Tuesday, April 30, 2019

Options Update: April 2019

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

I got assigned one option this month, as expected:

Trade #34: Sold 1 AN put option strike 39 exp 4/18/19 for $349.51 income: stock closed at 37.83 at expiration, so I got assigned. Implied loss from assignment: $117. Net secured income: $232.51.



Expired Options

One option expired this month:

Trade #29: Sold 1 EDZ call option strike 65 exp 4/18/19 for $999.65 income: ETF closed at 39.27 out of the money 39.58% from strike.

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 Call 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 this month.

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 put options this month.

Options Expiring Next Month

Two options will expire in May:
Trade #35: Sold 1 LKQ put option strike 27.5 exp 5/17/19 for $203.91 income: current price 30.10 out of the money 9.45% from strike. Assignment is unlikely.
Trade #39: Sold 1 SRCL put option strike 45 exp 5/17/19 for $398.91 income: current price 58.39 out of the money 29.76% from strike. Assignment is very unlikely.

Cumulative Options Income Summary

As of April 2019:

                             Cumulative      Cumulative Secured
                          Options Income   Options Income
                             
This Month:           $ 11,880.63             $  3,302.64
Last Month:           $ 11,880.63            $   2,070.48
Difference:             $         0.00            $   1,232.36

Below is a monthly tracker showing my cumulative total and secured options income. Secured income is trending up!

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