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 option got assigned this month.
Expired Options
No option expired worthless this month.
Cumulative Options Income Summary
As of December 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 6,275.87
Last Month: $ 20,619.01 $ 6,275.87
Difference: $ 0 $ 0
Current unrealized gain/(loss)*: $2,921.93, up from $2,687.02 last month.
Total realized and unrealized gain/(loss): $23,540.94
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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
Two options will expire next month:
Trade #41: Sold 1 SQQQ call option strike 52 exp 1/15/21 for $499.76 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 #55: Sold 1 FFIV put option strike 110 exp 1/15/21 for $1,388.87 net premium on 3/9/20. It is 60% out of the money, very likely to expire worthless.
As of December 2020:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 6,275.87
Last Month: $ 20,619.01 $ 6,275.87
Difference: $ 0 $ 0
Current unrealized gain/(loss)*: $2,921.93, up from $2,687.02 last month.
Total realized and unrealized gain/(loss): $23,540.94
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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