With the markets recent volatility, some readers have asked that I share an update on my options activity. 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 last year:
| Date | Action | Ticker | Expiration | Strike | Call/Put | Qty | Price | Net | close Price | closeout | Days to Exp | Booked |
| 7/6/2017 | Sell | MO | 1/18/2019 | 90 | Put | 1 | $19.00 | $1,894.55 | 28.5 | -$955.45 | 221 | |
| 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 | ||||
| 3/23/2018 | Assigned | MDT | 100 | -$97.50 | -$9,755.45 | |||||||
| 3/23/2018 | Sold | MDT | 100 | $78.08 | $7,802.55 | -$833.35 | ||||||
| 3/23/2018 | Sell | MDT | 1/18/2019 | 92.5 | Put | 1 | $15.08 | $1,502.55 | 9.05 | $597.55 | 221 | |
| 7/6/2017 | Sell | JNJ | 6/15/2018 | 150 | Put | 1 | $19.50 | $1,944.55 | ||||
| 5/17/2018 | BTC | JNJ | 6/15/2018 | 150 | Put | 1 | -$25.83 | -$2,588.45 | -$643.90 | |||
| 5/17/2018 | Sell | JNJ | 1/17/2020 | 155 | Put | 1 | $31.77 | $3,171.55 | 31.77 | -$5.45 | 585 | |
| 7/20/2017 | Sell | V | 6/15/2018 | 115 | Put | 1 | $17.50 | $1,744.55 | ||||
| 2/20/2018 | BTC | V | 6/15/2018 | 115 | Put | 1 | -$2.89 | -$294.45 | $1,450.10 | |||
| 7/20/2017 | Sell | V | 1/18/2019 | 130 | Put | 1 | $31.75 | $3,169.55 | ||||
| 3/23/2018 | BTC | V | 1/18/2019 | 130 | Put | 1 | -$16.30 | -$1,635.45 | $1,534.10 | |||
| 8/10/2017 | Sell | ESV | 1/18/2019 | 15 | Put | 2 | $10.50 | $2,094.55 | ||||
| 3/3/2017 | Assigned | ESV | 4.55 | -$4.55 | ||||||||
| 8/9/2017 | Sell | Teva | 1/18/2019 | 37.5 | Put | 1 | $19.30 | $1,924.55 | ||||
| 1/18/2018 | BTC | Teva | 1/18/2019 | 37.5 | Put | 1 | -$17.00 | -$1,705.45 | $219.10 | |||
| 8/9/2017 | Sell | Teva | 1/18/2019 | 30 | Put | 1 | $12.20 | $1,214.55 | ||||
| 3/6/2018 | BTC | Teva | 1/18/2019 | 30 | Put | 1 | -$11.00 | -$1,105.45 | $109.10 | |||
| 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 | 25.62 | -$1,337.45 | 221 | |
| 10/19/2017 | Sell | GIS | 1/18/2019 | 67.5 | Put | 1 | $16.90 | $1,684.55 | 25.62 | -$877.45 | 221 | |
| 8/2/2017 | Sell | MO | 9/21/2018 | 80 | Put | 1 | $17.50 | $1,744.55 | 22.65 | -$520.45 | 102 | |
| 9/7/2017 | Sell | MO | 1/18/2019 | 90 | Put | 1 | $28.50 | $2,844.55 | 28.5 | -$5.45 | 221 | |
| 10/17/2017 | Sell | V | 12/20/2019 | 160 | Put | 1 | $52.52 | $5,246.55 | 27.6 | $2,486.55 | 557 | |
| 10/25/2017 | Sell | T | 9/21/2018 | 40 | Put | 2 | $7.30 | $1,454.55 | 7.03 | $48.55 | 102 | |
| 10/26/2017 | Sell | BBL | 6/15/2018 | 35 | Put | 1 | $2.55 | $249.55 | ||||
| 2/28/2018 | BTC | BBL | 6/15/2018 | 35 | Put | 1 | -$0.66 | -$71.45 | $178.10 | |||
| 10/30/2017 | Sell | CVS | 1/19/2018 | 80 | Put | 1 | $11.90 | $1,184.55 | ||||
| 1/8/2018 | BTC | CVS | 1/19/2018 | 80 | Put | 1 | -$2.40 | -$245.45 | $939.10 | |||
| 12/11/2017 | Sell | CVS | 1/18/2019 | 77.5 | Put | 1 | $10.42 | $1,036.55 | 11.65 | -$128.45 | 221 | |
| 1/8/2018 | Sell | CVS | 5/18/2018 | 82.5 | Put | 1 | $7.30 | $724.55 | ||||
| 3/9/2018 | BTC | CVS | 5/18/2018 | 82.5 | Put | 1 | -$14.24 | -$1,429.45 | -$704.90 | |||
| 3/9/2018 | Sell | CVS | 8/17/2018 | 75 | Put | 2 | $8.55 | $1,704.55 | ||||
| 6/4/2018 | BTC | CVS | 8/17/2018 | 75 | Put | 2 | -$11.66 | -$2,337.45 | -$632.90 | |||
| 6/4/2018 | Sell | CVS | 1/18/2019 | 75 | Put | 2 | $12.36 | $2,466.55 | 12.36 | -$5.45 | 221 | |
