Tuesday, December 31, 2013

December 2013 Options

Happy Holidays Everyone,

December proved to be an interesting month to say the least, but it goes to show how options can still help out in adversity.

CSCO and F both had a rough month on revised guidance, each having a modest drop over the course of a couple of days.  Being that I have a larger portion in both, the cov'd calls at the strike prices I want to be above were not as lucrative as when the price of the stock is closer.  (Ie around 22.50 for CSCO  (which now has risen back) and F in the 16.75 range).  That being said I had to sell some longer running cov'd calls so my monthly total wasn't as high as it could be (they will be expiring in Jan) but I still managed to make $1393.26 of profit.

SWHC also had a strong month, which is normally a good thing, but I was in a $13 Dec 23rd covered call, with my stock avg cost of $13.55.  So even after the .30c premium on that one, I took a couple hundred dollar hit when I had to sell them with .25c loss per share (1200 shares)


So that brings my total for 2013 to $33,790 (aprrox) of profit on options (short term).   I am pretty excited/pleased with that as this is my first true year of doing them.  I made many, many less "rookie" trades (ahem mistakes) this year, than when I started in mid 2012, and now that I have a comfort level with what I'm doing, I'm looking very forward to many years of success and increasing yearly totals.

2014 looks to be a great year and I have some goals as well as new guidelines I am going to post about, but that will be after the new year.   Enjoy the New Years celebration and we'll catch you in 2014.

Tuesday, December 3, 2013

Nov 2013 Options

November was quite a busy month, with 5 Fridays in the month it meant an extra week of weekly option trading, even if Thanksgiving week was included in there.

For Nov, I was able to generate $2972.58 in total option income, which I'm very pleased with.  Was hoping to break the $3K mark, but that is a number that I'm sure will be hit in the future.  Overall the options, along with some of the short term capital gain I saw from the options (Citigroup -C, in particular), it turned out to be a very profitable month.  As indicated by purple, I kept ALL option earnings in the accounts for the month. (Didn't take any as profit to use)

Including my Nov options income, my yearly total from options (short term) so far is: $32,667.00.  The options, along with the short term capital gains from the stocks made Nov a $4724.00 total profit month.

Here's hoping that December will be just as successful, until then Happy Holidays!

Tuesday, October 29, 2013

October Options Total

October turned out to be a roller coaster month and I didn't get as much income as I was hoping to secure.  Got a few strike prices below on some of my positions early in the month when the markets dipped (low premiums for the strike prices I needed to be at to prevent a capital loss if sold), only to finish strong with some nice call and put premiums as the markets closed out Oct on a run.  My total for Oct was $1335.00 in option income.

The $1335.00 in Oct brings my 2013 options total income from all accounts to $27,943.00 (est) for the year so far.

I will be able to add more capital to my dividend holdings in the next week or so (which in turn will be more margin for option stocks), as well as getting some dividend payouts on stocks thats I'm using solely for options (VZ and T), so I'm expecting Novembers total return to be much higher.  Should be my most lucrative month since starting this strategy and I'm looking forward to seeing how it plays out.

Wednesday, September 25, 2013

Sept Options Total

September's earnings were down due to a few reasons.  I decided to change my strategy a little (feeling the market would uptick) and go for a little more capital gains at the cost of juicier premiums (ie going next price up for a lower premium in hoping to catch the stock price rising), I have had mixed results so far doing this. I think in October I'm going to go back and try and get as little capital gains in exchange for better premiums, and see how much option income I can generate (without losing profit by selling below avg price points obviously). 

So for Sept, total income looked like this:

We'll see if we can get back above the $2K mark for next month. 
-The Dividend Addict

Thursday, February 7, 2013

Jan 2012 Options

Review of all my options for the month of Jan.  For the month I brought in $2872.00 of passive income from stocks I already own and/or using margin to cover puts on stocks I'm waiting for the price to come down on.

Tuesday, January 15, 2013

2012 Q4 Dividend Total

Q4 continued the trend of 8 quarters of continued dividend growth for me.  During the last 3 months, I had 4 stocks increase their dividend (noted by white cell).  My 2011 Q4 dividend total was $122.05, so as you can see the $393.51 collected last quarter was quite a jump.  New capital and the corresponding stock purchases and dripped returns all played a part in the increased rate of dividend return.  Looking forward to seeing what the Q1 total will look like.

1/14/2013 Weekly Options


Here are my weekly option trades for this week:


BAC calls:
With BAC price dropping last week, the $12 calls expired worthless so that is money kept.  I am still very bullish on BAC, so any dip in capital is not too concerning for me.  The biggest decision to be made tomorrow is to resell these at $12 or go for a $11.50 call to colllect more profit for the week.  Will have to see how the market opens tomorrow and decide.

F puts:
F made it interesting on Friday, hovering at $14, but in the end these expired worthless as well, so profit taken.  I'm also very bullish long term on F, so even if assigned I wouldn't have been concerned.

BAC puts:
Took somewhat of a gamble and were assigned these.  I will definitely sell $11.50 weekly calls on these tomorrow.  Entry price point for these 500 shares is $11.31.

Monday, January 7, 2013

1/7/2013 Weekly Options Trades

Going to start sharing the weekly options I'm doing as well.  I have set up all my dividend accounts with margin and use that margin money to try and drive weekly, passive income, without having to touch my dividend "base" stocks.  As you will see, these are still well known stocks, some have dividends, others do not.

 So this week so far, I've brought in $793 in passive income.

Results:  AA expired worthless, although capital dropped, will resell $9.50 calls or sell stock and move to a new position, cost basis is sub $8.50 from prior call expiration's on this one.

BAC - took a gamble on this 12.50 put, the stock dropped capital as well, I will be assigned stock at $12.11 on Monday. I will most likely sell $12 weekly calls and only take out the differnce of the premimium.  Ie if I can get .16 cents for the call, will only take out .05/share to get the costs basis down to $12 in case BAC raises to $12 by end of week and I'm forced to sell.

Ford puts expired worthless, so money in the bank.