Thursday, February 13, 2020

Options Update: January 2020

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.

In 2016, I added options trading to my dividend growth investing arsenal. Selling options provided access to additional funds to buy dividend growth stocks, indirectly boosting DivGro's ability to generate dividend income. And for two years running (2018 and 2019), DivGro's options income has exceeded its dividend income!

My 2020 goal to collect at least $24,000 in options income. This is a modest target given 2019's total of $30,120. Still, my 2020 goal represents a 14% increase from last year's goal and I anticipate a trickier market context in 2020.

In January, I had eight expirations and several income-generating trades. I also closed a few options early.

Recap


Below is a snapshot of January's trades, which included several expirations, five trades in which I rolled forward options, and five trades that generated new options income, and four early closing trades. 




Assigned Options


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

There were no assignments in January.

Expired Options


In January, the following option expired:

#4142019-11-13:-1×TXN 17 Jan 2020 $110.00 P $       144.00 ( $          -1.10 )
#4062019-10-18:-2×TJX 17 Jan 2020 $65.00 C $       188.00 ( $            0.00 )
#4002019-10-01:-1×MDT 17 Jan 2020 $100.00 P $       196.00 ( $          -0.80 )
#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $       213.00 ( $          -1.59 )
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $       182.00 ( $          -0.80 )
#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $       270.00 ( $          -2.56 )
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $       820.00 ( $          -1.80 )
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $       163.00 ( $          -0.80 )

For details on these expirations, please read this article.

I secured options income totaling $2,166.55 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.

In January, I closed the following option early:

#4212019-11-26:-1×MCD 20 Mar 2020 $170.00 P $       126.00 ( $        -10.32 )
#4152019-11-13:-1×WFC 19 Jun 2020 $60.00 C $       112.00 ( $        -10.19 )
#4132019-11-13:-5×SKT 19 Jun 2020 $20.00 C $       120.00 ( $        -30.70 )
#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $       266.00 ( $        -13.23 )
Closing these options early secured $559.56 in options income out of a possible $688.44, equivalent to 81% of the possible income. While I could have waited until expiration, I needed to offset some losses incurred after rolling forward in the money options. Usually, I don't close options early unless I can secure at least 90% of the available income.

Rolled Options


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

I rolled forward the following options last month:

#4452020-01-15:-2×KO 18 Sep 2020 $55.00 C $       717.00 ( $          -1.70 )
#3132019-02-22:-2×KO 17 Jan 2020 $52.50 C $         67.00 ( $     -810.26 )→ #445
#4442020-01-15:-1×D 17 Jul 2020 $82.50 C $       267.00 ( $          -0.30 )
#3692019-07-22:-1×D 17 Jan 2020 $80.00 C $       175.00 ( $      -236.64 )→ #444
#4432020-01-15:-2×CMCSA 17 Jul 2020 $47.50 C $       402.00 ( $          -1.50 )
#3532019-05-28:-2×CMCSA 17 Jan 2020 $45.00 C $       396.00 ( $      -260.07 )→ #443
#4422020-01-15:-3×BEN 17 Jul 2020 $27.50 P $       978.00 ( $          -0.34 )
#3612019-06-28:-3×BEN 17 Jan 2020 $30.00 P $       261.00 ( $   -1,413.35 )→ #442
#4412020-01-08:-5×T 21 Jan 2022 $40.00 C $    1,452.00 ( $          -2.11 )
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $      -450.40 )→ #441
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $   -1,801.62 )→ #441

Coca-Cola (KO) traded above $56 on 15 January, well above the $52.50 covered call options I'd sold. I decided to roll forward the options to the September expiration date, simultaneously increasing the strike price to $55 per share. I earned $715 for selling the new options but relinquished $743 in secured options income in the process.



On 15 January, I noticed that Dominion Energy (D) was trading around $83 per share. Rather than chancing an assignment, I rolled forward the $80 covered call to the July 2020, $82.50 strike price. Net of commissions, the trade generated $267 in options income but it cost me $62 in previously secured options income. 

Comcast (CMCSA) traded above $46 per share on 15 January, so I decided to roll forward the covered call options I'd sold to protect my shares. I decided on the July 2020, $47.50 strike price. Net of commissions, the trade earned $401 in options income and secured options income of $136.

On 15 January, I noticed that Franklin Resources (BEN) was trading just above $25 per share, well below the $30 put option I'd sold. Rather than chancing an assignment, I rolled forward the option to the July 2020, $27.50 strike price. Net of commissions, the trade generated $978 in options income but it cost me $1,152 in previously secured options income.

AT&T (T) traded near $39 on 8 January, one day before T's ex-dividend date. With the $35 covered calls deep in the money, the likelihood of assignment was very high. I decided to roll forward these calls to the January 2022 expiration date, simultaneously increasing the strike price to $40. Selling the LEAPs netted $1,450 in options income, but cost $1,087 in previously secured options income.

