Welcome to my final Options Update article of 2020. With these updates, I keep track of my options income, summarize trades, and provide a running tally of DivGro's options income to date.
I failed to achieve my 2020 goal of collecting at least $24,000 in options income. This year turned out to be a much more challenging year for options trading than 2019!
In December, I executed many trades, many of them defensive trades to avoid assignments and to improve my options portfolio for the coming year. In Part 1, I'll cover trades in which I rolled forward options. Part 2 will present new covered calls and put contracts, as well as closing trades. Finally, Part 3 will present assignments, expired options, and a list of upcoming expiring options.
Recap
In December, I closed five options early and had two assignments and fifteen expirations. Additionally, I rolled forward 23 options and had 29 income-generating trades:
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.
| #562 | 2020-12-11 | : | -4 | × | AAPL 19 Mar 2021 $85.00 P | $ 269.00 | ( $ -1.50 ) | |||
| #504 | 2020-08-21 | : | 4 | × | AAPL 15 Jan 2021 $75.00 P | $ 371.00 | ( $ -47.14 ) | → #562 |
On 11 December, Apple Inc (AAPL) traded above $120 per share, some 60% above the $75 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 19 March 2021 expiration date, simultaneously increasing the strike price to $85. The trade cost about $47 to execute and I collected about $267 for selling the March 2021 puts. I secured $371 of options income by buying back the January 2021 puts.
| #563 | 2020-12-11 | : | -2 | × | CMCSA 19 Mar 2021 $45.00 P | $ 216.00 | ( $ -0.73 ) | |||
| #543 | 2020-10-19 | : | -2 | × | CMCSA 15 Jan 2021 $40.00 P | $ 190.00 | ( $ -23.60 ) | → #563 | ||
On 11 December, Comcast Corporation (CMCSA) traded above $50 per share, some 25% above the $40 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 19 March 2021 expiration date, simultaneously increasing the strike price to $45. The trade cost about $24 to execute and I collected about $215 for selling the March 2021 puts. I secured $190 of options income by buying back the January 2021 puts.
| #564 | 2020-12-11 | : | -1 | × | HRL 18 Jun 2021 $52.50 C | $ 108.00 | ( $ -0.69 ) | |||
| #463 | 2020-03-18 | : | -1 | × | HRL 15 Jan 2021 $52.50 C | $ 520.00 | ( $ -7.93 ) | → #564 |
On 11 December, Hormel Foods Corporation (HRL) traded around $47 per share, some 10% below the $52.50 January 2021 call option I'd sold earlier. With the option deep out of the money, I decided to roll forward the option to the 18 June 2021 expiration date. The trade cost about $8 to execute and I collected about $107 for selling the June 2021 call. I secured $520 of options income by buying back the January 2021 call.
| #565 | 2020-12-11 | : | -2 | × | ICE 19 Mar 2021 $95.00 P | $ 316.00 | ( $ -1.38 ) | |||
| #459 | 2020-03-16 | : | -2 | × | ICE 15 Jan 2021 $75.00 P | $ 2,235.00 | ( $ -38.00 ) | → #565 | ||
On 11 December, Intercontinental Exchange, Inc (ICE) traded above $108 per share, some 44% above the $75 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 19 March 2021 expiration date, simultaneously increasing the strike price to $95. The trade cost about $38 to execute and I collected about $315 for selling the March 2021 puts. I secured $2,235 of options income by buying back the January 2021 puts.
| #566 | 2020-12-11 | : | -1 | × | INTC 18 Jun 2021 $60.00 C | $ 143.00 | ( $ -0.64 ) | |||
| #535 | 2020-09-29 | : | -1 | × | INTC 15 Jan 2021 $60.00 C | $ 102.00 | ( $ -11.72 ) | → #566 | ||
On 11 December, Intel Corporation (INTC) traded around $49 per share, some 18% below the $60 January 2021 call option I'd sold earlier. With the option deep out of the money, I decided to roll forward the option to the 18 June 2021 expiration date. The trade cost about $12 to execute and I collected about $142 for selling the June 2021 call. I secured $102 of options income by buying back the January 2021 call.
