Covered Calls


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

I didn't sell any covered calls in December.

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 December:

#4402019-12-18:-2×XEL 17 Jun 2020 $55.00 P $ 150.00 ( $ -0.21 )
#4382019-12-18:-2×TJX 17 Apr 2020 $55.00 P $ 174.00 ( $ -1.50 )
#4372019-12-18:-1×SBUX 21 Feb 2020 $85.00 P $ 187.00 ( $ -0.80 )
#4362019-12-18:-1×PSX 21 Feb 2020 $110.00 P $ 270.00 ( $ -0.35 )
#4352019-12-18:-1×LYB 20 Mar 2020 $80.00 P $ 120.00 ( $ -0.35 )
#4342019-12-18:-1×ICE 19 Jun 2020 $85.00 P $ 195.00 ( $ -0.35 )
#4332019-12-18:-2×HRL 20 Mar 2020 $40.00 P $ 104.00 ( $ -1.49 )
#4322019-12-18:-1×AMT 17 Apr 2020 $180.00 P $ 200.00 ( $ -0.35 )
#4312019-12-18:-1×ABT 15 May 2020 $75.00 P $ 117.00 ( $ -0.80 )

#440 : 2019-12-18: Sold to Open 2 Contracts of Option XEL Jun 17 2020 55.00 P

I'm willing to buy 200 shares of Xcel Energy (XEL) for $55.00 per share on or before 17 June 2020. XEL closed at $63.57 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-06-17    Number of Days in Trade : 182
Price at Close :  $63.57 per shareDiscount at Strike Price : 13.48%
Strike Price :  $55.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $0.75 per shareOptions Income : $150.00
Commission : -$0.21
Net Premium :  $0.749 per shareNet Options Income : $149.79
Options Yield :  1.18%Annualized Options Yield : 2.36%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $54.25Discount if Exercised : 14.66%

This put option trade yields 1.18%, or 2.36% on an annualized basis. At $63.57 per share, XEL yields 2.55%, so I'm boosting dividend income by a factor of 0.93. If the options are exercised, I'll buy 200 shares at a cost basis of $54.25 per share, a discount of 14.66%.


#438 : 2019-12-18: Sold to Open 2 Contracts of Option TJX Apr 17 2020 55.00 P

I'm willing to buy 200 shares of TJX (TJX) for $55.00 per share on or before 17 April 2020. TJX closed at $60.50 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-04-17    Number of Days in Trade : 121
Price at Close :  $60.50 per shareDiscount at Strike Price : 9.09%
Strike Price :  $55.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $0.87 per shareOptions Income : $174.00
Commission : -$1.50
Net Premium :  $0.863 per shareNet Options Income : $172.50
Options Yield :  1.43%Annualized Options Yield : 4.30%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $54.12Discount if Exercised : 10.54%

This put option trade yields 1.43%, or 4.30% on an annualized basis. At $60.50 per share, TJX yields 1.52%, so I'm boosting dividend income by a factor of 2.83. If the options are exercised, I'll buy 200 shares at a cost basis of $54.12 per share, a discount of 10.54%.


#437 : 2019-12-18: Sold to Open 1 Contract of Option SBUX Feb 21 2020 85.00 P

I'm willing to buy 100 shares of Starbucks (SBUX) for $85.00 per share on or before 21 February 2020. SBUX closed at $87.99 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-02-21    Number of Days in Trade : 65
Price at Close :  $87.99 per shareDiscount at Strike Price : 3.40%
Strike Price :  $85.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.87 per shareOptions Income : $187.00
Commission : -$0.80
Net Premium :  $1.862 per shareNet Options Income : $186.20
Options Yield :  2.12%Annualized Options Yield : 11.89%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $83.12Discount if Exercised : 5.53%

This put option trade yields 2.12%, or 11.89% on an annualized basis. At $87.99 per share, SBUX yields 1.86%, so I'm boosting dividend income by a factor of 6.38. If the option is exercised, I'll buy 100 shares at a cost basis of $83.12 per share, a discount of 5.53%.


#436 : 2019-12-18: Sold to Open 1 Contract of Option PSX Feb 21 2020 110.00 P

I'm willing to buy 100 shares of Phillips 66 (PSX) for $110.00 per share on or before 21 February 2020. PSX closed at $113.04 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-02-21    Number of Days in Trade : 65
Price at Close :  $113.04 per shareDiscount at Strike Price : 2.69%
Strike Price :  $110.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $2.70 per shareOptions Income : $270.00
Commission : -$0.35
Net Premium :  $2.697 per shareNet Options Income : $269.65
Options Yield :  2.39%Annualized Options Yield : 13.40%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $107.30Discount if Exercised : 5.08%

This put option trade yields 2.39%, or 13.40% on an annualized basis. At $113.04 per share, PSX yields 3.18%, so I'm boosting dividend income by a factor of 4.21. If the option is exercised, I'll buy 100 shares at a cost basis of $107.30 per share, a discount of 5.08%.