Covered Calls


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

I sold the following covered call in January:

#4492020-01-21:-2×TJX 17 Apr 2020 $67.50 C $       110.00 ( $          -0.01 )

#449 : 2020-01-21: Sold to Open 2 Contracts of Option TJX Apr 17 2020 67.50 C

I own 200 shares of TJX (TJX) at a cost basis of $44.21 per share. I'm willing to sell these shares for $67.50 on or before 17 April:

Open Date :  2020-01-21
Expiration Date :  2020-04-17    Number of Days in Trade : 87
Cost Basis :  $44.21 per shareGain at Strike Price : 52.68%
Strike Price :  $67.50 per share
Number of Contracts : 2Number of Shares :200
Call Premium :  $0.55 per shareOptions Income : $110.00
Commission : -$0.01
Net Premium :  $0.550 per shareNet Options Income : $109.99
Options Yield :  1.24%Annualized Options Yield : 5.22%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $43.66Gain if Exercised : 54.60%

This covered call yields 1.24%, or 5.22% on an annualized basis. The yield on cost of my TJX position is 2.08%, so I'm boosting dividend income by a factor of 2.51. If the options are exercised, I'll sell 200 shares of TJX at a reduced cost basis of $43.66 per share, for capital gains of 54.60%.


For covered calls, I think an achievable goal is to earn double the dividend yield. With a factor of 2.51, this trade easily achieves my 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 January:

#4502020-01-21:-1×TXN 17 Apr 2020 $115.00 P $       128.00 ( $          -0.80 )
#4482020-01-21:-2×ORCL 19 Jun 2020 $47.50 P $       150.00 ( $          -1.49 )
#4472020-01-21:-2×GILD 15 May 2020 $55.00 P $       162.00 ( $          -0.89 )
#4462020-01-21:-2×CSX 15 May 2020 $67.50 P $       240.00 ( $          -0.90 )

#450 : 2020-01-21: Sold to Open 1 Contract of Option TXN Apr 17 2020 115.00 P

I'm willing to buy 100 shares of Texas Instruments (TXN) for $115.00 per share on or before 17 April. TXN closed at $129.92 per share on the date of my trade:

Open Date :  2020-01-21
Expiration Date :  2020-04-17    Number of Days in Trade : 87
Price at Close :  $129.92 per shareDiscount at Strike Price : 11.48%
Strike Price :  $115.00 per share
Number of Contracts : 1Number of Shares :100
Put Premium :  $1.28 per shareOptions Income : $128.00
Commission : -$0.80
Net Premium :  $1.272 per shareNet Options Income : $127.20
Options Yield :  0.98%Annualized Options Yield : 4.11%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $113.71Discount if Exercised : 12.48%

This put option trade yields 0.98%, or 4.11% on an annualized basis. At $129.92 per share, TXN yields 2.77%, so I'm boosting dividend income by a factor of 1.48. If the option is exercised, I'll buy 100 shares at a cost basis of $113.71 per share, a discount of 12.48%.


#448 : 2020-01-21: Sold to Open 2 Contracts of Option ORCL Jun 19 2020 47.50 P

I'm willing to buy 200 shares of Oracle (ORCL) for $47.50 per share on or before 19 June. ORCL closed at $55.22 per share on the date of my trade:

Open Date :  2020-01-21
Expiration Date :  2020-06-19    Number of Days in Trade : 150
Price at Close :  $55.22 per shareDiscount at Strike Price : 13.98%
Strike Price :  $47.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $0.75 per shareOptions Income : $150.00
Commission : -$1.49
Net Premium :  $0.743 per shareNet Options Income : $148.51
Options Yield :  1.34%Annualized Options Yield : 3.27%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $46.74Discount if Exercised : 15.35%

This put option trade yields 1.34%, or 3.27% on an annualized basis. At $55.22 per share, ORCL yields 1.74%, so I'm boosting dividend income by a factor of 1.88. If the options are exercised, I'll buy 200 shares at a cost basis of $46.74 per share, a discount of 15.35%.


#447 : 2020-01-21: Sold to Open 2 Contracts of Option GILD May 15 2020 55.00 P

I'm willing to buy 200 shares of Gilead Sciences (GILD) for $55.00 per share on or before 15 May. GILD closed at $62.63 per share on the date of my trade:

Open Date :  2020-01-21
Expiration Date :  2020-05-15    Number of Days in Trade : 115
Price at Close :  $62.63 per shareDiscount at Strike Price : 12.18%
Strike Price :  $55.00 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $0.81 per shareOptions Income : $162.00
Commission : -$0.89
Net Premium :  $0.806 per shareNet Options Income : $161.11
Options Yield :  1.29%Annualized Options Yield : 4.09%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $54.19Discount if Exercised : 13.48%

This put option trade yields 1.29%, or 4.09% on an annualized basis. At $62.63 per share, GILD yields 4.34%, so I'm boosting dividend income by a factor of 0.94. If the options are exercised, I'll buy 200 shares at a cost basis of $54.19 per share, a discount of 13.48%.