| 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 | 1.75 | $119.55 | 221 | |
| 11/14/2017 | Sell | WMT | 3/16/2018 | 100 | Put | 1 | $10.85 | $1,079.55 | ||||
| 02/20/18 | BTC | WMT | 3/16/2018 | 100 | Put | 1 | -$5.97 | -$602.45 | $477.10 | |||
| 12/01/17 | Sell | BDX | 3/16/2018 | 230 | Put | 1 | $10.93 | $1,087.55 | ||||
| 01/30/18 | BTC | BDX | 3/16/2018 | 230 | Put | 1 | -$3.00 | -$305.45 | $782.10 | |||
| 12/01/17 | Sell | Teva | 1/18/2019 | 32.5 | Put | 3 | $17.20 | $5,154.55 | ||||
| 3/6/18 | BTC | Teva | 1/18/2019 | 32.5 | Put | 3 | -$12.33 | -$3,704.45 | $1,450.10 | |||
| 12/11/17 | Sell | RDSB | 7/20/2018 | 60 | Call | 1 | $6.34 | $628.55 | ||||
| 3/14/18 | BTC | RDSB | 7/20/2018 | 60 | Call | 1 | -$4.73 | -$478.45 | $150.10 | |||
| 12/15/17 | Sell | PG | 9/21/2018 | 92.5 | Put | 1 | $5.20 | $514.55 | 15 | -$985.45 | 102 | |
| 12/15/17 | Sell | GE | 9/21/2018 | 18 | Put | 3 | $1.64 | $486.55 | 4.15 | -$758.45 | 102 | |
| 12/15/17 | Sell | CHD | 7/20/2018 | 50 | Call | 1 | $2.78 | $272.55 | ||||
| 2/14/18 | BTC | CHD | 7/20/2018 | 50 | Call | 1 | -$2.45 | -$250.45 | $22.10 | |||
| 12/28/17 | Sell | SO | 8/17/2018 | 48 | Put | 1 | $2.75 | $269.55 | ||||
| 06/01/18 | BTC | SO | 8/17/2018 | 48 | Put | 1 | -$3.98 | -$403.45 | -$133.90 | |||
| 06/01/18 | Sell | SO | 1/18/2019 | 48 | Put | 1 | $4.62 | $456.55 | 5.65 | -$108.45 | 221 | |
| 12/28/17 | Sell | SO | 1/18/2019 | 50 | Put | 1 | $4.75 | $469.55 | ||||
| 03/23/18 | BTC | SO | 1/18/2019 | 50 | Put | 1 | -$7.65 | -$770.45 | -$300.90 | |||
| 01/08/18 | Sell | WSM | 8/17/2018 | 57.5 | Put | 1 | $7.70 | $764.55 | ||||
| 03/15/18 | BTC | WSM | 8/17/2018 | 57.5 | Put | 1 | -$6.10 | -$615.45 | $149.10 | |||
| 01/18/18 | Sell | BGS | 8/17/2018 | 30 | Put | 1 | $2.50 | $244.55 | ||||
| 5/8/18 | BTC | BGS | 8/17/2018 | 30 | Put | 1 | -$5.32 | -$537.45 | -$292.90 | |||
| 5/8/18 | Sell | BGS | 11/16/2018 | 30 | Put | 1 | $6.11 | $605.55 | 3.86 | $219.55 | 158 | |
| 1/18/18 | Sell | BGS | 8/17/2018 | 35 | Call | 1 | $1.82 | $176.55 | ||||
| 2/14 | BTC | BGS | 8/17/2018 | 35 | Call | 1 | -$1.60 | -$165.45 | $11.10 | |||
| 1/19 | Sell | IBM | 9/21/2018 | 170 | Put | 1 | $15.65 | $1,559.55 | ||||
| 5/31/18 | BTC | IBM | 9/21/2018 | 170 | Put | 1 | -$29.07 | -$2,912.45 | -$1,352.90 | |||
| 5/31/18 | Sell | IBM | 1/17/2020 | 165 | Put | 1 | $30.27 | $3,021.55 | 29 | $121.55 | 585 | |
| 1/23/18 | Sell | OHI | 1/18/2019 | 30 | Call | 5 | $0.70 | $344.55 | 1.8 | -$555.45 | 221 | |
| 01/23/18 | Sell | T | 1/18/2019 | 40 | Call | 2 | $1.50 | $294.55 | ||||
| 02/28/18 | BTC | T | 1/18/2019 | 40 | Call | 2 | -$1.33 | -$271.45 | $23.10 | |||
| 02/01/18 | Sell | OMI | 9/21/2018 | 17.5 | Put | 5 | $2.20 | $1,094.55 | ||||
| 05/24/18 | Sell | OMI | 9/21/2018 | 17.5 | Put | 5 | -$2.21 | -$1,110.45 | -$15.90 | |||
| 02/13/18 | Sell | IBM | 9/21/2018 | 150 | Put | 1 | $10.26 | $1,020.55 | ||||
| 03/20/18 | BTC | IBM | 9/21/2018 | 150 | Put | 1 | -$7.30 | -$735.45 | $285.10 | |||
| 02/14/18 | Sell | OHI | 1/18/2019 | 25 | Put | 4 | $2.75 | $1,094.55 | ||||
| 05/08/18 | BTC | OHI | 1/18/2019 | 25 | Put | 4 | -$1.50 | -$605.45 | $489.10 | |||
| 02/16/18 | Sell | MO | 1/18/2019 | 85 | Put | 1 | $20.66 | $2,060.55 | 28.24 | -$763.45 | 221 | |
| 02/20/18 | Sell | SLB | 9/21/2018 | 72.5 | Put | 1 | $9.09 | $903.55 | ||||