#435 : 2019-12-18: Sold to Open 1 Contract of Option LYB Mar 20 2020 80.00 P

I'm willing to buy 100 shares of LyondellBasell Industries (LYB) for $80.00 per share on or before 20 March 2020. LYB closed at $95.17 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-03-20    Number of Days in Trade : 93
Price at Close :  $95.17 per shareDiscount at Strike Price : 15.94%
Strike Price :  $80.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.20 per shareOptions Income : $120.00
Commission : -$0.35
Net Premium :  $1.197 per shareNet Options Income : $119.65
Options Yield :  1.26%Annualized Options Yield : 4.94%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $78.80Discount if Exercised : 17.20%

This put option trade yields 1.26%, or 4.94% on an annualized basis. At $95.17 per share, LYB yields 4.41%, so I'm boosting dividend income by a factor of 1.12. If the option is exercised, I'll buy 100 shares at a cost basis of $78.80 per share, a discount of 17.20%.


#434 : 2019-12-18: Sold to Open 1 Contract of Option ICE Jun 19 2020 85.00 P

I'm willing to buy 100 shares of Intercontinental Exchange (ICE) for $85.00 per share on or before 19 June 2020. ICE closed at $91.86 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-06-19    Number of Days in Trade : 184
Price at Close :  $91.86 per shareDiscount at Strike Price : 7.47%
Strike Price :  $85.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.95 per shareOptions Income : $195.00
Commission : -$0.35
Net Premium :  $1.947 per shareNet Options Income : $194.65
Options Yield :  2.12%Annualized Options Yield : 4.21%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $83.05Discount if Exercised : 9.59%

This put option trade yields 2.12%, or 4.21% on an annualized basis. At $91.86 per share, ICE yields 1.20%, so I'm boosting dividend income by a factor of 3.51. If the option is exercised, I'll buy 100 shares at a cost basis of $83.05 per share, a discount of 9.59%.


#433 : 2019-12-18: Sold to Open 2 Contracts of Option HRL Mar 20 2020 40.00 P

I'm willing to buy 200 shares of Hormel Foods (HRL) for $40.00 per share on or before 20 March 2020. HRL closed at $44.42 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-03-20    Number of Days in Trade : 93
Price at Close :  $44.42 per shareDiscount at Strike Price : 9.95%
Strike Price :  $40.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $0.52 per shareOptions Income : $104.00
Commission : -$1.49
Net Premium :  $0.513 per shareNet Options Income : $102.51
Options Yield :  1.15%Annualized Options Yield : 4.53%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $39.47Discount if Exercised : 11.14%

This put option trade yields 1.15%, or 4.53% on an annualized basis. At $44.42 per share, HRL yields 2.09%, so I'm boosting dividend income by a factor of 2.16. If the options are exercised, I'll buy 200 shares at a cost basis of $39.47 per share, a discount of 11.14%.


#432 : 2019-12-18: Sold to Open 1 Contract of Option AMT Apr 17 2020 180.00 P

I'm willing to buy 100 shares of American Tower (AMT) for $180.00 per share on or before 17 April 2020. AMT closed at $216.98 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-04-17    Number of Days in Trade : 121
Price at Close :  $216.98 per shareDiscount at Strike Price : 17.04%
Strike Price :  $180.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $2.00 per shareOptions Income : $200.00
Commission : -$0.35
Net Premium :  $1.997 per shareNet Options Income : $199.65
Options Yield :  0.92%Annualized Options Yield : 2.78%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $178.00Discount if Exercised : 17.97%

This put option trade yields 0.92%, or 2.78% on an annualized basis. At $216.98 per share, AMT yields 1.86%, so I'm boosting dividend income by a factor of 1.49. If the option is exercised, I'll buy 100 shares at a cost basis of $178.00 per share, a discount of 17.97%.