#446 : 2020-01-21: Sold to Open 2 Contracts of Option CSX May 15 2020 67.50 P

I'm willing to buy 200 shares of CSX (CSX) for $67.50 per share on or before 15 May. CSX closed at $74.83 per share on the date of my trade:

Open Date :  2020-01-21
Expiration Date :  2020-05-15    Number of Days in Trade : 115
Price at Close :  $74.83 per shareDiscount at Strike Price : 9.80%
Strike Price :  $67.50 per share
Number of Contracts : 2Number of Shares :200
Put Premium :  $1.20 per shareOptions Income : $240.00
Commission : -$0.90
Net Premium :  $1.196 per shareNet Options Income : $239.10
Options Yield :  1.60%Annualized Options Yield : 5.07%
----------------------------  ----------------------------------------------------  -----------
Commission if Exercised : $0.00
Cost Basis if Exercised : $66.30Discount if Exercised : 11.41%

This put option trade yields 1.60%, or 5.07% on an annualized basis. At $74.83 per share, CSX yields 1.28%, so I'm boosting dividend income by a factor of 3.96. If the options are exercised, I'll buy 200 shares at a cost basis of $66.30 per share, a discount of 11.41%.


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%. All of these put trades will result in discounts of at least 10%!

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
#4502020-01-21:-1×TXN 17 Apr 2020 $115.00 P $       128.00 ( $          -0.80 )$    72,485.45 ➤ $    48,572.45 
#4492020-01-21:-2×TJX 17 Apr 2020 $67.50 C $       110.00 ( $          -0.01 )$    72,358.25 ➤ $    48,573.25 
#4482020-01-21:-2×ORCL 19 Jun 2020 $47.50 P $       150.00 ( $          -1.49 )$    72,248.26 ➤ $    48,573.26 
#4472020-01-21:-2×GILD 15 May 2020 $55.00 P $       162.00 ( $          -0.89 )$    72,099.75 ➤ $    48,574.75 
#4462020-01-21:-2×CSX 15 May 2020 $67.50 P $       240.00 ( $          -0.90 )$    71,938.64 ➤ $    48,575.64 
#4452020-01-15:-2×KO 18 Sep 2020 $55.00 C $       717.00 ( $          -1.70 )$    71,699.54 ➤ $    48,576.54 
#4442020-01-15:-1×D 17 Jul 2020 $82.50 C $       267.00 ( $          -0.30 )$    70,984.24 ➤ $    48,578.24 
#4432020-01-15:-2×CMCSA 17 Jul 2020 $47.50 C $       402.00 ( $          -1.50 )$    70,717.54 ➤ $    48,578.54 
#4422020-01-15:-3×BEN 17 Jul 2020 $27.50 P $       978.00 ( $          -0.34 )$    70,317.04 ➤ $    48,580.04 
#4412020-01-08:-5×T 21 Jan 2022 $40.00 C $    1,452.00 ( $          -2.11 )$    69,339.38 ➤ $    48,580.38 
#4402019-12-18:-2×XEL 17 Jun 2020 $55.00 P $       150.00 ( $          -0.21 )$    67,889.49 ➤ $    48,582.49 
#4392019-12-18:-1×TSM 21 Jan 2022 $60.00 C $       808.00 ( $          -0.31 )$    67,739.70 ➤ $    48,582.70 
#4382019-12-18:-2×TJX 17 Apr 2020 $55.00 P $       174.00 ( $          -1.50 )$    66,932.01 ➤ $    48,583.01 
#4372019-12-18:-1×SBUX 21 Feb 2020 $85.00 P $       187.00 ( $          -0.80 )$    66,759.51 ➤ $    48,584.51 
#4362019-12-18:-1×PSX 21 Feb 2020 $110.00 P $       270.00 ( $          -0.35 )$    66,573.31 ➤ $    48,585.31 
#4352019-12-18:-1×LYB 20 Mar 2020 $80.00 P $       120.00 ( $          -0.35 )$    66,303.66 ➤ $    48,585.66 
#4342019-12-18:-1×ICE 19 Jun 2020 $85.00 P $       195.00 ( $          -0.35 )$    66,184.01 ➤ $    48,586.01 
#4332019-12-18:-2×HRL 20 Mar 2020 $40.00 P $       104.00 ( $          -1.49 )$    65,989.36 ➤ $    48,586.36 
#4322019-12-18:-1×AMT 17 Apr 2020 $180.00 P $       200.00 ( $          -0.35 )$    65,886.85 ➤ $    48,587.85 
#4312019-12-18:-1×ABT 15 May 2020 $75.00 P $       117.00 ( $          -0.80 )$    65,687.20 ➤ $    48,588.20 
