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.
This was a quiet month for me, as I did trade any options.
Assigned Options
No options got assigned this month.
Expired Options
No options expired worthless this month.
Cumulative Options Income Summary
As of May 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 18,476.13 $ 7,788.10
Last Month: $ 18,476.13 $ 7,788.10
Difference: $ 0 $ 0
Current unrealized gain/(loss)*: (95.91), down from ($1.513.57) last month, thanks to market rebound.
Total realized and unrealized gain/(loss): $18,380.22
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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.
This was a quiet month for me, as I did trade any options.
Assigned Options
No options got assigned this month.
Expired Options
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.
I did not sell any call options this month.
I did not sell any put 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
Five options will expire next month:
Trade #40: Sold 1 BMY1 put option strike 60 exp 6/19/20 for $768.90 net premium on 12/20/18. It is so far out of the money that its current price 0.0001 says it all. This will expire worthless.
Trade #40: Sold 1 BMY1 put option strike 60 exp 6/19/20 for $768.90 net premium on 12/20/18. It is so far out of the money that its current price 0.0001 says it all. This will expire worthless.
Trade
#50: Sold 1 RCL put option strike 75 exp 6/19/20 for $908.88 net
premium on 2/26/20. It is 27% in the money, very likely to get assigned. I will effectively be buying 100 shares of RCL at 65.91.
Trade #51: Bought 1 RCL call option strike 80 exp 6/19/20 for $1042.09 net premium on 2/26/20. It is 32% out of the money, very likely to expire worthless. This trade was a dumb move in retrospect. I had not expected the stock to drop like a rock back in February, and thought that even at 90.42 breakeven price it was a good entry point.
Trade #52: Sold 1 RCL put option strike 60 exp 6/19/20 for $1398.87 net premium on 3/9/20. It is 9% in the money, likely to get assigned. I will effectively be buying 100 shares of RCL at 46.01.
Trade #53: Bought 1 RCL call option strike 60 exp 6/19/20 for $1100.79 net premium on 3/9/20. It is 9% out of the money, likely to expire worthless. This trade was a dumb move in retrospect. Buying options has been losing me a lot of money so far. I need to stop doing this.
Trade #51: Bought 1 RCL call option strike 80 exp 6/19/20 for $1042.09 net premium on 2/26/20. It is 32% out of the money, very likely to expire worthless. This trade was a dumb move in retrospect. I had not expected the stock to drop like a rock back in February, and thought that even at 90.42 breakeven price it was a good entry point.
Trade #52: Sold 1 RCL put option strike 60 exp 6/19/20 for $1398.87 net premium on 3/9/20. It is 9% in the money, likely to get assigned. I will effectively be buying 100 shares of RCL at 46.01.
Trade #53: Bought 1 RCL call option strike 60 exp 6/19/20 for $1100.79 net premium on 3/9/20. It is 9% out of the money, likely to expire worthless. This trade was a dumb move in retrospect. Buying options has been losing me a lot of money so far. I need to stop doing this.
As of May 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 18,476.13 $ 7,788.10
Last Month: $ 18,476.13 $ 7,788.10
Difference: $ 0 $ 0
Current unrealized gain/(loss)*: (95.91), down from ($1.513.57) last month, thanks to market rebound.
Total realized and unrealized gain/(loss): $18,380.22
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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