#431 : 2019-12-18: Sold to Open 1 Contract of Option ABT May 15 2020 75.00 P

I'm willing to buy 100 shares of Abbott Laboratories (ABT) for $75.00 per share on or before 15 May 2020. ABT closed at $86.93 per share on the date of my trade:

Open Date :  2019-12-18
Expiration Date :  2020-05-15    Number of Days in Trade : 149
Price at Close :  $86.93 per shareDiscount at Strike Price : 13.72%
Strike Price :  $75.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.17 per shareOptions Income : $117.00
Commission : -$0.80
Net Premium :  $1.162 per shareNet Options Income : $116.20
Options Yield :  1.34%Annualized Options Yield : 3.28%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $73.82Discount if Exercised : 15.08%

This put option trade yields 1.34%, or 3.28% on an annualized basis. At $86.93 per share, ABT yields 1.66%, so I'm boosting dividend income by a factor of 1.98. If the option is exercised, I'll buy 100 shares at a cost basis of $73.82 per share, a discount of 15.08%.



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%. Only the put options trade on PSX fails to 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
#4402019-12-18:-2×XEL 17 Jun 2020 $55.00 P $       150.00 ( $          -0.21 )$    72,911.53 ➤ $    49,640.53 
#4392019-12-18:-1×TSM 21 Jan 2022 $60.00 C $       808.00 ( $          -0.31 )$    72,761.74 ➤ $    49,640.74 
#4382019-12-18:-2×TJX 17 Apr 2020 $55.00 P $       174.00 ( $          -1.50 )$    71,954.05 ➤ $    49,641.05 
#4372019-12-18:-1×SBUX 21 Feb 2020 $85.00 P $       187.00 ( $          -0.80 )$    71,781.55 ➤ $    49,642.55 
#4362019-12-18:-1×PSX 21 Feb 2020 $110.00 P $       270.00 ( $          -0.35 )$    71,595.35 ➤ $    49,643.35 
#4352019-12-18:-1×LYB 20 Mar 2020 $80.00 P $       120.00 ( $          -0.35 )$    71,325.70 ➤ $    49,643.70 
#4342019-12-18:-1×ICE 19 Jun 2020 $85.00 P $       195.00 ( $          -0.35 )$    71,206.05 ➤ $    49,644.05 
#4332019-12-18:-2×HRL 20 Mar 2020 $40.00 P $       104.00 ( $          -1.49 )$    71,011.40 ➤ $    49,644.40 
#4322019-12-18:-1×AMT 17 Apr 2020 $180.00 P $       200.00 ( $          -0.35 )$    70,908.89 ➤ $    49,645.89 
#4312019-12-18:-1×ABT 15 May 2020 $75.00 P $       117.00 ( $          -0.80 )$    70,709.24 ➤ $    49,646.24 
#4302019-12-12:-2×TROW 17 Jul 2020 $120.00 C $    2,209.00 ( $          -1.64 )$    70,593.04 ➤ $    49,647.04 
#4292019-11-27:-1×SBUX 17 Apr 2020 $77.50 P $       158.00 ( $          -1.53 )$    68,385.68 ➤ $    49,648.68 
#4282019-11-26:-1×WMT 19 Jun 2020 $100.00 P $       158.00 ( $          -0.65 )$    68,229.21 ➤ $    49,650.21 
#4272019-11-26:-1×V 20 Mar 2020 $155.00 P $       127.00 ( $          -1.10 )$    68,071.86 ➤ $    49,650.86 
#4262019-11-26:-1×UNP 21 Feb 2020 $160.00 P $       217.00 ( $          -0.80 )$    67,945.96 ➤ $    49,651.96 
#4252019-11-26:-1×NKE 17 Apr 2020 $77.50 P $       102.00 ( $          -1.10 )$    67,729.76 ➤ $    49,652.76 
#4242019-11-26:-1×MSFT 20 Mar 2020 $130.00 P $       119.00 ( $          -1.58 )$    67,628.86 ➤ $    49,653.86 
#4232019-11-26:-1×MRK 17 Apr 2020 $75.00 P $       107.00 ( $          -0.80 )$    67,511.44 ➤ $    49,655.44 
#4222019-11-26:-1×MMM 17 Apr 2020 $160.00 P $       555.00 ( $          -0.81 )$    67,405.24 ➤ $    49,656.24 
#4212019-11-26:-1×MCD 20 Mar 2020 $170.00 P $       126.00 ( $          -0.80 )$    66,851.05 ➤ $    49,657.05 
#4202019-11-26:-1×LOW 17 Apr 2020 $95.00 P $       111.00 ( $          -0.80 )$    66,725.85 ➤ $    49,657.85 
#4192019-11-26:-1×LLY 17 Apr 2020 $100.00 P $       140.00 ( $          -0.65 )$    66,615.65 ➤ $    49,658.65 
#4182019-11-26:-1×JNJ 20 Mar 2020 $120.00 P $       115.00 ( $          -0.80 )$    66,476.30 ➤ $    49,659.30 
#4172019-11-26:-1×ICE 19 Jun 2020 $80.00 P $       133.00 ( $          -0.25 )$    66,362.10 ➤ $    49,660.10 
#4162019-11-13:-2×XOM 17 Apr 2020 $75.00 C $       194.00 ( $          -1.69 )$    66,229.35 ➤ $    49,660.35 
#4152019-11-13:-1×WFC 19 Jun 2020 $60.00 C $       112.00 ( $          -1.10 )$    66,037.04 ➤ $    49,662.04 
#4142019-11-13:-1×TXN 17 Jan 2020 $110.00 P $       144.00 ( $          -1.10 )$    65,926.14 ➤ $    49,663.14 
#4132019-11-13:-5×SKT 19 Jun 2020 $20.00 C $       120.00 ( $          -3.73 )$    65,783.24 ➤ $    49,664.24 
#4122019-11-13:-1×PM 19 Jun 2020 $100.00 C $       102.00 ( $          -0.65 )$    65,666.97 ➤ $    49,667.97 