#4302019-12-12:-2×TROW 17 Jul 2020 $120.00 C $    2,209.00 ( $          -1.64 )$    65,571.00 ➤ $    48,589.00 
#4292019-11-27:-1×SBUX 17 Apr 2020 $77.50 P $       158.00 ( $          -1.53 )$    63,363.64 ➤ $    48,590.64 
#4282019-11-26:-1×WMT 19 Jun 2020 $100.00 P $       158.00 ( $          -0.65 )$    63,207.17 ➤ $    48,592.17 
#4272019-11-26:-1×V 20 Mar 2020 $155.00 P $       127.00 ( $          -1.10 )$    63,049.82 ➤ $    48,592.82 
#4262019-11-26:-1×UNP 21 Feb 2020 $160.00 P $       217.00 ( $          -0.80 )$    62,923.92 ➤ $    48,593.92 
#4252019-11-26:-1×NKE 17 Apr 2020 $77.50 P $       102.00 ( $          -1.10 )$    62,707.72 ➤ $    48,594.72 
#4242019-11-26:-1×MSFT 20 Mar 2020 $130.00 P $       119.00 ( $          -1.58 )$    62,606.82 ➤ $    48,595.82 
#4232019-11-26:-1×MRK 17 Apr 2020 $75.00 P $       107.00 ( $          -0.80 )$    62,489.40 ➤ $    48,597.40 
#4222019-11-26:-1×MMM 17 Apr 2020 $160.00 P $       555.00 ( $          -0.81 )$    62,383.20 ➤ $    48,598.20 
#4212019-11-26:-1×MCD 20 Mar 2020 $170.00 P $       126.00 ( $        -10.32 )$    61,829.01 ➤ $    48,599.01 
#4202019-11-26:-1×LOW 17 Apr 2020 $95.00 P $       111.00 ( $          -0.80 )$    61,713.33 ➤ $    48,483.33 
#4192019-11-26:-1×LLY 17 Apr 2020 $100.00 P $       140.00 ( $          -0.65 )$    61,603.13 ➤ $    48,484.13 
#4182019-11-26:-1×JNJ 20 Mar 2020 $120.00 P $       115.00 ( $          -0.80 )$    61,463.78 ➤ $    48,484.78 
#4172019-11-26:-1×ICE 19 Jun 2020 $80.00 P $       133.00 ( $          -0.25 )$    61,349.58 ➤ $    48,485.58 
#4162019-11-13:-2×XOM 17 Apr 2020 $75.00 C $       194.00 ( $          -1.69 )$    61,216.83 ➤ $    48,485.83 
#4152019-11-13:-1×WFC 19 Jun 2020 $60.00 C $       112.00 ( $        -10.19 )$    61,024.52 ➤ $    48,487.52 
#4142019-11-13:-1×TXN 17 Jan 2020 $110.00 P $       144.00 ( $          -1.10 )$    60,922.71 ➤ $    48,385.71 
#4132019-11-13:-5×SKT 19 Jun 2020 $20.00 C $       120.00 ( $        -30.70 )$    60,779.81 ➤ $    48,242.81 
#4122019-11-13:-1×PM 19 Jun 2020 $100.00 C $       102.00 ( $          -0.65 )$    60,690.51 ➤ $    48,153.51 
#4112019-11-13:-1×JNJ 20 Mar 2020 $140.00 C $       163.00 ( $          -0.65 )$    60,589.16 ➤ $    48,154.16 
#4102019-11-13:-1×IBM 17 Apr 2020 $120.00 P $       269.00 ( $          -0.80 )$    60,426.81 ➤ $    48,154.81 
#4092019-11-13:-2×ABBV 15 Jan 2021 $90.00 C $    1,310.00 ( $          -1.52 )$    60,158.61 ➤ $    48,155.61 
#4082019-10-18:-2×TSM 15 Jan 2021 $50.00 C $    1,083.00 ( $            0.00 )$    58,850.13 ➤ $    48,157.13 
#4072019-10-18:-2×TROW 20 Dec 2019 $115.00 C $       339.00 ( $   -2,090.59 )→ #430$    57,767.13 ➤ $    48,157.13 
#4062019-10-18:-2×TJX 17 Jan 2020 $65.00 C $       188.00 ( $            0.00 )$    59,518.72 ➤ $    49,908.72 
#4052019-10-18:-1×ADM 20 Mar 2020 $45.00 C $         53.00 ( $          -1.10 )$    59,330.72 ➤ $    49,720.72 
#4042019-10-01:-1×TJX 17 Apr 2020 $50.00 P $       180.00 ( $          -0.30 )$    59,278.82 ➤ $    49,721.82 
#4032019-10-01:-1×SNA 15 Nov 2019 $145.00 P $       260.00 ( $          -0.35 )$    59,099.12 ➤ $    49,722.12 
#4022019-10-01:-3×PFE 20 Mar 2020 $40.00 C $       132.00 ( $          -1.13 )$    58,839.47 ➤ $    49,462.47 
#4012019-10-01:-1×MRK 15 Nov 2019 $80.00 P $       127.00 ( $          -1.58 )$    58,708.60 ➤ $    49,463.60 
#4002019-10-01:-1×MDT 17 Jan 2020 $100.00 P $       196.00 ( $          -0.80 )$    58,583.18 ➤ $    49,338.18 
#3992019-10-01:-1×HRL 20 Mar 2020 $47.50 C $       125.00 ( $          -0.60 )$    58,387.98 ➤ $    49,142.98 
