Options Update – December 2017

Well, the markets are on a tear.  This has helped my puts become more profitable.  I continue selling puts against companies I want to own more of and using proceeds to purchase more shares of these companies.

Below are all my trades since July of this year:

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	20.25	-$130.45
7/6/2017	Sell	MO	9/21/2018	75	Call	1	$5.15	$509.55
8/11/2017	BTC	MO	9/21/2018	75	Call	1	-$2.12	-$217.45		$292.10
7/6/2017	Sell	BDX	1/19/2018	210	Put	1	$18.00	$1,794.55
12/1/2017	BTC	BDX	1/19/2018	210	Put	1	-$1.38	-$143.45		$1,651.10
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	10.6	$884.55
7/20/2017	Sell	V	6/15/2018	115	Put	1	$17.50	$1,744.55	6.8	$1,064.55
7/20/2017	Sell	V	1/18/2019	130	Put	1	$31.75	$3,169.55	19.25	$1,244.55
8/10/2017	Sell	ESV	1/18/2019	15	Put	2	$10.50	$2,094.55	9.81	$132.55
8/9/2017	Sell	Teva	1/18/2019	37.5	Put	1	$19.30	$1,924.55	19	$24.55
8/9/2017	Sell	Teva	1/18/2019	30	Put	1	$12.20	$1,214.55	11.8	$34.55
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	11.5	$74.55
10/19/2017	Sell	GIS	1/18/2019	67.5	Put	1	$16.90	$1,684.55	11.5	$534.55
8/2/2017	Sell	MO	9/21/2018	80	Put	1	$17.50	$1,744.55	10.6	$684.55
9/7/2017	Sell	MO	1/18/2019	90	Put	1	$28.50	$2,844.55	20.1	$834.55
10/17/2017	Sell	V	12/20/2019	160	Put	1	$52.52	$5,246.55	48.95	$351.55
10/25/2017	Sell	T	9/21/2018	40	Put	2	$7.30	$1,454.55	4.45	$564.55
10/26/2017	Sell	BBL	6/15/2018	35	Put	1	$2.55	$249.55	1.55	$94.55
10/30/2017	Sell	CVS	1/19/2018	80	Put	1	$11.90	$1,184.55	8.85	$299.55
12/11/2017	Sell	CVS	1/18/2019	77.5	Put	1	$10.42	$1,036.55	10.9	-$53.45
10/31/2017	Sell	OHI	6/15/2018	29	Put	1	$2.50	$244.55
12/18/2017	BTC	OHI	6/15/2018	29	Put	1	-$2.45	-$250.45		-$5.90
11/13/2017	Sell	HBI	1/18/2019	20	Put	1	$3.00	$294.55	2.1	$84.55
11/14/2017	Sell	WMT	3/16/2018	100	Put	1	$10.85	$1,079.55	4.95	$584.55
12/01/17	Sell	BDX	3/16/2018	230	Put	1	$10.93	$1,087.55	12.5	-$162.45
12/01/17	Sell	Teva	1/18/2019	32.5	Put	3	$17.20	$5,154.55	14.35	$849.55
12/11/17	Sell	RDSB	7/20/2018	60	Call	1	$6.34	$628.55	6.34	-$5.45
12/15/17	Sell	PG	9/21/2018	92.5	Put	1	$5.20	$514.55	5.2	-$5.45
12/15/17	Sell	GE	9/21/2018	18	Put	3	$1.64	$486.55	1.6	$6.55
12/15/17	Sell	CHD	7/20/2018	50	Call	1	$2.78	$272.55	2.85	-$12.45
TOTALS								$43,419.70		$10,098.70

The last update on trades had generated $26,390 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. My collateral is owning shares of companies to cover.  This update shows I’ve now generated $43,419.70 in revenues. The closeout column is what my total profit will look like if I closed out all trades today.  It’s up to over $10,000 from about $1,500 in the last update.  The difference in the revenues and profits is what it would cost me to close out all the trades, about $33,000.

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

On 12/01, I closed out my BDX put for a profit of $1651.10.  I think this is my single best put option to date.  My MO puts are starting to look better than the last update.  I still like Altria for the long-term and if I get assigned shares I’ll be ok with it. Teva shares are way up from the bottom and my puts are looking better also.

My V puts continue to rock & roll! 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. I’d profit over $2500 from V if I closed the 3 puts I have outstanding.  This is up from about $1500 in my last update.

So what happens in the case that one of these companies is lower near expiration (in the money)? 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.

Any profits will go directly into purchasing more shares of solid dividend-paying companies.

This is just another avenue I’m using to earn additional profits so that I can get this dividend snowball moving faster.  I’m still targeting my next goal of $12,000 ($1,000 a month) in forward dividends by March of 2018.  My forward dividends are currently  $10,826.  I’ll need to put to work about $39,000 at a 3% yield in the next few months.  With tax season coming up this might post a challenge but I love challenges.  Wish me luck!