Options Income August 2019

Updated: 28 September, 2019 seen 53

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:

Covered calls

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.