#3982019-10-01:-2×ADM 20 Mar 2020 $45.00 C $       160.00 ( $          -0.99 )$    58,263.58 ➤ $    49,143.58 
#3972019-10-01:-2×ADM 15 Nov 2019 $40.00 P $       228.00 ( $          -1.00 )$    58,104.57 ➤ $    49,144.57 
#3962019-09-20:-1×ORCL 17 Jan 2020 $52.50 P $       213.00 ( $          -1.59 )$    57,877.57 ➤ $    48,917.57 
#3952019-09-20:-1×MSFT 21 Jan 2022 $155.00 C $    1,490.00 ( $          -0.68 )$    57,666.16 ➤ $    48,706.16 
#3942019-09-20:-2×MO 20 Mar 2020 $50.00 C $       120.00 ( $          -0.99 )$    56,176.84 ➤ $    48,706.84 
#3932019-09-20:-2×MO 15 Jan 2021 $45.00 P $    2,029.00 ( $          -0.88 )$    56,057.83 ➤ $    48,707.83 
#3922019-09-20:-1×LOW 17 Jan 2020 $125.00 C $       182.00 ( $          -0.80 )$    54,029.71 ➤ $    48,708.71 
#3912019-09-20:-3×INTC 15 Nov 2019 $45.00 P $       129.00 ( $          -3.83 )$    53,848.51 ➤ $    48,527.51 
#3902019-09-20:-2×INTC 15 Nov 2019 $55.00 C $       168.00 ( $          -1.59 )$    53,723.34 ➤ $    48,402.34 
#3892019-09-20:-2×GILD 21 Feb 2020 $75.00 C $       266.00 ( $        -13.23 )$    53,556.93 ➤ $    48,235.93 
#3882019-09-20:-2×GILD 17 Jan 2020 $60.00 P $       270.00 ( $          -2.56 )$    53,304.16 ➤ $    47,983.16 
#3872019-09-20:-2×CSX 17 Jan 2020 $70.00 P $       820.00 ( $          -1.80 )$    53,036.72 ➤ $    47,715.72 
#3862019-08-16:-1×XOM 17 Jan 2020 $80.00 C $         33.00 ( $          -4.69 )→ #416$    52,218.52 ➤ $    46,897.52 
#3852019-08-16:-1×DGX 21 Feb 2020 $100.00 C $       675.00 ( $          -0.31 )$    52,190.21 ➤ $    46,869.21 
#3842019-08-14:-1×TIF 17 Jan 2020 $85.00 P $       769.00 ( $          -1.66 )$    51,515.52 ➤ $    46,869.52 
#3832019-08-02:-1×XOM 18 Oct 2019 $67.50 P $       135.00 ( $          -0.80 )$    50,748.18 ➤ $    46,102.18 
#3822019-08-02:-1×VZ 18 Oct 2019 $52.50 P $       108.00 ( $          -0.96 )$    50,613.98 ➤ $    45,967.98 
#3812019-08-02:-3×PFE 20 Sep 2019 $40.00 C $       138.00 ( $          -2.39 )$    50,506.94 ➤ $    45,860.94 
#3802019-08-02:-1×MRK 20 Sep 2019 $80.00 P $       110.00 ( $          -1.09 )$    50,371.33 ➤ $    45,725.33 
#3792019-08-02:-1×MDT 20 Sep 2019 $97.50 P $       158.00 ( $          -0.80 )$    50,262.42 ➤ $    45,616.42 
#3782019-07-25:-2×NKE 18 Oct 2019 $75.00 P $       124.00 ( $          -0.99 )$    50,105.22 ➤ $    45,459.22 
#3772019-07-25:-2×MS 15 Nov 2019 $42.00 P $       263.00 ( $          -0.85 )$    49,982.21 ➤ $    45,336.21 
#3762019-07-25:-1×LLY 17 Jan 2020 $85.00 P $       106.00 ( $          -7.74 )→ #419$    49,720.06 ➤ $    45,074.06 
#3752019-07-25:-1×AAPL 18 Oct 2019 $180.00 P $       180.00 ( $          -0.65 )$    49,621.80 ➤ $    44,975.80 
#3742019-07-22:-1×XOM 17 Jan 2020 $80.00 C $       127.00 ( $          -5.32 )→ #416$    49,442.45 ➤ $    44,796.45 
#3732019-07-22:-1×VLO 20 Dec 2019 $100.00 C $       105.00 ( $          -0.68 )$    49,320.77 ➤ $    44,674.77 
#3722019-07-22:-2×TSM 18 Oct 2019 $45.00 C $       380.00 ( $      -946.30 )→ #408$    49,216.45 ➤ $    44,570.45 
#3712019-07-22:-1×TRV 18 Oct 2019 $155.00 C $       255.00 ( $          -0.35 )$    49,782.75 ➤ $    45,136.75 
#3702019-07-22:-1×DIS 18 Oct 2019 $145.00 C $       407.00 ( $          -0.80 )$    49,528.10 ➤ $    44,882.10 
#3692019-07-22:-1×D 17 Jan 2020 $80.00 C $       175.00 ( $      -236.64 )→ #444$    49,121.90 ➤ $    44,475.90 
#368b2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $      -109.07 )→ #396$    49,183.54 ➤ $    44,537.54 
