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!
Selling those ITM puts are definitely working out nice with the markets continued move higher. I’m really enjoying using options within my Rollover IRA, sadly it’s not a margin account, but it still works just fine. Plus that extra premium coming in each month really helps out. Insurance can be a profitable business!
Hi JC,
Yes, ITM puts are awesome when the market keeps going up. I could get caught with my pants down if the market had a huge correction so that’s the main risk. However, that’s the reason I’m only selling puts on companies I want to own more of anyways in case I let them get assigned.
I’m glad your puts are working well for you in the Roth IRA. All of these trades are in a taxable account which sucks at tax time.
Thanks for stopping by!
Wow nice profit in such a short time! Good luck hitting $39k in a few months!
FiscalVoyage recently posted…Passive Income for December 2017
FV,
Thanks, as long as the markets continue going up I’m going to do very well with these puts. I think I’m already profiting over 15k at this point, 50% more than just a few weeks ago. The markets have been on a tear though.
Thanks for dropping by!