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Update on Options Activity

October 23, 2017 by All About Interest Leave a Comment

Below are the actual trades:

Date Action Ticker Expiration Strike Call/Put Qty Price Net close Price closeout
7/6/2017 Sell MO 1/18/2019 90 Put 1 $19.00 $1,894.55 28.5 -$955.45
7/6/2017 Sell MO 9/21/2018 75 Call 1 $5.15 $509.55 2.12 $297.55
8/11/2017 BTC MO 9/21/2018 75 Call 1 -$2.12 -$217.45
7/6/2017 Sell BDX 1/19/2018 210 Put 1 $18.00 $1,794.55 4.9 $1,304.55
7/6/2017 Sell MDT 6/15/2018 97.5 Put 1 $11.25 $1,119.55 11.25 -$5.45
7/6/2017 Sell JNJ 6/15/2018 150 Put 1 $19.50 $1,944.55 10.2 $924.55
7/20/2017 Sell V 6/15/2018 115 Put 1 $17.50 $1,744.55 10.5 $694.55
7/20/2017 Sell V 1/18/2019 130 Put 1 $31.75 $3,169.55 23.64 $805.55
8/10/2017 Sell ESV 1/18/2019 15 Put 1 $10.50 $1,044.55 9.81 $63.55
8/9/2017 Sell Teva 1/18/2019 37.5 Put 1 $19.30 $1,924.55 20 -$75.45
8/9/2017 Sell Teva 1/18/2019 30 Put 1 $12.20 $1,214.55 15.42 -$327.45
8/10/2017 Bought Teva 9/1/2017 17 Call 2 -$1.28 -$261.45 -$261.45
8/10/2017 Bought Teva 9/15/2017 17.5 Call 5 -$1.37 -$690.45
9/12/2017 STC Teva 9/15/2017 17.5 Call 5 $2.29 $1,139.55 2.29 $449.10
8/8/2017 Sell GIS 1/18/2019 67.5 Put 1 $12.30 $1,224.55 16.19 -$394.45
8/2/2017 Sell MO 9/21/2018 80 Put 1 $17.50 $1,744.55 17.25 $19.55
9/7/2017 Sell MO 1/18/2019 90 Put 1 $18.50 $1,844.55 28.5 -$1,005.45
10/17/2017 Sell V 12/20/2019 160 Put 1 $52.52 $5,246.55 52.8 -$33.45
TOTALS $26,390.90 $1,500.35

The last update on trades had generated $7262 in revenues. I’m approved for “naked” options trading meaning I can sell puts on companies I don’t own and without having the cash to purchase said security. This update shows I’ve generated $26,390 in revenues.  The closeout column is what my total profit will look like if I closed out all trades today.

Note:  These profits won’t include dividends which I do receive from investing in other dividend paying stocks with the revenue.

My BDX put is killing it, I could close out with nearly a $1300 profit in a short amount of time!  The MO puts are killing me though.  However, I like Altria for the long-term and if I get assigned shares I’ll be ok with it.  I had a couple of speculative calls expire with Teva for a loss of $261.45.  However, I earned $449.10 on another 5 calls I bought and then sold on 09/12.  Teva remains a large speculative position for me.  I don’t see them going bankrupt but I do see shares under pressure until the new CEO can get things going again.

My V puts continue to do well.  V is a wonderful company and I believe shares will continue to beat the market for a while.  This is why I’ve sold 3 large deep in the money puts for a nice revenue stream.  The first two puts would profit about $1500 if I closed them out today.

So what happens in the case that one of these companies is lower near expiration? Well, I have a few options.

a. I can do nothing and I’ll be required to purchase 100 shares of said security at the strike price. It’s sort of like I’m buying the company right now at a discount.

b. I can decide to purchase back the put for more money at a loss of approximately ($71/share – current share value) x 100.

c. Third option is to “roll” the put forward. What this means is that I simultaneously purchase the put back and sell another longer dated put so that I haven’t lost any money.

Well the good news is that I’m in the positive on these trades.  This is in my speculative account but I still target mainly dividend paying companies that I want to own or already own anyways.  Any profits will go directly into purchasing more shares of solid dividend-paying companies.

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I'm a 39-year-old dividend growth investor, wanna be real estate mogul, entrepreneur and dad. Follow me on my journey to financial independence!
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