#368a2019-07-16:-1×ORCL 20 Sep 2019 $55.00 P $         76.00 ( $          -0.50 )$    49,216.61 ➤ $    44,570.61 
#3672019-07-16:-2×CSX 20 Sep 2019 $72.50 P $       150.00 ( $      -548.77 )→ #387$    49,141.11 ➤ $    44,495.11 
#3662019-06-28:-1×WMT 20 Dec 2019 $100.00 P $       213.00 ( $          -3.44 )→ #428$    49,539.88 ➤ $    44,893.88 
#3652019-06-28:-1×UTX 15 Nov 2019 $115.00 P $       222.00 ( $          -0.80 )$    49,330.32 ➤ $    44,684.32 
#3642019-06-28:-2×PEP 18 Oct 2019 $110.00 P $       118.00 ( $          -0.99 )$    49,109.12 ➤ $    44,463.12 
#3632019-06-28:-2×EMR 20 Dec 2019 $60.00 P $       374.00 ( $          -9.19 )$    48,992.11 ➤ $    44,346.11 
#3622019-06-28:-2×CL 15 Nov 2019 $65.00 P $       248.00 ( $          -1.00 )$    48,627.30 ➤ $    43,981.30 
#3612019-06-28:-3×BEN 17 Jan 2020 $30.00 P $       261.00 ( $   -1,413.35 )→ #442$    48,380.30 ➤ $    43,734.30 
#3602019-06-28:-2×ABBV 15 Nov 2019 $60.00 P $       224.00 ( $          -1.00 )$    49,532.65 ➤ $    44,886.65 
#3592019-06-28:-1×TSM 17 Jan 2020 $45.00 C $       105.00 ( $   -1,380.59 )→ #439$    49,309.65 ➤ $    44,663.65 
#3582019-06-28:-2×ABBV 15 Nov 2019 $80.00 C $       303.00 ( $   -1,332.34 )→ #409$    50,585.24 ➤ $    45,939.24 
#3572019-06-21:-3×GPS 17 Jan 2020 $20.00 C $       345.00 ( $      -111.72 )$    51,614.58 ➤ $    46,968.58 
#3562019-06-21:-1×CSCO 18 Oct 2019 $52.50 P $       120.00 ( $          -1.10 )$    51,381.30 ➤ $    46,735.30 
#3552019-05-29:-2×MS 16 Aug 2019 $40.00 P $       262.00 ( $        -18.44 )→ #377$    51,262.40 ➤ $    46,616.40 
#3542019-05-28:-2×DAL 20 Sep 2019 $50.00 P $       310.00 ( $          -1.00 )$    51,018.84 ➤ $    46,372.84 
#3532019-05-28:-2×CMCSA 17 Jan 2020 $45.00 C $       396.00 ( $      -260.07 )→ #443$    50,709.84 ➤ $    46,063.84 
#3522019-05-24:-3×SKT 17 Jan 2020 $20.00 C $       188.00 ( $        -26.08 )→ #413$    50,573.91 ➤ $    45,927.91 
#3512019-05-22:-2×SKT 17 Jan 2020 $20.00 C $       112.00 ( $        -16.78 )→ #413$    50,411.99 ➤ $    45,765.99 
#3502019-05-22:-2×GIS 19 Jul 2019 $50.00 P $       176.00 ( $          -1.00 )$    50,316.77 ➤ $    45,670.77 
#3492019-05-22:-2×ADM 20 Sep 2019 $35.00 P $       110.00 ( $          -0.75 )$    50,141.77 ➤ $    45,495.77 
#3482019-05-20:-1×SNA 20 Sep 2019 $140.00 P $       260.00 ( $          -1.10 )$    50,032.52 ➤ $    45,386.52 
#3472019-05-16:-2×GIS 18 Oct 2019 $47.50 P $       260.00 ( $          -1.60 )$    49,773.62 ➤ $    45,127.62 
#3462019-05-16:-1×AOS 18 Oct 2019 $45.00 P $       180.00 ( $          -1.10 )$    49,515.22 ➤ $    44,869.22 
#3452019-05-15:-2×WFC 18 Oct 2019 $42.50 P $       240.00 ( $          -1.00 )$    49,336.32 ➤ $    44,690.32 
#3442019-05-15:-1×TIF 16 Aug 2019 $90.00 P $       302.00 ( $      -638.29 )→ #384$    49,097.32 ➤ $    44,451.32 
#3432019-05-15:-2×SO 15 Nov 2019 $45.00 P $         88.00 ( $          -0.99 )$    49,433.61 ➤ $    44,787.61 
#3422019-05-15:-2×QCOM 18 Oct 2019 $65.00 P $       156.00 ( $          -0.99 )$    49,346.60 ➤ $    44,700.60 
#3412019-05-15:-1×INTC 20 Sep 2019 $40.00 P $       105.00 ( $          -0.80 )$    49,191.59 ➤ $    44,545.59 
#3402019-05-15:-1×DIS 19 Jul 2019 $140.00 C $       242.00 ( $          -0.80 )$    49,087.39 ➤ $    44,441.39 
#3392019-05-15:-1×AAPL 18 Jun 2021 $205.00 C $    2,323.00 ( $          -0.69 )$    48,846.19 ➤ $    44,200.19 
#3382019-04-23:-1×PG 15 Jan 2021 $105.00 C $       896.00 ( $          -0.81 )$    46,523.88 ➤ $    44,200.88 
