Welcome to my monthly options update!
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 February.
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 February.
Expired Options
Five options I sold expired worthless this monthly, securing me a total of $432.65 options income.
Trade #1: Call option on AN strike 65 exp 02/16/18 for $23.91 income after fees. Price at expiration: $53.11, 18% from strike.
Trade #2: Call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees. Price at expiration: $47.95, 4% from strike.
Trade #3: 3 put options on MAT strike 13 exp 02/23/18 for $118.07 income after fees. Price at expiration: $16.64, 28% from strike.
Trade #4: 3 call options on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees. Price at expiration: $17.42, 17% from strike.
Trade #9: Call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees. Price at expiration: $92.89, 14% from strike. I was in the red with the option for a while after I sold it, till about a week prior to exp date when WMT plunged after a poor earnings report. I guess I'll be holding onto these shares for a while.
Trade #1: Call option on AN strike 65 exp 02/16/18 for $23.91 income after fees. Price at expiration: $53.11, 18% from strike.
Trade #2: Call option on ATGE strike 50 exp 02/16/18 for $108.70 income after fees. Price at expiration: $47.95, 4% from strike.
Trade #3: 3 put options on MAT strike 13 exp 02/23/18 for $118.07 income after fees. Price at expiration: $16.64, 28% from strike.
Trade #4: 3 call options on SQQQ strike 21 exp 02/16/18 for $97.07 income after fees. Price at expiration: $17.42, 17% from strike.
Trade #9: Call option on WMT strike 108 exp 02/23/18 for $84.90 income after fees. Price at expiration: $92.89, 14% from strike. I was in the red with the option for a while after I sold it, till about a week prior to exp date when WMT plunged after a poor earnings report. I guess I'll be holding onto these shares for a while.
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 February.
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 February.
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 did not sell any call options in February. The market was going down and it did not seem to make sense to sell call options when prices could be temporarily depressed and snap right back.
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 and hold stocks that have limited downside.
I sold 2 puts in February, netting a total of $458.61 income after fees:
Trade #12: Sold put option on SRCL strike 55 exp 08/17/18 for $259.70 income after fees.
Trade #13: Sold put option on CVS strike 60 exp 08/17/18 for $198.91 income after fees.
SRCL plunged after an earnings report and I sold a put option for $55, a good entry price. CVS is another solid dividend stock near 52-week low so I sold a put option for $60.
Trade #13: Sold put option on CVS strike 60 exp 08/17/18 for $198.91 income after fees.
SRCL plunged after an earnings report and I sold a put option for $55, a good entry price. CVS is another solid dividend stock near 52-week low so I sold a put option for $60.
Options Expiring Next Month
The following option expire in March:
Trade #5: Sold call option on TZA strike 11 exp 03/16/18 for $72.90 income after fees. Currently in the money, 15% above strike. This is looking like it will exercise, which is okay, because eventually TZA will go to zero. I might sell another call option if TZA continues to go up.
Options Income Summary
February 2018
Total Secured
Options Income Options Income
This Month: $ 3906.34 $ 432.65
Last Month: $ 2447.73 $ 0.00
Difference: $ 458.61 $ 432.65
Thanks for reading!
Options Income Summary
February 2018
Total Secured
Options Income Options Income
This Month: $ 3906.34 $ 432.65
Last Month: $ 2447.73 $ 0.00
Difference: $ 458.61 $ 432.65
Thanks for reading!
Looks like a great month, JTF. No assignments and several expirations. Although, maybe you're not so excited about all the call option expirations if you wanted to unload the stock. Thanks for the update.
ReplyDeletehey ED, thanks for stopping by! Yeah, it was a good month for options. Expirations are the best thing to hope for. I am in no hurry to unload the stock.
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