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.
What a month we had in March 2020! The COVID bear market came fast and furious. As a result, I got assigned put options I did not consider likely to get into the money, and sold puts and bought calls in stocks that have fallen significantly and should rebound.
Assigned Options
Both options expiring this month got assigned. Last month, I had considered assignment of these two put options unlikely, but opined that a continued selloff in the market could push this option into the money. And that is exactly what happened! What a spectacular selloff we had in March.
Trade #48: Sold 1 BIDU put option strike 105 exp 3/20/20 for $899.37 net premium on 9/20/19. On expiration, the stock traded at 88.66, giving me the assignment, handing me a loss of $1634, for a net secured income of -$734.63. The stock has recovered some since. This is a long term hold.
Trade #49: Sold 1 SCHW put option strike 35 exp 3/20/20 for $248.90 net premium on 10/3/19. On expiration, the stock traded at 30.75, giving me the assignment, handing me a loss of $425, for a net secured income of -$176.10. The stock has recovered some since. This is probably a long term hold.
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.
What a month we had in March 2020! The COVID bear market came fast and furious. As a result, I got assigned put options I did not consider likely to get into the money, and sold puts and bought calls in stocks that have fallen significantly and should rebound.
Assigned Options
Both options expiring this month got assigned. Last month, I had considered assignment of these two put options unlikely, but opined that a continued selloff in the market could push this option into the money. And that is exactly what happened! What a spectacular selloff we had in March.
Trade #48: Sold 1 BIDU put option strike 105 exp 3/20/20 for $899.37 net premium on 9/20/19. On expiration, the stock traded at 88.66, giving me the assignment, handing me a loss of $1634, for a net secured income of -$734.63. The stock has recovered some since. This is a long term hold.
Trade #49: Sold 1 SCHW put option strike 35 exp 3/20/20 for $248.90 net premium on 10/3/19. On expiration, the stock traded at 30.75, giving me the assignment, handing me a loss of $425, for a net secured income of -$176.10. The stock has recovered some since. This is probably a long term hold.
