Friday, June 28, 2019

Options Update: June 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 did not get assigned any options this month.



Expired Options

Two options expired this month:

Trade #30: Sold 1 SQQQ call option strike 13 exp 6/21/19 for $268.91 income: stock closed at 37.57, or 6.91 adjusted for the 1:5 reverse split, out of the money 46.82% from strike.

Trade #44: Bought 1 PCG put option strike 9 exp 6/21/19 paying $285.33 premium: stock closed at 22.96, out of the money 155.11% from strike, which means I lost $285.33, though I did make $313.43 from a call option I bought on PCG to make up for the loss.

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

One option will expire in July:

Trade #43: Bought 1 BIDU call option strike 140 exp 7/19/19 paying $245.79 premium: current price 115.69 out of the money 17.36% from strike. Assignment is highly unlikely. I was hoping for a quick rebound of the stock, but that has not materialized and probably will not materialize within a month. The sting of losing money buying options will probably keep me away from doing so again for a while.

Cumulative Options Income Summary

As of June 2019:

                             Cumulative      Cumulative Secured
                          Options Income   Options Income
                         
This Month:           $ 14,925.78            $   3,849.04
Last Month:           $ 14,925.78            $   3,865.46
Difference:             $          0.00            $      (16.42)

Below is a monthly tracker showing my cumulative total and secured options income. Not much has changed this month, and overall I am still making money with options.

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