| 03/14/18 | BTC | SLB | 9/21/2018 | 72.5 | Put | 1 | -$7.90 | -$795.45 | $108.10 | |||
| 02/20/18 | Sell | CVS | 8/17/2018 | 80 | Put | 1 | $10.57 | $1,051.55 | ||||
| 06/14/18 | BTC | CVS | 8/17/2018 | 80 | Put | 1 | -$16.26 | -$1,631.45 | -$579.90 | |||
| 06/14/18 | Sell | CVS | 1/17/2020 | 80 | Put | 1 | $18.29 | $1,823.55 | 15.95 | $228.55 | 585 | |
| 03/05/18 | Sell | HSY | 8/17/2018 | 105 | Put | 1 | $8.42 | $836.55 | ||||
| 06/01/18 | Assigned | HSY | 100 | -$105.00 | -$10,505.45 | |||||||
| 06/01/18 | Sold | HSY | 100 | $89.50 | $8,944.55 | -$724.35 | ||||||
| 03/05/18 | Sell | ESV | 1/18/2019 | 10 | Put | 2 | $5.40 | $1,074.55 | ||||
| 03/14/18 | BTC | ESV | 1/18/2019 | 10 | Put | 2 | -$5.29 | -$1,063.45 | $11.10 | |||
| 03/06/18 | Sell | V | 1/17/2020 | 165 | Put | 1 | $43.00 | $4,294.55 | 35.2 | $774.55 | 585 | |
| 03/07/18 | Sell | XOM | 6/21/2019 | 80 | Put | 1 | $10.96 | $1,090.55 | ||||
| 05/18/18 | Sell | XOM | 6/21/2019 | 80 | Put | 1 | -$5.95 | -$600.45 | $490.10 | |||
| 03/08/18 | Sell | MO | 1/18/2019 | 75 | Put | 1 | $12.73 | $1,267.55 | 20.05 | -$737.45 | 221 | |
| 03/14/18 | Sell | PG | 10/19/2018 | 95 | Put | 1 | $16.38 | $1,632.55 | 18.66 | -$233.45 | 130 | |
| 03/15/18 | Sell | KHC | 1/18/2019 | 70 | Put | 1 | $7.70 | $764.55 | 12.7 | -$505.45 | 221 | |
| 03/23/18 | Sell | MO | 1/18/2019 | 70 | Put | 1 | $12.02 | $1,196.55 | 14 | -$203.45 | 221 | |
| 03/23/18 | Sell | DIS | 1/17/2020 | 120 | Put | 1 | $22.62 | $2,256.55 | 19.5 | $306.55 | 585 | |
| 03/29/18 | Sell | WBA | 1/17/2020 | 80 | Put | 1 | $15.05 | $1,499.55 | 18.3 | -$330.45 | 585 | |
| 04/19/18 | Sell | PM | 1/18/2019 | 100 | Put | 1 | $14.78 | $1,472.55 | 21.95 | -$722.45 | 221 | |
| 04/19/18 | Sell | MO | 1/17/2020 | 75 | Put | 1 | $18.81 | $1,875.55 | 21.4 | -$264.45 | 585 | |
| 04/19/18 | Sell | HBI | 1/17/2020 | 20 | Put | 3 | $4.30 | $1,284.55 | 2.75 | $459.55 | 585 | |
| 04/25/18 | Sell | KO | 1/18/2019 | 42 | Put | 2 | $2.31 | $456.55 | 1.36 | $184.55 | 221 | |
| 04/30/18 | Sell | T | 10/19/2018 | 33 | Put | 1 | $2.06 | $200.55 | 1.36 | $64.55 | 130 | |
| 05/03/18 | Sell | HSY | 11/16/2018 | 100 | Put | 1 | $11.68 | $1,162.55 | 9.68 | $194.55 | 158 | |
| 05/07/18 | Sell | V | 6/21/2019 | 145 | Put | 1 | $19.30 | $1,924.55 | 14.85 | $439.55 | 375 | |
| 05/07/18 | Sell | MO | 6/21/2019 | 70 | Put | 1 | $16.55 | $1,649.55 | 14.65 | $184.55 | 375 | |
| 05/08/18 | Sell | GIS | 1/18/2019 | 67.5 | Put | 1 | $25.62 | $2,556.55 | 24 | $156.55 | 221 | |
| 05/08/18 | Sell | CVS | 1/17/2020 | 75 | Put | 1 | $15.65 | $1,559.55 | 13.65 | $194.55 | 585 | |
| 05/14/18 | Sell | RDSB | 1/18/2019 | 75 | Call | 1 | $4.00 | $394.55 | 2.9 | $104.55 | 221 | |
| 05/22/18 | Sell | PG | 6/21/2019 | 82.5 | Put | 1 | $10.30 | $1,024.55 | 8.25 | $199.55 | 375 | |
| 05/29/18 | Sell | T | 6/21/2019 | 35 | Put | 2 | $4.92 | $978.55 | 3.5 | $278.55 | 375 | |
| TOTALS | $70,212.60 | -$2,640.00 | $4,782.50 |
The last update on trades had generated $55,334 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 as equity to cover. This update shows I’ve now generated $70,212 in revenues. Most of this money has already been used to purchase more dividend paying stocks. The closeout column is what each call/put will cost to close out today. Basically if I close out every single open position I’d lose $2,640. This is an unrealized gain/loss.
