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.