#4112019-11-13:-1×JNJ 20 Mar 2020 $140.00 C $       163.00 ( $          -0.65 )$    65,565.62 ➤ $    49,668.62 
#4102019-11-13:-1×IBM 17 Apr 2020 $120.00 P $       269.00 ( $          -0.80 )$    65,403.27 ➤ $    49,669.27 
#4092019-11-13:-2×ABBV 15 Jan 2021 $90.00 C $    1,310.00 ( $          -1.52 )$    65,135.07 ➤ $    49,670.07 
#4082019-10-18:-2×TSM 15 Jan 2021 $50.00 C $    1,083.00 ( $            0.00 )$    63,826.59 ➤ $    49,671.59 
#4072019-10-18:-2×TROW 20 Dec 2019 $115.00 C $       339.00 ( $   -2,090.59 )→ #430$    62,743.59 ➤ $    49,671.59 
#4062019-10-18:-2×TJX 17 Jan 2020 $65.00 C $       188.00 ( $            0.00 )$    64,495.18 ➤ $    51,423.18 
#4052019-10-18:-1×ADM 20 Mar 2020 $45.00 C $         53.00 ( $          -1.10 )$    64,307.18 ➤ $    51,423.18 
#4042019-10-01:-1×TJX 17 Apr 2020 $50.00 P $       180.00 ( $          -0.30 )$    64,255.28 ➤ $    51,424.28 
#4032019-10-01:-1×SNA 15 Nov 2019 $145.00 P $       260.00 ( $          -0.35 )$    64,075.58 ➤ $    51,424.58 
#4022019-10-01:-3×PFE 20 Mar 2020 $40.00 C $       132.00 ( $          -1.13 )$    63,815.93 ➤ $    51,164.93 
#4012019-10-01:-1×MRK 15 Nov 2019 $80.00 P $       127.00 ( $          -1.58 )$    63,685.06 ➤ $    51,166.06 
#4002019-10-01:-1×MDT 17 Jan 2020 $100.00 P $       196.00 ( $          -0.80 )$    63,559.64 ➤ $    51,040.64 
#3992019-10-01:-1×HRL 20 Mar 2020 $47.50 C $       125.00 ( $          -0.60 )$    63,364.44 ➤ $    51,041.44 
#3982019-10-01:-2×ADM 20 Mar 2020 $45.00 C $       160.00 ( $          -0.99 )$    63,240.04 ➤ $    51,042.04 
#3972019-10-01:-2×ADM 15 Nov 2019 $40.00 P $       228.00 ( $          -1.00 )$    63,081.03 ➤ $    51,043.03 
#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $       213.00 ( $          -1.59 )$    62,854.03 ➤ $    50,816.03 
#3952019-09-20:-1×MSFT 21 Jan 2022 $155.00 C $    1,490.00 ( $          -0.68 )$    62,642.62 ➤ $    50,817.62 
#3942019-09-20:-2×MO 20 Mar 2020 $50.00 C $       120.00 ( $          -0.99 )$    61,153.30 ➤ $    50,818.30 
#3932019-09-20:-2×MO 15 Jan 2021 $45.00 P $    2,029.00 ( $          -0.88 )$    61,034.29 ➤ $    50,819.29 
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $       182.00 ( $          -0.80 )$    59,006.17 ➤ $    50,820.17 
#3912019-09-20:-3×INTC 15 Nov 2019 $45.00 P $       129.00 ( $          -3.83 )$    58,824.97 ➤ $    50,820.97 
#3902019-09-20:-2×INTC 15 Nov 2019 $55.00 C $       168.00 ( $          -1.59 )$    58,699.80 ➤ $    50,695.80 
#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $       266.00 ( $          -0.64 )$    58,533.39 ➤ $    50,529.39 
#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $       270.00 ( $          -2.56 )$    58,268.03 ➤ $    50,530.03 
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $       820.00 ( $          -1.80 )$    58,000.59 ➤ $    50,532.59 
#3862019-08-16:-1×XOM 17 Jan 2020 $80.00 C $         33.00 ( $          -4.69 )→ #416$    57,182.39 ➤ $    50,534.39 
#3852019-08-16:-1×DGX 21 Feb 2020 $100.00 C $       675.00 ( $          -0.31 )$    57,154.08 ➤ $    50,506.08 
#3842019-08-14:-1×TIF 17 Jan 2020 $85.00 P $       769.00 ( $          -1.66 )$    56,479.39 ➤ $    50,506.39 
#3832019-08-02:-1×XOM 18 Oct 2019 $67.50 P $       135.00 ( $          -0.80 )$    55,712.05 ➤ $    49,739.05 
#3822019-08-02:-1×VZ 18 Oct 2019 $52.50 P $       108.00 ( $          -0.96 )$    55,577.85 ➤ $    49,604.85 
#3812019-08-02:-3×PFE 20 Sep 2019 $40.00 C $       138.00 ( $          -2.39 )$    55,470.81 ➤ $    49,497.81 
#3802019-08-02:-1×MRK 20 Sep 2019 $80.00 P $       110.00 ( $          -1.09 )$    55,335.20 ➤ $    49,362.20 
#3792019-08-02:-1×MDT 20 Sep 2019 $97.50 P $       158.00 ( $          -0.80 )$    55,226.29 ➤ $    49,253.29 
#3782019-07-25:-2×NKE 18 Oct 2019 $75.00 P $       124.00 ( $          -0.99 )$    55,069.09 ➤ $    49,096.09 
#3772019-07-25:-2×MS 15 Nov 2019 $42.00 P $       263.00 ( $          -0.85 )$    54,946.09 ➤ $    48,973.09 
#3762019-07-25:-1×LLY 17 Jan 2020 $85.00 P $       106.00 ( $          -7.74 )→ #419$    54,683.94 ➤ $    48,710.94 
#3752019-07-25:-1×AAPL 18 Oct 2019 $180.00 P $       180.00 ( $          -0.65 )$    54,585.68 ➤ $    48,612.68 
#3742019-07-22:-1×XOM 17 Jan 2020 $80.00 C $       127.00 ( $          -5.32 )→ #416$    54,406.33 ➤ $    48,433.33 
