One man's journey to financial independence.
I bought to close my DOW Sept 22nd $30 Put this morning. I did this mainly for two reasons. First, I believe there will be a better entry point for DOW. I also wanted to free up a little bit of cash for an IRS quarterly payment and a trip I have planned next month to Europe.
It costs me .74 to close and I bought at 1.14 so I profited only $40 minus brokerage fees. This brings my yearly profit to $2105. I will update this on my options tab.
My COP put expired worthless and pushed my total premiums for the year over $2000 to $2065!
On May 9th I sold 1 COP AUG 18 ’12 Put @ 1.96. That Put expired worthless today so I ended up collecting the whole $196 premium. You can see the original post here.
Most of the puts I sell are companies I want to own or want to own more of anyways. I would have had no problem buying another 100 shares of COP at $50/share. I didn’t get that chance since the shares rallied back over $57/share where they are now. However, I was paid a nice premium to wait.
I have updated this transaction on my options tab.
I decided to close out my 4 Oct 20 ’12 BBVA Puts @ .30 this morning. I could have closed at .25 yesterday saving $20 but was hoping for another up day. With BBVA down 8% today I decided to close out with a small gain of $40 not counting commissions and look for a better entry point.
I believe the market is due for a correction and the banks have been falling more heavily when the rest of the market drops. I still believe the 2nd largest bank in Spain with a lot of geographic diversification will survive the Spain and Euro debt crisis and could be a great long-term investment. I’m willing to build up to a 1000 share position but I want to keep averaging in. I’ve updated this trade on my options tab as well.
I decided to close out my 2 puts in WAG this morning. They don’t expire until October and I was able to lock in a decent profit. I bought to close 2 WAG Oct 20 ’12 $28 Puts @ .25. I made $190 profit not including fees and have updated this on the options tab.
Another way to look at this is that it lowered my purchase price of the 68 shares of WAG I bought on the same day. You can find the post here. I purchased 68 shares @ 28.99 but with the $190 profit I made on the puts it’s as if I purchased those shares at 26.20/share not including commissions.
Johnson Controls (JCI) was down 8% after reporting it’s quarterly report this morning. I think this was a little overdone. So I decided to sell an Oct 20 ’12 $25 Put @ 1.20. If this gets assigned I’ll own JCI with a YOC of just over 3%. From a quick look, it seems that JCI has increased its dividend every year since 1998 besides during the great recession of 2009. I really wouldn’t mind owning the stock but if I get a good opportunity to buy back the put at a profit then I may do so.
From Etrade:
Johnson Controls, Inc. (Johnson Controls) provides automotive interiors. It provides batteries for automobiles and hybrid electric vehicles, along with related systems engineering, marketing and service expertise. Its building efficiency business designs, produces, markets and installs integrated heating, ventilating and air conditioning systems, building management systems, controls, security and mechanical equipment. In addition, the building efficiency business provides technical services, energy management consulting and operations of entire real estate portfolios. In May 2011, it sold its commercial refrigeration to YIT Oyj. In September 2011, it acquired Li-ion automotive battery joint venture from Saft Groupe SA. On March 26, 2012, Pricol Pune Limited became a 50:50 joint venture company of Pricol Limited and the Company. In April 2012, Emerson Electric Co acquired the Marine Container and Boiler business of the Company.
You can see all of my options activity on my options tab.
PG is up big today on a general down day in the markets. I used this opportunity to close out my July 21 ’12 put. I bought back the July 21 ’12 $62.50 put at $.83 earning a meager $59 not counting commission costs. I’m also already heavy in the consumer sector and decided this is my chance to close out the trade so I am not assigned 100 shares of PG which would have automatically become my largest holding.
I will probably hold off on selling any puts until after the 21st when I expect to be assigned 300 shares of BBVA (my speculative dividend play) and to have my VOD puts expire.
You can check out my options activity on the options tab.
I had a limit order on a put that executed Friday with DOW. I sold 1 Sept 22 $30 Put @ 1.14.
You can check out my options activity on the options tab.
I purchased 68 shares this morning @ 28.99 / share and a YOC of 3.8% before commissions. I also sold 2 Oct 20 ’12 $28 Puts @ 1.20/share. If the puts get assigned in Oct. I will own 268 shares of WAG at an average cost of 27.36 with a total YOC of 4.02% before commissions. I realized that with a lot of puts I have sold, I would have been better off buying the company so I decided to do both today. If WAG’s price rallies I don’t want to miss the opportunity to own some at a good price. Walgreens is a dividend champion and has raised dividends for 36 straight years.