I’ve already booked profits of $4,782.50, down from $7,781.50 on closed trades. The reason this is down is because I “rolled” forward some options position. What this means is I had an expiration date getting close and the option was still in the money so I bought back the previous option I sold and sold a new option with a longer dated expiration.
Here’s an example of a recent roll forward:
On 03/09/18 I sold 2 08/17/18 dated $75 Strike CVS Puts for $8.55 each, creating net revenue of $1,704.55.
On 06/04/18 I decided to buy back that same Put for $11.66 each, costing me $2,337.45 for a total net loss of $632.90.
I simultaneously sold a new Put on 06/04/18 for CVS with a $75 Strike expiring on 01/18/19 for $12.36 each, creating net revenues of $2,466.55. So I show a realized loss of $632.90 but I’ve generated revenues of $2,466.55-$632.90 = $1833.65. Notice this is more total revenue than the original trade. I was basically paid $.70 ($12.36-$11.66) x 200 (keep in mind each put/call is 100 shares) = $140 to push out the expiration date. I hope that makes sense.
My net profits if I closed out all trades today would be $4,782.50 – $2,640.00 = $2,142.50.
Note: These profits won’t include dividends or capital gains which I do receive from investing in other dividend paying stocks with the revenue.
I’ve been very active trading options, I currently have open around 40 options positions. V is still responsible for a lot of my gains. I have to say, I didn’t expect that I’d be doing this well (if you can say that) at this point and it’s making me want to check out more of these Apps für Trader to see what other markets I might be able to get stuck into so my money can increase further. But we’ll have to see how I get on with my current endeavors first.
I’ve sold a lot of puts on consumer goods companies which have been hammered. Considering this, I think I’m doing well to be in the black. As this space continues to recover, I’ll be sitting pretty well, a lot of these gains may not be realized until next year. However, I’ve gotten a lot of revenue that I’ve already put to work in the market in the meantime.
My V puts continue to be rock solid. In fact, I used some of these profits to buy additional shares of V in this account more than once. My MO puts are killing me! I do expect MO/PM to recover, I don’t know how long that will take but I’m willing to wait it out. I can always roll forward the puts if necessary.
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 (strike – 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 just broke the $12,000 forward dividends goal around March and I’m already getting near $16,000 in forward dividends. The extra options income is certainly helping speed up the process. My forward dividends are currently $15,692. Just for reference, my forward income was $12,015 on 02/27/18. I’ve already surpassed my goal for the year so I’m now shooting for $18,000 in forward dividends by year’s end. I’ll need to put to work $61,546 at a 3.75% yield to do this.
Best long ideas currently are V, BRK.B, MO, PM, CVS, DIS, SBUX to name a few. I’ll be adding more to these companies throughout the year at these prices.
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