5 August, 2022 seen 17This article has been sitting in the blog's draft section since May 2018, I decided I just have to write an answer to…
On June 13th, 2022 I bought 40 shares of AMS: INGA (ING Groep NV) paying EUR 9.45 per share.
I'm now holding 140 shares with ING stock in my portfolio and my average buy price is EUR 10.16.
The ING Group is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services
My goal is to invest about EUR 10,000 in ING bank stock by the end of 2022 and sell covered calls on it for generating income.
In fact, ING bank is the only stock in my stock portfolio for now. Instead of spreading my efforts on 30 individual stocks, I have decided to focus on one - ING bank has been on my radar for a few years already.
I like ING bank stock for the following reasons: decent dividend paying stock, optinable and European stock. I've decided to stick with European stocks for a few next years, before trading US stocks again.
- Running Total 17 Trades since April 4, 2022
- Options income: EUR 135
As I have already invested EUR 1,422, I need to invest an additional EUR 8,579. For this money, with today's price I could buy additional 907 shares. Total 1047 shares. Enough to write 10 covered calls.
10 covered calls at the current stock price of EUR 9.45 and strike price of EUR 9.5 with an expiry of 4 days would give about EUR 0.2 per share. Total EUR 200. Quite good income in just 4 days. But as my break even price is 10.16 I would actually lose my funds. To avoid losing funds I would need to sell higher strike price options for less premium.
By investing some small bits over the longer time period I'm euro cost averaging my average but price, which I believe is one of the best investment approach for the long term.
For now, I'm investing with covered calls only, but latter I might add put options and play the wheel game. Learn more at my paid newsletter: Covered Calls with Reinis Fischer
On the weekly chart, ING stock price has just crosed the so called golden cross, and might be for a nice bull run. Of course if the gernal market is header for the bear market - let it be.
I'm looking to buy additional 60 shares with ING bank stock by the end of June, so I will have 200 shares and will be able to sell 2 covered calls