This page will be dedicated to my yearly options trades. I will still announce all trades on my main page. The profit totals are before brokerage fees and I plan on calculating an end-of-year profit after fees.
My current open options:
12/19/12 Sold 1 KMI June 22 '13 $32.50 Put @ 1.18
12/26/12 Sold 1 MO Jun 22 '13 $30 Put @ 1.32
12/27/12 Sold 1 CSX Aug 17 '13 $20 Put @ 2.00
01/24/13 Sold 1 SWY Sept 21 '13 $20 Call @ 1.40
02/12/13 Sold 1 KO Aug 17 '13 $37.50 Put @ 1.71
02/27/13 Sold 1 LO Sep 21 '13 $37.50 Put @ 2.97
03/01/13 Sold 3 BBVA July 20 '13 $9 Puts @ .70
03/06/13 Sold 2 INTC Jan 18 '14 $22 Puts @ 2.23
03/26/13 Sold 3 BBVA Oct 19 '13 $8 Puts @ 0.75
04/08/13 Sold 1 INTC Oct 19 '13 $22 Put @ 2.28
04/15/13 Sold 2 PAAS July 20 '13 $14 Put @ 1.47
04/25/13 Sold 1 COP Nov 16 '13 $55 Put @ 2.52
05/02/13 Sold 1 TEVA Dec 21 '13 $37.50 Put @ 2.50
05/09/13 Sold 1 BBL Dec 21 '13 $55 Put @ 3.00
Closed out (2013):
Total Profit: $2544 (before commissions)
05/07/13 BTC 1 CAT Nov 16 '13 $70 Put @ .88
04/17/13 Sold 1 CAT Nov 16 '13 $70 Put @ 2.65
Profit: $177
05/06/13 Bought-to-Close 1 CAT Aug 17 '13 $85 Put @ 2.9
02/21/13 Sold 1 CAT Aug 17 '13 $85 Put @ 4.00
Profit: $110
04/24/13 Bought-To-Close 1 RTN Aug 17 '13 $50 Put @ .50
02/04/13 Sold 1 RTN Aug 17 '13 $50 Put @ 2.05
Profit: $155
04/21/13 Expired 1 WM Apr 20 '13 $30 Put @ 1.35
10/02/12 Sold 1 WM Apr 20 '13 $30 Put @ 1.35
Profit: $135
04/17/13 Bought-To-Close 1 INTC July 20 '13 $21 Put @ .75
11/08/12 Sold 1 INTC July 20 '13 $21 Put @ 1.96
Profit: $121
04/04/13 Bought-To-Close 1 LO June 22 '13 $38.33 Put @ .90
01/16/13 Sold 1 LO June 22 '13 $38.33 Put @ 2.72
Profit: $182
04/03/13 Bought-To-Close 1 DRI July 20 '13 $44 Put @ 0.45
02/13/13 Sold 1 DRI July 20 '13 $44 Put @ 2.31
Profit: $186
03/27/13 Bought-To-Close 1 LO Jan 18 '14 $40 Put @ $3.75
03/06/13 Sold 1 LO Jan 18 '14 $40 Put @ 5.35
Profit: $160
03/25/13 Bought-To-Close 2 BBVA Jan 18 '14 $10 Calls @ .70
01/11/13 Sold 2 BBVA Jan 18 '14 $10 Calls @ 1.40
Profit: $140
03/07/13 100 shares called away
01/07/13 Sold 1 WM July 20 '13 $34 Call @ 1.3
Cost Basis:
03/06/13 Bought-To-Close 2 INTC Oct 19 '13 $22 Puts @ 1.79
01/08/13 Sold 2 INTC Oct 19 '13 $22 Puts @ 2.53
Profit: $148
02/27/13 Bought-To-Close 1 SWY Jun 22 '13 $17 Put @ .25
12/27/12 Sold 1 SWY Jun 22 '13 $17 Put @ 1.55
Profit: $130
02/21/13 Bought-To-Close 1 PM Sept 21 '13 $85 Put @ 2.46
01/30/13 Sold 1 PM Sept 21 '13 $85 Put @ 4.23
Profit: $177
02/16/13 Expired
09/14/12 Sold 1 TGH Feb 16 '13 $30 Put @ 2.10
Profit: $210
01/19/13 100 shares called away
09/13/12 Sold 1 TSM Jan 19 '13 $15 Call @ .91
Cost Basis: $11.22/share
01/19/13 Expired
09/04/12 Sold 4 BBVA Jan 19 '13 $6 Puts @ .40
Profit: $160
01/19/13 Expired
10/25/12 Sold 1 NSC Jan 19 '13 $60 Put @ 2.10
Profit: $210
01/07/13 Call assignment - 200 shares of BBVA called away @ $8
09/04/12 Sold 2 BBVA Jan 19 '13 $8 Calls @ .60
01/04/13 Bought to Close 1 NSC March 16 '13 $67.50 Put @ 3.74
09/20/12 Sold 1 NSC March 16 '13 $67.50 Put @ 5.17
Profit: $143
Closed Out (2012): All trades listed at link below.
Total Profit: $2719 (before commissions)
All of these trades can be found on my 2012 Year-End options post here.
You're making out like a bandit on those puts. Looks like fun!