#3732019-07-22:-1×VLO 20 Dec 2019 $100.00 C $       105.00 ( $          -0.68 )$    54,284.65 ➤ $    48,311.65 
#3722019-07-22:-2×TSM 18 Oct 2019 $45.00 C $       380.00 ( $      -946.30 )→ #408$    54,180.33 ➤ $    48,207.33 
#3712019-07-22:-1×TRV 18 Oct 2019 $155.00 C $       255.00 ( $          -0.35 )$    54,746.63 ➤ $    48,773.63 
#3702019-07-22:-1×DIS 18 Oct 2019 $145.00 C $       407.00 ( $          -0.80 )$    54,491.98 ➤ $    48,518.98 
#3692019-07-22:-1×D 17 Jan 2020 $80.00 C $       175.00 ( $          -0.35 )$    54,085.78 ➤ $    48,112.78 
#368b2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $      -109.07 )→ #396$    53,911.13 ➤ $    48,113.13 
#368a2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $          -0.50 )$    53,944.20 ➤ $    48,146.20 
#3672019-07-16:-2×CSX 20 Sep 2019 $72.50 P $       150.00 ( $      -548.77 )→ #387$    53,868.70 ➤ $    48,070.70 
#3662019-06-28:-1×WMT 20 Dec 2019 $100.00 P $       213.00 ( $          -3.44 )→ #428$    54,267.47 ➤ $    48,469.47 
#3652019-06-28:-1×UTX 15 Nov 2019 $115.00 P $       222.00 ( $          -0.80 )$    54,057.91 ➤ $    48,259.91 
#3642019-06-28:-2×PEP 18 Oct 2019 $110.00 P $       118.00 ( $          -0.99 )$    53,836.71 ➤ $    48,038.71 
#3632019-06-28:-2×EMR 20 Dec 2019 $60.00 P $       374.00 ( $          -9.19 )$    53,719.70 ➤ $    47,921.70 
#3622019-06-28:-2×CL 15 Nov 2019 $65.00 P $       248.00 ( $          -1.00 )$    53,354.89 ➤ $    47,556.89 
#3612019-06-28:-3×BEN 17 Jan 2020 $30.00 P $       261.00 ( $            0.00 )$    53,107.89 ➤ $    47,309.89 
#3602019-06-28:-2×ABBV 15 Nov 2019 $60.00 P $       224.00 ( $          -1.00 )$    52,846.89 ➤ $    47,309.89 
#3592019-06-28:-1×TSM 17 Jan 2020 $45.00 C $       105.00 ( $   -1,380.59 )→ #439$    52,623.89 ➤ $    47,086.89 
#3582019-06-28:-2×ABBV 15 Nov 2019 $80.00 C $       303.00 ( $   -1,332.34 )→ #409$    53,899.48 ➤ $    48,362.48 
#3572019-06-21:-3×GPS 17 Jan 2020 $20.00 C $       345.00 ( $      -111.72 )$    54,928.82 ➤ $    49,391.82 
#3562019-06-21:-1×CSCO 18 Oct 2019 $52.50 P $       120.00 ( $          -1.10 )$    54,695.54 ➤ $    49,158.54 
#3552019-05-29:-2×MS 16 Aug 2019 $40.00 P $       262.00 ( $        -18.44 )→ #377$    54,576.64 ➤ $    49,039.64 
#3542019-05-28:-2×DAL 20 Sep 2019 $50.00 P $       310.00 ( $          -1.00 )$    54,333.08 ➤ $    48,796.08 
#3532019-05-28:-2×CMCSA 17 Jan 2020 $45.00 C $       396.00 ( $          -2.58 )$    54,024.08 ➤ $    48,487.08 
#3522019-05-24:-3×SKT 17 Jan 2020 $20.00 C $       188.00 ( $        -26.08 )→ #413$    53,630.66 ➤ $    48,489.66 
#3512019-05-22:-2×SKT 17 Jan 2020 $20.00 C $       112.00 ( $        -16.78 )→ #413$    53,468.74 ➤ $    48,327.74 
#3502019-05-22:-2×GIS 19 Jul 2019 $50.00 P $       176.00 ( $          -1.00 )$    53,373.52 ➤ $    48,232.52 
#3492019-05-22:-2×ADM 20 Sep 2019 $35.00 P $       110.00 ( $          -0.75 )$    53,198.52 ➤ $    48,057.52 
#3482019-05-20:-1×SNA 20 Sep 2019 $140.00 P $       260.00 ( $          -1.10 )$    53,089.27 ➤ $    47,948.27 
#3472019-05-16:-2×GIS 18 Oct 2019 $47.50 P $       260.00 ( $          -1.60 )$    52,830.37 ➤ $    47,689.37 
#3462019-05-16:-1×AOS 18 Oct 2019 $45.00 P $       180.00 ( $          -1.10 )$    52,571.97 ➤ $    47,430.97 
#3452019-05-15:-2×WFC 18 Oct 2019 $42.50 P $       240.00 ( $          -1.00 )$    52,393.07 ➤ $    47,252.07 
#3442019-05-15:-1×TIF 16 Aug 2019 $90.00 P $       302.00 ( $      -638.29 )→ #384$    52,154.07 ➤ $    47,013.07 
#3432019-05-15:-2×SO 15 Nov 2019 $45.00 P $         88.00 ( $          -0.99 )$    52,490.36 ➤ $    47,349.36 
#3422019-05-15:-2×QCOM 18 Oct 2019 $65.00 P $       156.00 ( $          -0.99 )$    52,403.35 ➤ $    47,262.35 
#3412019-05-15:-1×INTC 20 Sep 2019 $40.00 P $       105.00 ( $          -0.80 )$    52,248.34 ➤ $    47,107.34 
#3402019-05-15:-1×DIS 19 Jul 2019 $140.00 C $       242.00 ( $          -0.80 )$    52,144.14 ➤ $    47,003.14 
#3392019-05-15:-1×AAPL 18 Jun 2021 $205.00 C $    2,323.00 ( $          -0.69 )$    51,902.94 ➤ $    46,761.94 
#3382019-04-23:-1×PG 15 Jan 2021 $105.00 C $       896.00 ( $          -0.81 )$    49,580.63 ➤ $    46,762.63 
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $       163.00 ( $          -0.80 )$    48,685.44 ➤ $    46,763.44 