| #567 | 2020-12-11 | : | -1 | × | JNJ 19 Mar 2021 $130.00 P | $ 155.00 | ( $ -0.64 ) | |||
| #506 | 2020-08-21 | : | -1 | × | JNJ 15 Jan 2021 $120.00 P | $ 136.00 | ( $ -10.43 ) | → #567 | ||
On 11 December, Johnson & Johnson (JNJ) traded above $152 per share, some 27% above the $120 January 2021 put option I'd sold earlier. With the option so deep out of the money, I decided to roll forward the option to the 19 March 2021 expiration date, simultaneously increasing the strike price to $130. The trade cost about $10 to execute and I collected about $155 for selling the March 2021 put. I secured $136 of options income by buying back the January 2021 put.
| #568 | 2020-12-11 | : | -1 | × | MMM 19 Mar 2021 $150.00 P | $ 260.00 | ( $ -0.64 ) | |||
| #460 | 2020-03-16 | : | -1 | × | MMM 15 Jan 2021 $130.00 P | $ 2,344.00 | ( $ -15.33 ) | → #568 | ||
On 11 December, 3M Company (MMM) traded around $173 per share, some 33% above the $130 January 2021 put option I'd sold earlier. With the option so deep out of the money, I decided to roll forward the option to the 19 March 2021 expiration date, simultaneously increasing the strike price to $150. The trade cost about $15 to execute and I collected about $260 for selling the March 2021 put. I secured $2,344 of options income by buying back the January 2021 put.
| #569 | 2020-12-11 | : | -2 | × | MO 18 Jun 2021 $50.00 C | $ 161.00 | ( $ -0.73 ) | |||
| #497 | 2020-07-24 | : | -2 | × | MO 15 Jan 2021 $50.00 C | $ 130.00 | ( $ -12.31 ) | → #569 | ||
On 11 December, Altria Group, Inc (MO) traded around $42 per share, some 16% below the $50 January 2021 call options I'd sold earlier. With the options deep out of the money, I decided to roll forward the options to the 18 June 2021 expiration date. The trade cost about $12 to execute and I collected about $161 for selling the June 2021 calls. I secured $130 of options income by buying back the January 2021 calls.
| #570 | 2020-12-11 | : | -2 | × | PSX 19 Feb 2021 $60.00 P | $ 544.00 | ( $ -0.28 ) | |||
| #542 | 2020-10-16 | : | -2 | × | PSX 15 Jan 2021 $50.00 P | $ 890.00 | ( $ -57.96 ) | → #570 | ||
On 11 December, Phillips 66 (PSX) traded around $69 per share, some 38% above the $50 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 19 February 2021 expiration date, simultaneously increasing the strike price to $60. The trade cost about $58 to execute and I collected about $544 for selling the February 2021 puts. I secured $890 of options income by buying back the January 2021 puts.
| #571 | 2020-12-11 | : | -2 | × | SBUX 19 Mar 2021 $85.00 P | $ 214.00 | ( $ -1.28 ) | |||
| #461 | 2020-03-16 | : | -2 | × | SBUX 15 Jan 2021 $65.00 P | $ 2,603.00 | ( $ -10.62 ) | → #571 | ||
On 11 December, Starbucks Corporation (SBUX) traded around $103 per share, some 59% above the $65 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 19 March 2021 expiration date, simultaneously increasing the strike price to $85. The trade cost about $11 to execute and I collected about $213 for selling the March 2021 puts. I secured $2,603 of options income by buying back the January 2021 puts.
| #572 | 2020-12-11 | : | -5 | × | T 18 Jun 2021 $37.00 C | $ 195.00 | ( $ -2.43 ) | |||
| #502 | 2020-07-24 | : | -5 | × | T 15 Jan 2021 $35.00 C | $ 232.00 | ( $ -64.90 ) | → #572 | ||
On 11 December, AT&T (T) traded around $31 per share, some 11% below the $35 January 2021 call options I'd sold earlier. With the options deep out of the money, I decided to roll forward the options to the 18 June 2021 expiration date, simultaneously increasing the strike price to $37. The trade cost about $65 to execute and I collected about $193 for selling the June 2021 calls. I secured $232 of options income by buying back the January 2021 calls.
| #573 | 2020-12-11 | : | -3 | × | TJX 16 Apr 2021 $50.00 P | $ 248.00 | ( $ -1.84 ) | |||
| #462 | 2020-03-16 | : | -3 | × | TJX 15 Jan 2021 $45.00 P | $ 2,450.00 | ( $ -46.66 ) | → #573 | ||
On 11 December, The TJX Companies, Inc (TJX) traded around $66 per share, some 47% above the $45 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 16 April 2021 expiration date, simultaneously increasing the strike price to $50. The trade cost about $47 to execute and I collected about $246 for selling the April 2021 puts. I secured $2,450 of options income by buying back the January 2021 puts.
