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
As I feared, I got assigned the BEN put option strike 32 exp 10/19/18 when the stock closed at 29.76 at option expiry date. I had sold this option for a net income of $174.66. The assignment gave me an implied loss of $224. Thus, secured "income" from this trade was -$49.34.
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
As I feared, I got assigned the BEN put option strike 32 exp 10/19/18 when the stock closed at 29.76 at option expiry date. I had sold this option for a net income of $174.66. The assignment gave me an implied loss of $224. Thus, secured "income" from this trade was -$49.34.
Expired Options
The other BEN option I sold with strike price 29.5 expired worthless, netting me $109.66 secured income. That was a close one.
I sold a few more call options on the 3x inverse ETFs as market volatility went up and stock market went down in October:
Trade #29: Sold 1 EDZ call option strike 65 exp 4/18/19 for $999.65 income after fees.
Trade #30: Sold 1 SQQQ call option strike 13 exp 6/21/19 for $268.91 income after fees.
Trade #31: Sold 1 SQQQ call option strike 13 exp 1/15/21 for $499.76 income after fees. I generally don't like to sell options for such long duration, but willing to make an exception for triple inverse ETFs because unless the market goes down in a straight line, the volatility itself will likely cause the ETF to lose value.
Trade #32: Sold 1 TZA call option strike 10 exp 1/18/19 for $108.91 income after fees.
Trade #33: Sold 1 SRCL put option strike 50 exp 2/15/19 for $198.91 income after fees.
Trade #34: Sold 1 AN put option strike 39 exp 4/18/19 for $349.51 income after fees.
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 closed the following option:
Trade #28: Bought 1 AN put option strike 39 exp 4/18/19 on 10/10/18 for $305.28 income after fees. AN was going down near new 52-week low and I meant to sell the put option, but somehow bought it instead. It turned out to be good trade, at least on the short run, as the option got higher as the stock continued going down. I decided to close it at 3.5, and after $1.09 commission for the closing trade, I netted $43.63 from this trade.
Trade #28: Bought 1 AN put option strike 39 exp 4/18/19 on 10/10/18 for $305.28 income after fees. AN was going down near new 52-week low and I meant to sell the put option, but somehow bought it instead. It turned out to be good trade, at least on the short run, as the option got higher as the stock continued going down. I decided to close it at 3.5, and after $1.09 commission for the closing trade, I netted $43.63 from this trade.
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 October.
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 a few more call options on the 3x inverse ETFs as market volatility went up and stock market went down in October:
Trade #29: Sold 1 EDZ call option strike 65 exp 4/18/19 for $999.65 income after fees.
Trade #30: Sold 1 SQQQ call option strike 13 exp 6/21/19 for $268.91 income after fees.
Trade #31: Sold 1 SQQQ call option strike 13 exp 1/15/21 for $499.76 income after fees. I generally don't like to sell options for such long duration, but willing to make an exception for triple inverse ETFs because unless the market goes down in a straight line, the volatility itself will likely cause the ETF to lose value.
Trade #32: Sold 1 TZA call option strike 10 exp 1/18/19 for $108.91 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 and hold stocks that have limited downside.
Trade #33: Sold 1 SRCL put option strike 50 exp 2/15/19 for $198.91 income after fees.
Trade #34: Sold 1 AN put option strike 39 exp 4/18/19 for $349.51 income after fees.
Trade #35: Sold 1 LKQ put option strike 27.5 exp 5/17/19 for $203.91 income after fees.
These are quality no dividend stocks trading near 52-week lows that I wouldn't mind owning at their respective strike prices.
These are quality no dividend stocks trading near 52-week lows that I wouldn't mind owning at their respective strike prices.
Options Expiring Next Month
One option expires next month:
Trade #18: Sold 1 SRCL put option strike 50 exp 11/16/18 for $298.90 income after fees. - In the money with -5.38% margin of safety, as the stock currently trades at 47.31. This trade is not looking good right now. Chances are it will get assigned.
Trade #18: Sold 1 SRCL put option strike 50 exp 11/16/18 for $298.90 income after fees. - In the money with -5.38% margin of safety, as the stock currently trades at 47.31. This trade is not looking good right now. Chances are it will get assigned.
Cumulative Options Income Summary
As of October 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 7,871.60 $ 1637.02
Last Month: $ 4,892.04 $ 1533.07
Difference: $ 2,979.56 $ 103.95
Below is a monthly tracker showing my cumulative total and secured options income. Secured income running total is going in the right direction. Good.
Thanks for reading!
As of October 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 7,871.60 $ 1637.02
Last Month: $ 4,892.04 $ 1533.07
Difference: $ 2,979.56 $ 103.95
Below is a monthly tracker showing my cumulative total and secured options income. Secured income running total is going in the right direction. Good.
Thanks for reading!
No comments:
Post a Comment