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 May.
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 May.
Expired Options
No options expired in May.
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 May.
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.
I rolled over 1 option in May. When CELG was trading around $76 in mid-May, I rolled CELG 180921P00090000 100 (trade #8) into CELG 190118P00075000 100 (trade #24). I lost $1,419.09 buying back the former option, or $1,059.89 net of premium received from that option. Selling the latter option yielded $609.20 premium. Overall it is a loss of $450.69, if the option expires worthless; otherwise, I would essentially be buying CELG at $79.51. I will likely sell more CELG options if the price drops below 75.
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 1 call in May, netting $63.91 income after fees:
Trade #23: Sold call option on EXC strike 41 exp 06/15/18 for $63.91 income after fees.
EXC is a low growth utility stock, and currently trading at 52-week high, so it made sense to hedge my position from a drop, or to sell it at $41 if it got that high and reinvest my proceeds into higher growth stocks.
Trade #23: Sold call option on EXC strike 41 exp 06/15/18 for $63.91 income after fees.
EXC is a low growth utility stock, and currently trading at 52-week high, so it made sense to hedge my position from a drop, or to sell it at $41 if it got that high and reinvest my proceeds into higher growth stocks.
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 did not sell any puts this month, besides the CELG 190118P00075000 100 as mentioned above.
Options Expiring Next Month
One option expires next month:
Trade #23: Sold call option on EXC strike 41 exp 06/15/18 for $63.91 income after fees. -> Out the money with a thin 1.15% margin of safety. This could expire in the money, but I don't mind selling the stock anyway.
Trade #23: Sold call option on EXC strike 41 exp 06/15/18 for $63.91 income after fees. -> Out the money with a thin 1.15% margin of safety. This could expire in the money, but I don't mind selling the stock anyway.
Cumulative Options Income Summary
As of May 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 4,186.51 $ 484.64
Last Month: $ 4,902.79 $ 575.25
Difference: $ (745.98) $ (1,059.89)
Thanks for reading!
As of May 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 4,186.51 $ 484.64
Last Month: $ 4,902.79 $ 575.25
Difference: $ (745.98) $ (1,059.89)
Thanks for reading!
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