Wednesday, April 21, 2021

Expired Options (April 2021)

After options expiration, I post an article to report on expired options and any actions I took in the week before options expiration. 

I used to write only one options article every month, but with the increase of my options trading in the last few years, those articles became unwieldy. So I've split my reporting up into two monthly articles, one shortly after options expiration day, covering expired options, and one after month's end, covering the remaining options trades. 

This article covers the options that were scheduled to expire on 16 April. 

When options expire, the obligations I have related to those options go away. For puts, the margin set aside as collateral gets released and the possibility of having to buy shares goes away. Likewise, for covered calls, the possibility that my shares will be called away goes away. I consider the options income associated with expired options to be secured

Recap


Here is a summary of the options that were scheduled for expiration on 16 April, as reported in my last Options Update article:

April 2021:

#6002020-12-18:-2×NKE 16 Apr 2021 $95.00 P $       130.00 ( $          -0.87 )
#5882020-12-18:-1×HD 16 Apr 2021 $215.00 P $       180.00 ( $          -0.79 )  
#5852020-12-18:-3×CSCO 16 Apr 2021 $35.00 P $       129.00 ( $          -3.50 )  
#5802020-12-18:-3×BEN 16 Apr 2021 $20.00 P $       144.00 ( $          -0.34 )
#5742020-12-11:-2×XOM 16 Apr 2021 $37.50 P $       327.00 ( $          -0.73 )
#5732020-12-11:-3×TJX 16 Apr 2021 $50.00 P $       248.00 ( $          -1.84 ) 
#5542020-11-30:-1×D 16 Apr 2021 $67.50 P $       112.00 ( $          -0.24 )

All but one of these options expired on 16 April. As for the puts on Cisco Systems, Inc (CSCO), I decided to roll them forward.


Expired Options


NIKE, Inc (NKE) closed at $134.31 per share on options expiration day, about 41% above the $95 puts I'd sold. As a result, the options expired and I secured about $129 in options income. 

NKE is trading for about $129 per share. 

The Home Depot, Inc (HD) closed at $328.08 per share on options expiration day, about 53% above the $215 put option I'd sold. As a result, the option expired and I secured about $179 in options income. 

HD is trading at around $327 per share. 

Franklin Resources, Inc (BEN) closed at $30.05 per share on options expiration day, about 50% above the $20 puts I'd sold. As a result, the options expired and I secured about $144 in options income. 

BEN is trading for about $29 per share. 

Exxon Mobil Corporation (XOM) closed at $56.66 per share on options expiration day, about 51% above the $37.50 puts I'd sold. As a result, the option expired and I secured about $326 in options income. 

XOM is trading around $56 per share. 

The TJX Companies, Inc (TJX) closed at $69.99 per share on options expiration day, some 40% above the $50 puts I'd sold. As a result, the options expired and I secured about $246 in options income. 

TJX is trading for about $68 per share. 

Dominion Energy, Inc (D) closed at $78.89 per share on options expiration day, about 17% above the $67.50 put option I'd sold. As a result, the options expired and I secured about $111 in options income. 

D is trading at around $80 per share. 

As a result of these expirations, I secured options income totaling about $1,135. 

Rolled Forward Options


The $35 puts on CSCO were so deep in the money that I rolled forward the puts early in April. 

On April 7, CSCO traded around $52, some 46% above the $35 puts I'd sold. So I rolled forward the puts to the July 16 expiration date, simultaneously increasing the strike price to $45 and reducing the number of puts to 2.

Closing the $35 puts secured $125 in options income while selling the $45 puts generated income of $114. 

CSCO is trading around $52 per share.

Summary


Of the seven short options that were scheduled to expire on 16 April, I rolled forward one early and allowed the others to expire. As a result, I secured options income totaling about $1,260 and I no longer have any related obligations. For rolling forward the CSCO options, I collected $114 in options 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!

No comments :

Post a Comment

Please don't include 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.

Follow by Email