I have been watching Walgreen’s (WAG) for a while and decided to pull the trigger today on weakness. The stock has dropped about 10% since it announced it is buying a 45% stake in Alliance Boots for 6.7 Billion (4B in cash plus 83.4M shares). I’m guessing this drop was due to dilluting the outstanding shares by about 10% (they have about 850M outstanding shares by my calculations). WAG also increased the dividend 22.2% to 27.5 cents per share yesterday.
I had planned on holding off on any new purchases until July but I missed out on some deals a few weeks ago and I can’t let this great deal slip away.
This is from their website:
DEERFIELD, Ill., June 19, 2012 – The board of directors of Walgreen Co. (NYSE:WAG) (NASDAQ:WAG) today announced an increase in the quarterly dividend of 22.2 percent to 27.5 cents per share from the previous rate of 22.5 cents per share. The dividend declared by the board is payable Sept. 12, 2012, to shareholders of record Aug. 17, 2012. The increase raises the annual dividend rate from 90 cents per share to $1.10 per share.
Here is an update of my open options:
Open:
03/12/12 Sold 1 AZN Oct 20 ’12 $45 Put @ 3.00
03/28/12 Sold 3 BBVA July ’21 ’12 $7 Puts @ .55
04/09/12 Sold 1 VOD July 21 ’12 $27 Put @ 1.45
04/30/12 Sold 1 PG July 21 ’12 $62.50 Put @1.42
06/20/12 Sold 2 WAG Oct 20 ’12 $28 Puts @ 1.20
With the recent fear in the market, Kinder Morgan, Inc. (KMI) has dropped from around $40 to below $33 since April. Instead of waiting over three weeks and hoping it trades above $30 so it doesn’t get assigned, I decided to go ahead and close out of my options position. I do think the company looks attractive at a current 4% yield but I think there are better opportunities out there. So I will make $160 profit before commissions. This brings my yearly options profit to $1365.
Open:
03/12/12 Sold 1 AZN Oct 20 ’12 $45 Put @ 3.00
03/28/12 Sold 3 BBVA July ’21 ’12 $7 Puts @ .55
04/09/12 Sold 1 VOD July 21 ’12 $27 Put @ 1.45
04/30/12 Sold 1 PG July 21 ’12 $62.50 Put @1.42
Closed Out:
05/23/12 Bought to Close 1 KMI June 16 ’12 $30 Put @ .65
01/23/12 Sold 1 KMI June 16 ’12 $30 Put @ 2.25
Profit: $165 before brokerage fees.
05/14/12 Bought to Close 1 CHK July 21 ’12 $16 Put @ 2.52
04/25/12 Sold 1 CHK July 21 ’12 $16 Put @ 1.13
Profit: -$139 before brokerage fees
04/12/12 Sold 1 JNJ Oct 20 ’12 $62.50 Put @ 2.60
04/30/12 Bought to Close 1 JNJ Oct 20 ’12 $62.50 Put @ 1.62
Profit: $98 before brokerage fees (not bad for only waiting 18 days)
01/19/12 Sold 2 TSM July 21 ’12 $15 Puts @ 1.80
04/09/12 Bought to Close 2 TSM July 21 ’12 $15 Puts @ 1.03
Profit: $154 before brokerage fees
01/03 – Sold 1 RIG $35 May 19 ’12 PUT @ 2.11
03/12 – Bought to Close 1 RIG $35 May 19 ’12 Put @ .09
Profit: $202.00 before brokerage fees
01/06 Bought 10 SLV Jan 19 ’13 $45 Calls @ 1.05
01/26 – Sold to Close 5 SLV Jan 19 ’13 $45 Calls @ 1.85
02/28 – Sold to Close 5 SLV Jan 19 ’13 $45 Calls @ 2.03
Profit: $890 before brokerage fees
Total Profit before fees: $1365
I am reporting a few days late but I decided to close out of my options trade with CHK on 05/14. I thought it might be a good speculative play on natural gas. It still could be but there is way too much uncertainty with this company. Management has been terrible and I don’t trust them. I am taking a loss but it’s better to take a small loss now than a bigger loss later on. This drops my yearly options profit $139 to $1205.