#3372019-04-22:-1×WBA 17 Jan 2020 $65.00 C $       163.00 ( $          -0.80 )$    45,628.69 ➤ $    44,201.69 
#3362019-04-22:-2×WBA 17 Jan 2020 $65.00 C $       328.00 ( $          -0.85 )$    45,466.49 ➤ $    44,039.49 
#3352019-04-04:-1×WBA 18 Apr 2019 $55.00 P $       145.00 ( $          -3.16 )$    45,139.34 ➤ $    44,040.34 
#3342019-04-04:-1×HRL 20 Sep 2019 $45.00 C $       121.00 ( $          -0.30 )$    44,997.50 ➤ $    43,898.50 
#3332019-03-27:-1×XOM 20 Sep 2019 $85.00 C $       151.00 ( $        -10.73 )→ #374$    44,876.80 ➤ $    43,777.80 
#3322019-03-27:-2×PFE 20 Sep 2019 $45.00 C $       173.00 ( $        -20.02 )$    44,736.53 ➤ $    43,637.53 
#331b2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $      -585.12 )→ #385$    44,583.55 ➤ $    43,484.55 
#331a2019-03-27:-1×DGX 16 Aug 2019 $95.00 C $       170.50 ( $          -0.84 )$    44,998.17 ➤ $    43,899.17 
#3302019-03-27:-2×ABBV 16 Aug 2019 $90.00 C $       264.00 ( $        -22.68 )→ #358$    44,828.50 ➤ $    43,729.50 
#3292019-03-27:-1×AAPL 16 Aug 2019 $170.00 P $       492.00 ( $        -28.19 )→ #375$    44,587.18 ➤ $    43,488.18 
#3282019-03-25:-1×VLO 21 Jun 2019 $95.00 C $       114.00 ( $          -0.79 )$    44,123.37 ➤ $    43,024.37 
#3272019-03-25:-1×VLO 17 May 2019 $80.00 P $       224.00 ( $          -0.79 )$    44,010.16 ➤ $    42,911.16 
#3262019-03-25:-1×TIF 17 May 2019 $100.00 P $       220.00 ( $      -211.48 )→ #344$    43,786.95 ➤ $    42,687.95 
#3252019-03-25:-2×GILD 16 Aug 2019 $70.00 C $       314.00 ( $          -0.99 )$    43,778.43 ➤ $    42,679.43 
#3242019-03-25:-1×DIS 21 Jun 2019 $105.00 P $       295.00 ( $        -10.46 )$    43,465.42 ➤ $    42,366.42 
#3232019-02-28:-1×MSFT 17 May 2019 $100.00 P $       105.00 ( $          -9.31 )$    43,180.88 ➤ $    42,081.88 
#3222019-02-28:-2×JPM 21 Jun 2019 $95.00 P $       294.00 ( $        -21.78 )$    43,085.19 ➤ $    41,986.19 
#3212019-02-28:-1×AAPL 17 May 2019 $155.00 P $       170.00 ( $        -68.73 )→ #329$    42,812.97 ➤ $    41,713.97 
#3202019-02-22:-1×TROW 18 Oct 2019 $110.00 C $       220.00 ( $        -10.59 )→ #407$    42,711.70 ➤ $    41,612.70 
#3192019-02-22:-2×TJX 18 Oct 2019 $60.00 C $       130.00 ( $      -128.08 )→ #406$    42,502.29 ➤ $    41,403.29 
#3182019-02-22:-3×SKT 17 Jan 2020 $25.00 C $       195.00 ( $        -39.41 )→ #352$    42,500.37 ➤ $    41,401.37 
#3172019-02-22:-1×PM 17 Jan 2020 $105.00 C $         95.00 ( $        -10.43 )→ #412$    42,344.78 ➤ $    41,245.78 
#3162019-02-22:-1×MSFT 18 Oct 2019 $125.00 C $       287.00 ( $   -1,486.73 )→ #395$    42,260.21 ➤ $    41,161.21 
#3152019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    43,459.94 ➤ $    42,360.94 
#3142019-02-22:-1×MO 17 Jan 2020 $50.00 P $       448.00 ( $   -1,065.52 )→ #393$    44,077.46 ➤ $    42,978.46 
#3132019-02-22:-2×KO 17 Jan 2020 $52.50 C $         67.00 ( $      -810.26 )→ #445$    44,694.98 ➤ $    43,595.98 
#3122019-02-22:-2×INTC 18 Oct 2019 $55.00 C $       670.00 ( $        -98.14 )$    45,438.24 ➤ $    44,339.24 
#3112019-02-22:-1×HSY 18 Apr 2019 $110.00 P $       250.00 ( $          -0.79 )$    44,866.38 ➤ $    43,767.38 
#3102019-02-20:-1×TROW 18 Oct 2019 $110.00 C $       209.00 ( $        -10.59 )→ #407$    44,617.17 ➤ $    43,518.17 
#3092019-02-20:-1×T 17 Jan 2020 $35.00 C $         52.00 ( $      -450.40 )→ #441$    44,418.76 ➤ $    43,319.76 
#3082019-02-20:-4×T 17 Jan 2020 $35.00 C $       213.00 ( $   -1,801.62 )→ #441$    44,817.16 ➤ $    43,718.16 
#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.