#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $       328.00 ( $          -0.85 )$    48,523.24 ➤ $    46,764.24 
#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $       145.00 ( $          -3.16 )$    48,196.09 ➤ $    46,765.09 
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $       121.00 ( $          -0.30 )$    48,054.25 ➤ $    46,623.25 
#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $       151.00 ( $        -10.73 )→ #374$    47,933.55 ➤ $    46,502.55 
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $       173.00 ( $        -20.02 )$    47,793.28 ➤ $    46,362.28 
#331b2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $      -585.12 )→ #385$    47,640.30 ➤ $    46,209.30 
#331a2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $          -0.84 )$    48,054.92 ➤ $    46,623.92 
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $       264.00 ( $        -22.68 )→ #358$    47,885.25 ➤ $    46,454.25 
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $       492.00 ( $        -28.19 )→ #375$    47,643.93 ➤ $    46,212.93 
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $       114.00 ( $          -0.79 )$    47,180.12 ➤ $    45,749.12 
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $       224.00 ( $          -0.79 )$    47,066.91 ➤ $    45,635.91 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $       220.00 ( $      -211.48 )→ #344$    46,843.70 ➤ $    45,412.70 
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $       314.00 ( $          -0.99 )$    46,835.18 ➤ $    45,404.18 
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $       295.00 ( $        -10.46 )$    46,522.17 ➤ $    45,091.17 
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $       105.00 ( $          -9.31 )$    46,237.63 ➤ $    44,806.63 
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $       294.00 ( $        -21.78 )$    46,141.94 ➤ $    44,710.94 
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $       170.00 ( $        -68.73 )→ #329$    45,869.72 ➤ $    44,438.72 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $       220.00 ( $        -10.59 )→ #407$    45,768.45 ➤ $    44,337.45 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $       130.00 ( $      -128.08 )→ #406$    45,559.04 ➤ $    44,128.04 
#3182019-02-22:-3×SKT 17 Jan 2020 $25.00 C $       195.00 ( $        -39.41 )→ #352$    45,557.12 ➤ $    44,126.12 
#3172019-02-22:-1×PM 17 Jan 2020 $105.00 C $         95.00 ( $        -10.43 )→ #412$    45,401.53 ➤ $    43,970.53 
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $       287.00 ( $   -1,486.73 )→ #395$    45,316.96 ➤ $    43,885.96 
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    46,516.69 ➤ $    45,085.69 
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    47,134.21 ➤ $    45,703.21 
#3132019-02-22:  2×KO 17 Jan 2020 $52.50 C $         67.00 ( $          -1.58 )$    47,751.73 ➤ $    46,320.73 
#3122019-02-22:-2×INTC 18 Oct 2019 $55.00 C $       670.00 ( $        -98.14 )$    47,686.31 ➤ $    46,322.31 
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $       250.00 ( $          -0.79 )$    47,114.45 ➤ $    45,750.45 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $       209.00 ( $        -10.59 )→ #407$    46,865.24 ➤ $    45,501.24 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $          -0.79 )$    46,666.83 ➤ $    45,302.83 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $          -3.16 )$    46,615.62 ➤ $    45,303.62 
#3072019-02-20:-2×ADM 20 Sep 2019 $45.00 C $       234.00 ( $          -0.98 )$    46,405.78 ➤ $    45,306.78 
#3062019-02-07:-1×IP 17 Jan 2020 $47.50 C $       337.00 ( $        -59.18 )$    46,172.76 ➤ $    45,073.76 
#3052019-02-07:-1×INTC 14 Jan 2021 $50.00 C $       679.00 ( $          -1.10 )$    45,894.94 ➤ $    44,795.94 
#3042019-02-07:-1×AAPL 17 Jan 2020 $180.00 C $    1,380.00 ( $   -2,246.75 )→ #339$    45,217.04 ➤ $    44,797.04 
#3032019-01-24:-1×WSM 15 Feb 2019 $55.00 C $         42.00 ( $          -1.09 )$    46,083.79 ➤ $    45,663.79 
#3022019-01-24:-19×F 17 Jan 2020 $10.00 C $       722.00 ( $      -238.39 )$    46,042.88 ➤ $    45,622.88 
#3012019-01-24:-1×F 17 Jan 2020 $10.00 C $         36.00 ( $        -13.32 )$    45,559.27 ➤ $    45,139.27 
#3002019-01-24:-1×AFL 15 Jan 2021 $50.00 C $       420.00 ( $          -1.09 )$    45,536.59 ➤ $    45,116.59 

