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
Cumulative Options Income Summary
As of January 2021:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 8,164.50
Last Month: $ 20,619.01 $ 6,275.87
Difference: $ 0 $ 1,888.63
Current unrealized gain/(loss)*: $1,039.43, down from $2,921.93 last month, as I realized gains from the two expired options.
Total realized and unrealized gain/(loss): $9,203.93
Two options expired next month:
Trade #41: Sold 1 SQQQ call option strike 52 exp 1/15/21 for $499.76 net premium on 12/20/18.
Trade #55: Sold 1 FFIV put option strike 110 exp 1/15/21 for $1,388.87 net premium on 3/9/20.
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 January 2021:
Cumulative Cumulative Secured
Options Income Options Income
This Month: $ 20,619.01 $ 8,164.50
Last Month: $ 20,619.01 $ 6,275.87
Difference: $ 0 $ 1,888.63
Current unrealized gain/(loss)*: $1,039.43, down from $2,921.93 last month, as I realized gains from the two expired options.
Total realized and unrealized gain/(loss): $9,203.93
*Note: Unrealized gain increases the chance of eventually securing option income, while unrealized loss does the opposite.
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