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 SRCL put option strike 50 exp 11/16/18 when the stock closed at 46.04 at option expiry date. I had sold this option for a net income of $298.90. The assignment gave me an implied loss of $396. Thus, secured "income" from this trade was -$97.10.
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 SRCL put option strike 50 exp 11/16/18 when the stock closed at 46.04 at option expiry date. I had sold this option for a net income of $298.90. The assignment gave me an implied loss of $396. Thus, secured "income" from this trade was -$97.10.
Expired Options
No options expired worthless this month.
I sold a call option this month:
Trade #36: Sold 2 BEN call option strike 30 exp 1/18/19 for $548.42 income after fees.
At the time I sold the option, BEN looked poised to down further below 30. Plus the stock pays too high a dividend compared to the market, so either way I don't mind parting with it. I am somewhat regretting it as the stock has staged a rally after I sold the call option and last traded at 33.89, giving me an implied loss of $778 so far, not good.
Trade #37: Sold 1 CELG put option strike 70 exp 1/17/20 for $923.90 income after fees.
Trade #38: Sold 1 SRCL put option strike 45 exp 5/17/19 for $398.91 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. Yes, I know I just suffered an assignment in SRCL at 50 which I though was great value when I sold that option, but I really think the stock is cheap and should go higher in the long term.
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 this month.
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 this month.
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 call option this month:
Trade #36: Sold 2 BEN call option strike 30 exp 1/18/19 for $548.42 income after fees.
At the time I sold the option, BEN looked poised to down further below 30. Plus the stock pays too high a dividend compared to the market, so either way I don't mind parting with it. I am somewhat regretting it as the stock has staged a rally after I sold the call option and last traded at 33.89, giving me an implied loss of $778 so far, not good.
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 #37: Sold 1 CELG put option strike 70 exp 1/17/20 for $923.90 income after fees.
Trade #38: Sold 1 SRCL put option strike 45 exp 5/17/19 for $398.91 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. Yes, I know I just suffered an assignment in SRCL at 50 which I though was great value when I sold that option, but I really think the stock is cheap and should go higher in the long term.
Options Expiring Next Month
No option expires next month. This is the calm before the storm as I have 7 options expiring in Jan.
Cumulative Options Income Summary
As of November 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 9,742.83 $ 1,539.92
Last Month: $ 7,871.60 $ 1,637.02
Difference: $ 1,871.23 $ (97.10)
Below is a monthly tracker showing my cumulative total and secured options income.
Thanks for reading!
As of November 2018:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 9,742.83 $ 1,539.92
Last Month: $ 7,871.60 $ 1,637.02
Difference: $ 1,871.23 $ (97.10)
Below is a monthly tracker showing my cumulative total and secured options income.
Thanks for reading!
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