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.

January 2020:

#4142019-11-13:-1×TXN 17 Jan 2020 $110.00 P $ 144.00 ( $ -1.10 )→ Out of the money with a  17% safety margin 
#4062019-10-18:-2×TJX 17 Jan 2020 $65.00 C $ 188.00 ( $  0.00 )→ Out of the money with a  6% safety margin 
#4002019-10-01:-1×MDT 17 Jan 2020 $100.00 P $ 196.00 ( $ -0.80 )→ Out of the money with a  13% safety margin 
#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $ 213.00 ( $ -1.59 )→ Out of the money with a  1% safety margin 
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $ 182.00 ( $ -0.80 )→ Out of the money with a  4% safety margin 
#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $ 270.00 ( $ -2.56 )→ Out of the money with an  8% safety margin 
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $ 820.00 ( $ -1.80 )→ Out of the money with a  3% safety margin 
#3692019-07-22:-1×D 17 Jan 2020 $80.00 C $ 175.00 ( $ -0.35 )→ In the money by  4% — caution! 
#3612019-06-28:-3×BEN 17 Jan 2020 $30.00 P $ 261.00 ( $  0.00 )→ In the money by  13% — caution! 
#3532019-05-28:-2×CMCSA 17 Jan 2020 $45.00 C $ 396.00 ( $ -2.58 )→ At the money by — caution! 
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $ 163.00 ( $ -0.80 )→ Out of the money with a  9% safety margin 
#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $ 328.00 ( $ -0.85 )→ Out of the money with a  9% safety margin 
#3132019-02-22:  -2×KO 17 Jan 2020 $52.50 C $   67.00 ( $ -1.58 )→ In the money by  5% — caution! 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $   52.00 ( $ -0.79 )→ In the money by  12% — caution! 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $ 213.00 ( $ -3.16 )→ In the money by  12% — caution! 


