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’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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