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.

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

 

 



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.

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:

Results:

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.

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.

Q1 2012 Progress and Options/Day Trading

So I've been horrible about updating this bad boy, but hopefully will find more time now. I know most of the bloggers seem to do a monthly review, but I don't think that will work for me.  Being a husband, a father of two and trying to hold down a job and train for an Ironman all that same time eats up a lot of my "free time".

To sum it up, this past quarter was a good one.  5 of my stocks raised their dividend amounts, bringing my quarter total to $161.55 of dividends received, which I'm very happy about.  Considering Q1 of 2011 I brought in $17.94, you can see it's around a 1000% increase. Obviously additional stock purchases played in here, but none the less, the train is heading in the right direction.  I still firmly believe that dividend growth stocks are the most sound way to invest and continue to plan on using this as my A1 strategy for my retirement.

That being said, I have really become interested in options and some day trading, I've become pretty well read on covered calls as well as puts, and now that I have my feet wet so to speak with a few trades, I think both strategies can provide a nice little enhancement to overall return.  Covered calls can almost be viewed at as "dividend enhancer" if played right, and puts you can use to sit and wait, while collecting a premium, until a stock you want gets to a price you like.  Both are win/win in my book.  Even if a covered call gets called you away, just simply re-initiate in the stock and it's like you never lost it in the first place.

The way I use the profits from the options/day trades/etc.. is to include that into my core reinvestment that I make each month, so essentially it helps me to build more capital (faster) to invest in DGI stocks.

Below are the options and trades I have made so far, as you can see, I've had some hits (and the biggest one AUMY, was a impulse buy without even thinking or taking a quick look at the stock chart, lesson learned).  But even with my losses, overall I'm up close to $1200 in just 3 months.

Well that's all for now, be back in June at the latest, but I hope to try and post more.

-The Dividend Addict