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Options Update – August 2018

August 6, 2018 by All About Interest Leave a Comment

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 33.2 -$1,425.45 170
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 5.6 $942.55 170
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 26.35 $536.55 534
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 -$1,337.45 170
10/19/2017 Sell GIS 1/18/2019 67.5 Put 1 $16.90 $1,684.55 25.62 -$877.45 170
8/2/2017 Sell MO 9/21/2018 80 Put 1 $17.50 $1,744.55
7/27/2018 BTC MO 9/21/2018 80 Put 1 -$22.87 -$2,292.45 -$547.90
7/27/2018 Sell MO 6/21/2019 75 Put 2 $18.88 $3,770.55 17.5 $270.55 324
9/7/2017 Sell MO 1/18/2019 90 Put 1 $28.50 $2,844.55 33.2 -$475.45 170
10/17/2017 Sell V 12/20/2019 160 Put 1 $52.52 $5,246.55 25 $2,746.55 506
10/25/2017 Sell T 9/21/2018 40 Put 2 $7.30 $1,454.55
6/27/2018 BTC T 9/21/2018 40 Put 2 -$8.62 -$1,729.45 -$274.90
06/27/18 Sell T 6/21/2019 37 Put 3 $6.58 $1,968.55 6 $168.55 324
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 11.1 -$73.45 170
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
6/18/2018 BTC CVS 1/18/2019 75 Put 2 -$9.58 -$1,921.45 $545.10
6/18/2018 Sell CVS 1/17/2020 75 Put 2 $12.39 $2,472.55 13.55 -$237.45 534
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
6/14/2018 BTC HBI 1/18/2019 20 Put 1 -$1.65 -$170.45 $124.10
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
6/18/18 BTC PG 9/21/2018 92.5 Put 1 -$17.25 -$1,730.45 -$1,215.90
6/18/18 Sell PG 6/21/2019 90 Put 2 $15.40 $3,074.55 10.85 $904.55 324
12/15/17 Sell GE 9/21/2018 18 Put 3 $1.64 $486.55
6/19/18 BTC GE 9/21/2018 18 Put 3 -$5.04 -$1,517.45 -$1,030.90
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 2.34 $222.55 170
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
6/14/18 BTC BGS 11/16/2018 30 Put 1 -$3.30 -$335.45 $270.10
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 26.45 $376.55 534
1/23/18 Sell OHI 1/18/2019 30 Call 5 $0.70 $344.55 1.3 -$305.45 170
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
07/06/18 BTC MO 1/18/2019 85 Put 1 -$27.26 -$2,731.45 -$670.90
07/06/18 Sell MO 6/21/2019 75 Put 2 $18.40 $3,674.55 17.5 $174.55 324
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 16.9 $133.55 534
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 28.3 $1,464.55 534
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 $12.84 $1,278.55 17.2 -$441.45 170
03/14/18 Sell PG 10/19/2018 95 Put 1 $16.38 $1,632.55 15.38 $94.55 79
03/15/18 Sell KHC 1/18/2019 70 Put 1 $7.70 $764.55 10.7 -$305.45 170
03/23/18 Sell MO 1/18/2019 70 Put 1 $12.02 $1,196.55 12.55 -$58.45 170
03/23/18 Sell DIS 1/17/2020 120 Put 1 $22.62 $2,256.55 12.9 $966.55 534
03/29/18 Sell WBA 1/17/2020 80 Put 1 $15.05 $1,499.55 18.3 -$330.45 534
04/19/18 Sell PM 1/18/2019 100 Put 1 $14.78 $1,472.55 15.05 -$32.45 170
04/19/18 Sell MO 1/17/2020 75 Put 1 $18.81 $1,875.55 18.81 -$5.45 534
04/19/18 Sell HBI 1/17/2020 20 Put 3 $4.30 $1,284.55 2.36 $576.55 534
04/25/18 Sell KO 1/18/2019 42 Put 2 $2.31 $456.55 0.52 $352.55 170
04/30/18 Sell T 10/19/2018 33 Put 1 $2.06 $200.55 1.7 $30.55 79
05/03/18 Sell HSY 11/16/2018 100 Put 1 $11.68 $1,162.55 5.35 $627.55 107
05/07/18 Sell V 6/21/2019 145 Put 1 $19.30 $1,924.55 14.35 $489.55 324
06/01/18 Sell V 6/21/2019 145 Put 1 $16.49 $1,643.55 14.35 $208.55 324
06/19/18 Sell V 6/21/2019 145 Put 1 $15.20 $1,514.55 14.35 $79.55 324
05/07/18 Sell MO 6/21/2019 70 Put 1 $16.55 $1,649.55 14.25 $224.55 324
05/08/18 Sell GIS 1/18/2019 67.5 Put 1 $25.62 $2,556.55 25.62 -$5.45 170
05/08/18 Sell CVS 1/17/2020 75 Put 1 $15.65 $1,559.55 13.55 $204.55 534
05/14/18 Sell RDSB 1/18/2019 75 Call 1 $4.00 $394.55
06/15/18 BTC RDSB 1/18/2019 75 Call 1 -$1.85 -$190.45 $204.10
07/11/18 Sell RDSB 1/18/2019 77.5 Put 1 $2.05 $199.55 0.8 $119.55 170
05/22/18 Sell PG 6/21/2019 82.5 Put 1 $10.30 $1,024.55 6.1 $414.55 324
05/29/18 Sell T 6/21/2019 35 Put 2 $4.92 $978.55 4.5 $78.55 324
06/15/18 Sell KIM 7/20/2018 15 Call 2 $1.59 $312.55
06/25/18 BTC KIM 7/20/2018 15 Call 2 -$2.73 -$551.45 -$238.90
06/25/18 Sell KIM 1/18/2019 15 Call 2 $2.78 $550.55 1.95 $160.55 170
10/25/17 Sell T 9/21/2018 40 Put 2 $7.30 $1,454.55
06/27/18 BTC T 9/21/2018 40 Put 2 -$8.62 -$1,729.45 -$274.90
06/14/18 Sell ABBV 6/21/2019 110 Put 1 $18.09 $1,803.55 19.05 -$101.45 324
06/28/18 Sell CAH 1/18/2019 50 Put 1 $4.70 $464.55 4.5 $14.55 170
07/26/18 Sell MO 1/17/2020 75 Put 1 $20.30 $2,024.55 18.75 $149.55 534
TOTALS $80,252.35 $6,720.65 $1,671.60

