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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