ReplyDeleteHey CI
DeleteHonestly, this options account was made to satisfy my natural need to gamble. I'm actually doing fairly well so far so I may up my stakes eventually. I'm keeping about 15% of the value of my portfolio in here to play around with and never want to exceed 20%. PG had a quick pop and I closed out too soon and left money on the table. My only loss was CHK that I sold early because it made me nervous. It rallied shortly thereafter and I would have profited from it as well. Hindsight is 20/20 though.
Hey AB,
ReplyDeleteI noticed you recently bought to close your Sept DOW put option. I'm thinking of closing out one of my open options and was wondering how you go about determining when to buy/sell to close. If I buy to close at today's prices I'll receive 38.72% of the premium in only 30.49% of the days. I don't think there's much chance of the option getting assigned barring another 2008 situation. Just spitballing here to see what you like to do.
Also I'd be looking at a total return over 9.09% which is annualized to 15.23%. All returns are accounting for brokerage fees but not taxes.
DeleteHi Passive IP,
DeleteI don't have a set rule that I use and it's really case-by-case.
If I've sold a put on a company that I'd like to own more of anyways and I have enough cash set aside to buy the shares if they get assigned then I may just let the put run its course.
I recently let a COP put expire worthless but I would have had no problem buying additional shares at a discount. The bigger decisions are when the PUT is in the money close to expiration, you have to figure out what you want to do. I bought back my PG put because I decided I didn't want to tie up that much cash and found some better opportunities. I would have done well just letting the shares get assigned though. Hindsight is always 20/20.
A couple reasons that I close early are if it's a speculative play that I don't necessarily want to own more shares of or I'd rather free up some cash for another trade. I closed CHK earlier in the year, pure speculation play, after doing more research and not trusting the management. That is actually the only option trade I lost money on. The shares ended up rallying and I wouldn't have been assigned shares anyways but you just never know. I closed DOW out early because the shares were showing a lot of weakness. Shares were down more than the overall market on several days and it's a highly volatile stock. I decided that there was a better chance to get DOW at a cheaper price if I waited.
I took a glance at your options page. I assume you are only selling puts/calls and not buying them? I also assume you are contemplating buying back the BAC Jan 17 2014 puts from your comment above? I also noticed your INTC put is in the money and will likely get assigned. I like INTC long-term and actually have a limit order to sell some puts if it goes much lower myself. As for the BAC shares, It really depends on what you are trying to accomplish. Personally, I haven't traded options with that long of an expiration. If you see a better play that you are freeing up the money for then go for it. If you think BAC will continue going up then hang on to the puts and collect the full premium.
Sorry if I don't have a good answer for you but you are the one that knows you situation the best.
It's all good. I was just trying to bounce some ideas off someone. Most the people I work with don't invest let alone dabble in options so it's hard to talk it through. The pros for letting it ride is that I think BAC will be above the $7 strike come expiration so I would receive the full premium which would be a 23.47% return that is 11.99% annualized. I'm tempted to free up some more cash in case there is a much better buying opportunity coming up. This won't do much but it does free up an extra $700.
DeleteThe pros for buying it back is that I can capture approx 40.54% of the premium after fees in only 31% of the days. That would be a total return of 9.52% annualized to 15.95% which is higher than if I let it go to expiration. Plus it then allows me to use that $700 for possible other options or purchases whichever are the best at the time.
If you read my post about the ADM puts I'm thinking of the $26 Dec 12 put which would give me a 11.16% annualized return if it expires and or lower my current cost basis if it's exercised.
Just trying to see if you have exit strategies on your trades. I should have bought the BAC put back earlier this year when BAC was trading for over $10. If I remember correctly I could have bought the put back and for the whole trade gotten about 50% of the premium over like 10-15% of the time.
I don't think I'll be selling any more puts that are this long-dated. It opens up to me questioning what to do a lot more. Luckily if I do let it ride it's only $700 tied up.
Thanks for the help anyways.
Normally I would let the put just run its course but I think the biggest drawback is that it's such a long ways from expiration. I wouldn't mind getting some more BAC b/c my buy-write is looking like it's going to get exercised a long with the INTC put. Since I'll probably lose 200 shares of BAC in October that'll put me down to only ~160 shares.
DeleteI've put in a limit order to close out the put. I just don't want to have this money tied up for this long. If I buy it back then great, if not then I get a weekend to contemplate the matter further.
decisions...decisions... You have laid out most of the pros and cons. However, you are the one that has to be able to sleep at night so you should do what you feel is better for you personally. As you mentioned, Jan 2014 is a long time to wait and tie up $700. If I was worried about shares being called away in October and lowering my position and didn't want to buy them back then I might just buy back the Jan 2014 Put at a profit and simultaneously sell another closer dated put or enter a limit order for say a BAC Jan 2013 $9 Put at 1.00.
DeleteI'm fairly new at options too, having only started trading them last year but I'm learning a lot as I go.
I need to look into the Option world also. But I find it hard to understand. Maybe I haven't read enough. Nice portfolio.
ReplyDeleteHi JohnyCash. I really started trading a lot of options last year. With the markets going up and my strategy of selling puts, I have done well so far. I try to stick with basic options strategies, selling covered calls and selling naked puts on stocks I want to own.
DeleteI did a year-end options review that might be helpful here:
http://www.allaboutinterest.com/2013/01/2012-year-end-options-results.html
Thanks for stopping by!