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 option was assigned in July.
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 option was assigned in July.
Expired Options
Two options expired worthless in July:
Trade #10: Sold call option on HSIC strike 55 exp 07/20/18 for $74.75 income after fees. Closed at 75.31, almost 37% above strike. I could have gotten more option premium on this one.
Trade #16: Sold call option on MAT strike 12 exp 07/20/18 for $108.91 income after fees. Closed at 16.64, 28% above strike. Again, I could have gotten more option premium on this one. Better safe than sorry (i.e. getting assigned), I suppose.
Trade #16: Sold call option on MAT strike 12 exp 07/20/18 for $108.91 income after fees. Closed at 16.64, 28% above strike. Again, I could have gotten more option premium on this one. Better safe than sorry (i.e. getting assigned), I suppose.
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 June.
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 did not roll any options in June.
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 new call options in June.
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 one new put option in July:
Trade #25: Sold call option on CAH strike 47.5 exp 01/18/19 for $398.90 income after fees.
With the stock trading near 52-week low around $49, this seems to be good value to commit to buying the stock at 47.5. If it gets assigned, I would be effectively buying it at 43.5, not too bad. Hopefully it will not get assigned, though, and I secure the option income.
Trade #25: Sold call option on CAH strike 47.5 exp 01/18/19 for $398.90 income after fees.
With the stock trading near 52-week low around $49, this seems to be good value to commit to buying the stock at 47.5. If it gets assigned, I would be effectively buying it at 43.5, not too bad. Hopefully it will not get assigned, though, and I secure the option income.
Options Expiring Next Month
Three options expire next month:
Trade #11: Sold 1 AYI 180817P00120000 (put option on AYI strike 120 exp 08/17/18) for $358.90 income after fees. - Out the money with 12% margin of safety. This is unlikely to get assigned.
Trade #12: Sold 1 SRCL 180817P00055000 (put option on SRCL strike 55 exp 08/17/18) for $259.70 income after fees. - Out the money with a wide 28% margin of safety. This is highly unlikely to get assigned, as reflected in the current price of the option $0.01.
Trade #13: Sold 1 CVS 180817P00060000 (put option on CVS strike 60 exp 08/17/18) for $198.91 income after fees. - Out the money with 11% margin of safety. This is unlikely to get assigned, but no hard feelings if it did. (Would I buy CVS today at 11% discount to the current market price? Absolutely!)
Trade #11: Sold 1 AYI 180817P00120000 (put option on AYI strike 120 exp 08/17/18) for $358.90 income after fees. - Out the money with 12% margin of safety. This is unlikely to get assigned.
Trade #12: Sold 1 SRCL 180817P00055000 (put option on SRCL strike 55 exp 08/17/18) for $259.70 income after fees. - Out the money with a wide 28% margin of safety. This is highly unlikely to get assigned, as reflected in the current price of the option $0.01.
Trade #13: Sold 1 CVS 180817P00060000 (put option on CVS strike 60 exp 08/17/18) for $198.91 income after fees. - Out the money with 11% margin of safety. This is unlikely to get assigned, but no hard feelings if it did. (Would I buy CVS today at 11% discount to the current market price? Absolutely!)
Cumulative Options Income Summary
As of July 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 4,555.71 $ (286.07)
Last Month: $ 4,156.81 $ (469.73)
Difference: $ 398.90 $ 183.66
Below is a monthly tracker showing my cumulative total and secured options income. Secured income running total should break zero next month.
Thanks for reading!
As of July 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 4,555.71 $ (286.07)
Last Month: $ 4,156.81 $ (469.73)
Difference: $ 398.90 $ 183.66
Below is a monthly tracker showing my cumulative total and secured options income. Secured income running total should break zero next month.
Thanks for reading!
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