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 )
→ In the money by  18% — caution! 
#4262019-11-26:-1×UNP 21 Feb 2020 $160.00 P $       217.00 ( $          -0.80 )
→ Out of the money with a  15% safety margin 
#3852019-08-16:-1×DGX 21 Feb 2020 $100.00 C $       675.00 ( $          -0.31 )
→ In the money by  12 % — caution! 

 March 2020:


#4352019-12-18:-1×LYB 20 Mar 2020 $80.00 P $       120.00 ( $          -0.35 )
→ Out of the money with a  2% safety margin 
#4332019-12-18:-2×HRL 20 Mar 2020 $40.00 P $       104.00 ( $          -1.49 )
→ Out of the money with a  18% safety margin  
#4272019-11-26:-1×V 20 Mar 2020 $155.00 P $       127.00 ( $          -1.10 )
→ Out of the money with a  33% safety margin 
#4242019-11-26:-1×MSFT 20 Mar 2020 $130.00 P $       119.00 ( $          -1.58 )
→ Out of the money with a  45% safety margin  
#4182019-11-26:-1×JNJ 20 Mar 2020 $120.00 P $       115.00 ( $          -0.80 )
→ Out of the money with a  27% safety margin  
#4112019-11-13:-1×JNJ 20 Mar 2020 $140.00 C $       163.00 ( $          -0.65 )
→ In the money by  8 % — caution!  
#4052019-10-18:-1×ADM 20 Mar 2020 $45.00 C $         53.00 ( $          -1.10 )
→ In the money by  2 % — caution!   
#4022019-10-01:-3×PFE 20 Mar 2020 $40.00 C $       132.00 ( $          -1.13 )
→ Out of the money with a  5% safety margin 
#3992019-10-01:-1×HRL 20 Mar 2020 $47.50 C $       125.00 ( $          -0.60 )
→ At the money  — caution!  
#3982019-10-01:-2×ADM 20 Mar 2020 $45.00 C $       160.00 ( $          -0.99 )
→ In the money by  2 % — caution!   
#3942019-09-20:-2×MO 20 Mar 2020 $50.00 C $       120.00 ( $          -0.99 )
→ Out of the money with a  8% safety margin 

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



Unfortunately, January kicked off with a slow start! Rolling forwarrd several options not only cost me $1,069 in previously secured options income, I also had to pay $427 to out of pocket in the process. We'll see how the month of February goes!


Total
Options Income
Secured
Options Income
End of Month:
$ 72,485
$ 48,572
Previous Month:
$ 71,912
49,641
This Month:
$   -427
$ -1,069

In 43 months of options trading, I've collected options income totaling $72,485.

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