Welcome to my first monthly options update article!
Here, I shall write monthly options update articles to keep track of options trades in my portfolio. Each options update serves as a status report on the open options and the obligations I have. A running tally of all my options trades and income to date are found on the Options page.
Assigned Options
No options got assigned in January.
Expired Options
Here, I shall write monthly options update articles to keep track of options trades in my portfolio. Each options update serves as a status report on the open options and the obligations I have. A running tally of all my options trades and income to date are found on the Options page.
Assigned Options
No options got assigned in January.
Expired Options
No options expired in January.
Closed Options
When an out of the money option goes further out of the money, one may close the option early and secure most of the options income.
I did not close any options early in January.
Rolled Options
An option can be rolled forward by buying back an option and selling another option with a later expiration date. Rolling is done to avoid options assignment for in the money options.
No open options were rolled forward In January.
New Calls Options Sold
Selling calls is a way to earn premiums from time decay on securities that are unlikely to reach a certain strike price within a certain time frame. This is best done on stocks you already own so as to limit liabilities should the underlying security shoot to the moon.
I sold 6 calls in January:
Trade #1: Sold call option on AN strike 65 exp 02/16/18 for $23.91 income after fees.
Trade #2: Sold call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees.
Trade #4: Sold 3 call option on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees.
Trade #5: Sold call option on TZA strike 11 exp 03/16/18 for $72.90 income after fees.
Trade #6: Sold call option on EXC strike 40 exp 04/20/18 for $69.70 income after fees.
Trade #9: Sold call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees.
Trade #2: Sold call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees.
Trade #4: Sold 3 call option on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees.
Trade #5: Sold call option on TZA strike 11 exp 03/16/18 for $72.90 income after fees.
Trade #6: Sold call option on EXC strike 40 exp 04/20/18 for $69.70 income after fees.
Trade #9: Sold call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees.
New Put Options Sold
Selling put options is a way to earn premium for agreeing to buy a stock at a given price for a period of time. This is best done with high quality, buy & hold stocks that have limited downside.
I sold 5 puts in January:
Trade #3: Sold 3 put option on MAT strike 13 exp 02/23/18 for $118.07 income after fees.
Trade #7: Sold put option on AAP strike 90 exp 01/17/20 for $1,079.63 income after fees.
Trade #8: Sold put option on CELG strike 90 exp 09/21/18 for $359.20 income after fees.
Trade #10: Sold put option on HSIC strike 55 exp 07/20/18 for $74.75 income after fees.
Trade #11: Sold put option on AYI strike 120 exp 08/20/18 for $358.90 income after fees.
Trade #7: Sold put option on AAP strike 90 exp 01/17/20 for $1,079.63 income after fees.
Trade #8: Sold put option on CELG strike 90 exp 09/21/18 for $359.20 income after fees.
Trade #10: Sold put option on HSIC strike 55 exp 07/20/18 for $74.75 income after fees.
Trade #11: Sold put option on AYI strike 120 exp 08/20/18 for $358.90 income after fees.
Options Expiring Next Month
The following options expire in February:
Trade #1: Sold call option on AN strike 65 exp 02/16/18 for $23.91 income after fees. -> Out the money with 12% margin of safety.
Trade #2: Sold call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees. -> Out the money with 9% margin of safety.
Trade #4: Sold 3 call option on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees. -> Out the money with 14% margin of safety.
Trade #9: Sold call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees. -> Out the money with 3% margin of safety.
Trade #3: Sold 3 put option on MAT strike 13 exp 02/23/18 for $118.07 income after fees. -> Out the money with 27% margin of safety.
I'll need to monitor a few of these options carefully in order to take the appropriate actions. In particular, the WMT covered call option is only 3% out of the money, and getting that assigned would incur me about $4135 capital gains. I might need to rollover this option.
Options Income Summary
January 2018
Total Secured
Options Income Options Income
This Month: $ 2447.73 $ 0.00
Last Month: $ 0.00 $ 0.00
Difference: $ 2447.73 $ 0.00
Thanks for reading!
Trade #2: Sold call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees. -> Out the money with 9% margin of safety.
Trade #4: Sold 3 call option on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees. -> Out the money with 14% margin of safety.
Trade #9: Sold call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees. -> Out the money with 3% margin of safety.
Trade #3: Sold 3 put option on MAT strike 13 exp 02/23/18 for $118.07 income after fees. -> Out the money with 27% margin of safety.
I'll need to monitor a few of these options carefully in order to take the appropriate actions. In particular, the WMT covered call option is only 3% out of the money, and getting that assigned would incur me about $4135 capital gains. I might need to rollover this option.
Options Income Summary
January 2018
Total Secured
Options Income Options Income
This Month: $ 2447.73 $ 0.00
Last Month: $ 0.00 $ 0.00
Difference: $ 2447.73 $ 0.00
Thanks for reading!
Lots of options activity initiated this month, with some expiring in February. I'll be interested to see the amount of options income you end up securing. I only have put options open at this time, so the market action this past week has me watching things carefully. Hoping things fall your way. Take care.
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