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
Two options got assigned this month, unfortunately, though as expected:
Trade #50: Sold 1 RCL put option strike 75 exp 6/19/20 for $908.88 net premium on 2/26/20. The option closed at 19.73, giving me an implied loss of $1973, for a net secured option income of -$1,064.12.
Trade #52: Sold 1 RCL put option strike 60 exp 6/19/20 for $1398.87 net premium on 3/9/20. The option closed at 4.73, giving me an implied loss of $473, for a net secured option income of $925.87.
Expired Options
Three options expired worthless this month:
Trade #40: Sold 1 BMY1 put option strike 60 exp 6/19/20 for $768.90 net premium on 12/20/18. It had no real chance of assignment, being so far out of the money.
Trade #51: Bought 1 RCL call option strike 80 exp 6/19/20 for $1042.09 net premium on 2/26/20. Stock was at 55.27 at expiration, 31% out of the money.
Trade #53: Bought 1 RCL call option strike 60 exp 6/19/20 for $1100.79 net premium on 3/9/20. Stock was at 55.27 at expiration, 8% out of the money.
Cumulative Options Income Summary
As of June 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 6,275.87
Last Month: $ 20,619.01 $ 7,788.10
Difference: $ 0 $ (1,512.23)
Current unrealized gain/(loss)*: $2,181.57, down from ($95.91) last month, due to realizing $1,512.23 of losses.
Total realized and unrealized gain/(loss): $22,800.58
*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
Two options got assigned this month, unfortunately, though as expected:
Trade #50: Sold 1 RCL put option strike 75 exp 6/19/20 for $908.88 net premium on 2/26/20. The option closed at 19.73, giving me an implied loss of $1973, for a net secured option income of -$1,064.12.
Trade #52: Sold 1 RCL put option strike 60 exp 6/19/20 for $1398.87 net premium on 3/9/20. The option closed at 4.73, giving me an implied loss of $473, for a net secured option income of $925.87.
Expired Options
Trade #40: Sold 1 BMY1 put option strike 60 exp 6/19/20 for $768.90 net premium on 12/20/18. It had no real chance of assignment, being so far out of the money.
Trade #51: Bought 1 RCL call option strike 80 exp 6/19/20 for $1042.09 net premium on 2/26/20. Stock was at 55.27 at expiration, 31% out of the money.
Trade #53: Bought 1 RCL call option strike 60 exp 6/19/20 for $1100.79 net premium on 3/9/20. Stock was at 55.27 at expiration, 8% out of the money.
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
No option will expire next month.
As of June 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 6,275.87
Last Month: $ 20,619.01 $ 7,788.10
Difference: $ 0 $ (1,512.23)
Current unrealized gain/(loss)*: $2,181.57, down from ($95.91) last month, due to realizing $1,512.23 of losses.
Total realized and unrealized gain/(loss): $22,800.58
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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