| #574 | 2020-12-11 | : | -2 | × | XOM 16 Apr 2021 $37.50 P | $ 327.00 | ( $ -0.73 ) | |||
| #561 | 2020-11-30 | : | -2 | × | XOM 15 Jan 2021 $35.00 P | $ 128.00 | ( $ -42.19 ) | → #574 | ||
On 11 December, Exxon Mobil Corporation (XOM) traded above $43 per share, some 23% above the $35 January 2021 put options I'd sold earlier. With the options so deep out of the money, I decided to roll forward the options to the 16 April 2021 expiration date, simultaneously increasing the strike price to $37.50. The trade cost about $42 to execute and I collected about $326 for selling the April 2021 puts. I secured $128 of options income by buying back the January 2021 puts.
| #575 | 2020-12-18 | : | -2 | × | ABBV 21 Jan 2022 $120.00 C | $ 857.00 | ( $ -0.74 ) | |||
| #409 | 2019-11-13 | : | -2 | × | ABBV 15 Jan 2021 $90.00 C | $ 1,310.00 | ( $ -2,759.24 ) | → #575 | ||
On 18 December, AbbVie Inc (ABBV) traded around $104 per share, some 16% above the $90 January 2021 call options I'd sold earlier. With the options deep in the money, I decided to roll forward the options to the 21 January 2022 expiration date, simultaneously increasing the strike price to $120. The trade cost about $2,759 to execute and I collected about $856 for selling the January 2022 calls. I secured $1,310 of options income by buying back the January 2021 calls.
| #576 | 2020-12-18 | : | -3 | × | ADM 18 Jun 2021 $60.00 C | $ 156.00 | ( $ -1.84 ) | |||
| #527 | 2020-09-29 | : | -3 | × | ADM 18 Dec 2020 $50.00 C | $ 300.00 | ( $ -18.59 ) | → #576 | ||
On 18 December, Archer-Daniels-Midland Company (ADM) traded around $49 per share, some 2% below the $50 December 2020 call options I'd sold earlier. With the options slightly in the money, I decided to roll forward the options to the 18 June 2021 expiration date, simultaneously increasing the strike price to $60. The trade cost about $19 to execute and I collected about $154 for selling the June 2021 calls. I secured $300 of options income by buying back the December 2020 calls.
| #577 | 2020-12-18 | : | -1 | × | ADP 20 Aug 2021 $200.00 C | $ 595.00 | ( $ -0.70 ) | |||
| #528 | 2020-09-29 | : | -1 | × | ADP 15 Jan 2021 $160.00 C | $ 185.00 | ( $ -1,886.77 ) | → #577 | ||
On 18 December, Automatic Data Processing, Inc (ADP) traded around $178 per share, some 11% above the $160 January 2021 call option I'd sold earlier. With the option deep in the money, I decided to roll forward the option to the 20 August 2021 expiration date, simultaneously increasing the strike price to $200. The trade cost about $1,887 to execute and I collected about $594 for selling the August 2021 call. I secured $185 of option income by buying back the December 2020 call.
| #579 | 2020-12-18 | : | -1 | × | AFL 21 May 2021 $50.00 C | $ 115.00 | ( $ -0.69 ) |
| #529 | 2020-09-29 | : | -1 | × | AFL 15 Jan 2021 $40.00 C | $ 100.00 | ( $ -456.77 ) | → #579 |
On 18 December, Aflac Incorporated (AFL) traded around $43 per share, some 8% above the $40 January 2021 call option I'd sold earlier. With the option in the money, I decided to roll forward the option to the 21 May 2021 expiration date, simultaneously increasing the strike price to $50. The trade cost about $457 to execute and I collected about $115 for selling the May 2021 call. I secured $100 of options income by buying back the January 2021 call.