Income/Profits:

The last update on trades had generated $70,212 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 $80,252 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 gain $6,720.65.  This compares to my last options update of a loss of $2,640.  This is an unrealized gain/loss.

I’ve already booked profits of $1,671.60, down from $4,782.50 on closed trades.  The reason this is down is because I “rolled” forward several more 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.  I plan to keep all my winning puts going and roll forward any losing puts to offset some of my capital gains this year.  You’ll see me do this with several MO puts later in the year that are in the red.

My net profits if I closed out all trades today would be $1,671.60 + $6,720.65 = $8,392.25 up from $2,142.50 in the last update.

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

Recent Trades:

I rolled forward my Sept 21 ’18 MO $80 put by buying it back for $2287 and simultaneously selling 2 June 21 ’19 $75 MO puts for $1888 each.
Revenue of $1489.

I sold 1 Jan 17 ’20 $75 MO Put for $2030.
Revenue of $2030.

I sold 1 Jan 18 ’19 $77.50 RDSB Call for $205
Revenue of $205.

I rolled forward my Jan 18 ’19 MO $85 put by buying it back for $2726 and simultaneously selling 2 June 21 ’19 MO puts for $1814 each.
Revenue of $902.

I sold 1 Jan 18 ’19 $50 CAH Put for $478
Revenue of $478

What to do if a trade isn’t working out:

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.

Example of a 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.

Looking ahead

I’ve slowed down the pace but still been very active with options, I currently have open around 40 options positions.

Consumer goods companies have started to come back which has helped some of my options.  The markets are on a tear so I’ll continue with my strategy as it keeps working out.  I’ve received a LOT of revenue that I’ve already put to work in the market in the meantime.

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 recently broke the $16,000 level in forward dividends.  The extra options income is certainly helping speed up the process.  My forward dividends are currently $16,236.  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 $47,040 at a 3.75% yield to do this not including any dividend raises.

Best long ideas currently are V, SQ, PYPL, BRK.B, MO, PM, CVS, DEO, DIS, FOXA, MDT, SBUX to name a few.  I’ll be adding more to these companies throughout the year at these prices.

 

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I'm a 39-year-old dividend growth investor, wanna be real estate mogul, entrepreneur and dad. Follow me on my journey to financial independence!
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