Welcome to the sixth (#6) options income report - covering earnings I've made from options trading (naked puts and covered calls) in the month of August 2019
Options are the latest investment strategy in my portfolio - in short, I'm looking to use option trading to generate additional income from stocks I already have (covered calls) or would love to have (naked puts) in my portfolio. I mostly trade against dividend stocks only (at least for now).
I learn as I go, anything written here should be taken with a grain of salt, I'm no expert or certified financial advisor. Investments in stocks, options, funds, bonds or crypto are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
In August 2019 I made 15 naked puts and 5 covered calls. That makes a total of 20 trades. Wow, quite impressive.
I was trading with ET, PBT, T, NRZ PEI, FTR, AMD and WPG last month.
From now on I can tell that FTR was probably my dumbest trade last month, but I didn't have many options I was roll-forwarding it from March (will be troubled in the future). Also, I overtraded puts on ET stock, I was hoping to collect a weekly options income and sold way too much $14 ET puts, which latter in the month I had to roll forward (roll down to $13) with expiration dates in January and April 2020. Hope it won't be problem in the future
Naked puts:
- #47 Put Sell: ET SEP 20'19 14 Put @0.43
- #48 Put Sell: ET SEP 13'19 14.5 Put @0.66
- #49 T AUG 16'19 34 Put Sell @0.39
- #50 Selling Naked Put: PBT DEC 20'19 5 @0.4
- #53 ET JAN 17'20 13 Put Sell @1.08 (Roll Forward)
- #54 T NOV 15'20 33 Put Sell @1.45 (Roll Forward)
- #55 ET JAN 17'20 13 Put Sell @1.07 (Roll Forward)
- #56 Selling Naked Put: FTR JAN 17'20 2 @1.35 (Roll Forward)
- #57 ET JAN 17'20 13 Put Sell @0.89 (Roll Forward)
- #58 AMD AUG 30'19 29 Put Sell @0.40
- #59 Selling Naked Put: WPG APR 17'20 5 @2.37 (Roll Forward)
- #60 Selling Naked Put: NRZ OCT 18'19 14 @0.53
- #61 ET APR 17'20 13 Put Sell @1.08 (Roll Forward)
- #62 Put Sell: PEI APR 17'20 3 @0.3
- #64 ET APR 17'20 13 Put Sell @1.32 (Roll Forward)
Covered calls
- #51 Selling Covered Call: NRZ JAN 17 '20 16 Call @0.17
- #52 Call Sell: PEI JAN 17'20 6 @0.4
- #63 Covered Call Sell: WPG SEP 20'19 2.5 @0.9 (Dividend Capture)
- #65 Call Sell: PEI SEP 20'19 5 @0.2 (Dividend Capture)
- #66 Selling Covered Call: WPG SEP 20'19 2.5 @0.85 (Dividend Capture)
I enjoy selling covered calls more than naked puts. $712.6 were made from naked puts and $240 from covered calls. Statistically speaking these numbers equals to:
- 74.8 from naked puts
- 25.1% from covered calls
Hope I will be able to reach the 50/50 level soon.
Options income table
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
| 2019 | - | - | $109.20 | $214.00 | $339.80 | $408.80 | $527.20 | $952.60 | $2,551.60 |
In last August, in premiums, I've collected $952.60 (after commissions), which gave a nice 2.90% monthly boost to the total portfolio. Also, so far in 2019, I have collected in a total $2,551.60 which translates already as 7.78% income from options this year. Looks great.
Goals for August 2020 Options Income
When trying to set goals for options income it's much harder and unpredictable than trying to forecast dividend income.
Anyhow I will try - my goal for June 2020 options income is to increase it by 30% what I made this year - $1238.38 or more I'm looking now.