| #581 | 2020-12-18 | : | -2 | × | BNS 18 Jun 2021 $55.00 C | $ 400.00 | ( $ -0.68 ) | |||
| #531 | 2020-09-29 | : | -2 | × | BNS 18 Dec 2020 $45.00 C | $ 100.00 | ( $ -1,670.70 ) | → #581 | ||
On 18 December, The Bank of Nova Scotia (BNS) traded around $53 per share, some 18% above the $45 December 2020 call options I'd sold earlier. With the options deep in the money, I decided to roll forward the options to the 18 June 2021 expiration date, simultaneously increasing the strike price to $55. The trade cost about $1,671 to execute and I collected about $399 for selling the June 2021 calls. I secured $100 of options income by buying back the December 2020 calls.
| #583 | 2020-12-18 | : | -2 | × | CMCSA 18 Jun 2021 $60.00 C | $ 198.00 | ( $ -0.73 ) | |||
| #539 | 2020-10-16 | : | -2 | × | CMCSA 18 Dec 2020 $47.50 C | $ 202.00 | ( $ -747.60 ) | → #583 | ||
On 18 December, Comcast Corporation (CMCSA) traded around $50 per share, some 5% above the $47.50 December 2020 call options I'd sold earlier. With the options in the money, I decided to roll forward the options to the 18 June 2021 expiration date, simultaneously increasing the strike price to $60. The trade cost about $748 to execute and I collected about $198 for selling the June 2021 calls. I secured $202 of options income by buying back the December 2020 calls.
| #584 | 2020-12-18 | : | -2 | × | CMCSA 18 Jun 2021 $60.00 C | $ 196.00 | ( $ -0.73 ) | |||
| #540 | 2020-10-16 | : | -2 | × | CMCSA 18 Dec 2020 $50.00 C | $ 140.00 | ( $ -253.44 ) | → #584 | ||
On 18 December, Comcast Corporation (CMCSA) traded around $50 per share, right at the $50 December 2020 call options I'd sold earlier. With the options at the money, I decided to roll forward the options to the 18 June 2021 expiration date, simultaneously increasing the strike price to $60. The trade cost about $253 to execute and I collected about $196 for selling the June 2021 calls. I secured $140 of options income by buying back the December 2020 calls.
| #605 | 2020-12-18 | : | -1 | × | PM 19 Mar 2021 $90.00 C | $ 193.00 | ( $ -0.64 ) | |||
| #524 | 2020-09-21 | : | -1 | × | PM 18 Dec 2020 $80.00 C | $ 230.00 | ( $ -568.42 ) | → #605 | ||
On 18 December, Philip Morris International Inc (PM) traded around $85 per share, some 6% above the $80 December 2020 call option I'd sold earlier. With the option in the money, I decided to roll forward the option to the 19 March 2021 expiration date, simultaneously increasing the strike price to $90. The trade cost about $568 to execute and I collected about $192 for selling the March 2021 call. I secured $230 of options income by buying back the December 2020 call.
| #606 | 2020-12-18 | : | -1 | × | RY 16 Jul 2021 $90.00 C | $ 125.00 | ( $ -0.69 ) | |||
| #547 | 2020-10-19 | : | -1 | × | RY 18 Dec 2020 $75.00 C | $ 160.00 | ( $ -651.02 ) | → #606 | ||
On 18 December, Royal Bank of Canada (RY) traded around $81 per share, some 9% above the $75 December 2020 call option I'd sold earlier. With the option in the money, I decided to roll forward the option to the 16 July 2021 expiration date, simultaneously increasing the strike price to $90. The trade cost about $651 to execute and I collected about $124 for selling the July 2021 call. I secured $160 of options income by buying back the December 2020 call.
| #608 | 2020-12-18 | : | -2 | × | TROW 17 Dec 2021 $175.00 C | $ 1,443.00 | ( $ -1.40 ) | |||
| #485 | 2020-07-16 | : | -2 | × | TROW 15 Jan 2021 $135.00 C | $ 2,202.00 | ( $ -3,154.71 ) | → #608 | ||
Concluding Remarks
My year-to-date options income is $15,009, about 62.5% of my goal to collect $24,000 in options income in 2020. This is one goal I did not achieve in 2020!
In Part 1 of this article, I covered 23 trades in which I rolled forward options. Most of these trades involved out of the money options with little remaining options income available. But I also rolled forward several deep in the money covered calls, which was necessary to protect my ownership of the underlying shares.
Part 2 will present closing trades as well as new covered calls and put contracts, and Part 3 will conclude this article by presenting two assignments, fifteen expirations, and a list of upcoming options expirations.
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