 February 2020:

#4372019-12-18:-1×SBUX 21 Feb 2020 $85.00 P $ 187.00 ( $ -0.80 )
→ Out of the money with a  3% safety margin 
#4362019-12-18:-1×PSX 21 Feb 2020 $110.00 P $ 270.00 ( $ -0.35 )
→ Out of the money with a  1% safety margin   
#4262019-11-26:-1×UNP 21 Feb 2020 $160.00 P $ 217.00 ( $ -0.80 )
→ Out of the money with a  13% safety margin 
#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $ 266.00 ( $ -0.64 )
→ Out of the money with a  13% safety margin  
#3852019-08-16:-1×DGX 21 Feb 2020 $100.00 C $ 675.00 ( $ -0.31 )
→ In the money by  7% — caution!  

Several options expiring in January are in or at the money, while several are out of the money with small margins of safety. I'll have to monitor these carefully as the options expiration date approaches.

Concluding Remarks


I collected options income in 2019 totaling $30,120, smashing my 2019 options income of $21,000. I'm also very happy to report that my options income easily topped DivGro's dividend income of $25,542!


Total
Options Income
Secured
Options Income
End of Month:
$ 72,912
$ 49,641
Previous Month:
$ 71,857
52,571
This Month:
$  1,055
$ -2,930

In 42 months of options trading, I've collected options income totaling $72,912.

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6 comments :

  1. Just came upon your site after reading some of your articles on Seeking Alpha, thanks for your posts, they're very good and instructive! One question, if I may, how do you calculate your "boosting of dividend income by a factor of X" I have recently found the power of options to boost return, but haven't seen this benefit discussed before. Thanks!

    ReplyDelete
    Replies
    1. Thanks for your comment -- I sell options on dividend-paying stocks. Basically, I calculate the ratio of options income to annualized dividend of the underlying. A factor of 2 means the option brings in the equivalent of two years worth of dividends. Hope this helps.

      Delete
    2. Almost. Using ICE as an example, the dividend is 1.102 per share (91.86 x .012) and the option premium per share is 1.947 for a ratio of 1.764 not 3.51. I'm certain I'm missing something in the calculation. What might that be? Thanks again.

      Delete
    3. My calculation annualizes the option income also. Look at the duration through expiration date. Usually, that's less than 365 days. What would the options income be if I could (theoretically) repeat the trade to get options income for 365 days.

      Delete
  2. Ahh, got it now! Thanks for that. Very interesting site you have. Thanks for making it available.

    ReplyDelete

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