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.