Last Friday was call expiration for the August 17, 2018 options. We sold a second call on Apple (AAPL) and it was called away early at $200. We did quite nicely on AAPL having bought a $176.98. Income from call premiums and dividends alone equaled $739 which is an over 4% yield in 8 months. Add to that the capital gain of just over $2,300.
There will be more than one investor who will point out lost opportunity. By simply holding AAPL the additional gain the call buyer experiences is another $1,600 dollars that I will not realize.
My argument is that I invest for income and you never know when this long term bull market will turn on you. I have my money in the bank and that is good enough for me.
The table below lists trades made to date. With the AAPL call being assigned, we have $20,000 to invest. I have a few ideas and will post them when I execute the trades.
I am liking the 11.22% yield to date. My internal hurdle is no less than 5%. I don't intend to use my principle for living expenses. Since I don't work, I need my investments to create no less than 5% to fund my family's lifestyle.
2018 COVERED CALLS |
|||||||
| Invested Capital |
Realized
Capital Gain
|
Div & Call Income |
Yield on Invested Capital
|
||||
| $68,222.00 | $2,302.00 | $5,352.00 |
11.22%
|
||||
| SYMBOL | Number of Contracts Expiration | BASIS | Bought Date | SHARES | INCOME | ||
| QCOM | Bot | $64.87 | 1/2/2018 | 100 | Open | ||
| Contracts | 1 | Strike | Premium | Div | Expired | ||
| Expiration | 3/16/2018 | $70.00 | $1.25 | 2/27/2018 | $125.00 | ||
| $0.50 | $50.00 | ||||||
| 5/27/2018 | |||||||
| $0.50 | $50.00 | ||||||
| Added 100 Shs | $54.00 | 4/4/2018 | 100 | ||||
| Contracts | 2 | Strike | Premium | Div | Expired | ||
| Expiration | 6/15/2018 | $60.00 | $1.31 | 5/29/2018 | $262.00 | ||
| $0.62 | $124.00 | ||||||
| Contracts | 2 | Strike | Premium | Div | Open | ||
| Expiration | 9/21/2018 | $65.00 | $1.21 | 8/27/2018 | $242.00 | ||
| $0.62 | $124.00 | ||||||
| NUE | $66.60 | 1/3/2018 | 400 | OPEN | |||
| Contracts | 4 | Strike | Premium | Div | Expired | ||
| Expiration | 2/16/2018 | $70.00 | $1.35 | After Expir. | $540.00 | ||
| $0.00 | |||||||
| Contracts | 4 | Strike | Premium | Div | Expired | ||
| Expiration | 4/20/2018 | $72.50 | $1.05 | 3/28/2018 | |||
| $0.38 | $572.00 | ||||||
| Contracts | 4 | Strike | Premium | Div | Expired | ||
| Expiration | 7/20/2018 | $67.50 | $1.00 | 6/28/2018 | |||
| $0.38 | $552.00 | ||||||
| Contracts | 4 | Strike | Premium | Div | OPEN | ||
| Expiration | 10/19/2018 | $75.00 | $1.00 | 9/28/2018 | $552.00 | ||
| $0.38 | |||||||
| RIOT | $21.08 | 1/11/2018 | 200 | Expired | |||
| Contracts | 2 | Strike | Premium | Div | |||
| Expiration | 2/16/2018 | $22.00 | $2.25 | No Div | $450.00 | ||
| Contracts | 2 | No Div | Expired | ||||
| Expiration | 6/15/2018 | $12.00 | $1.00 | $0.00 | $200.00 | ||
| AAPL | $176.98 | 1/22/2018 | 100 | Assigned | |||
| Contracts | 1 | Strike | Premium | Div | Expired | ||
| Expiration | 4/20/2018 | $195.00 | $2.20 | 2/4/2018 | $220.00 | ||
| $0.63 | $63.00 | ||||||
| Contracts | 1 | Strike | Premium | Div | Assigned Early 8/10/2018 | ||
| Expiration | 8/17/2018 | $200.00 | $3.10 | 5/11 & 8/10 2018 | $310.00 | ||
| $1.46 | $146.00 | ||||||
| TWTR | $25.91 | 2/5/2019 | 200 | Assigned | |||
| Contracts | 2 | Strike | Premium | Div | $218.00 | ||
| Expiration | 2/9/2018 | No Div | |||||
| $27.00 | $1.15 | $0.00 | $230.00 | ||||
| GILD | $79.99 | 3/8/2018 | 100 | OPEN | |||
| Contracts | 1 | Strike | Premium | Div | Expired | ||
| Expiration | 5/18/2018 | $87.50 | $1.10 | 3/15/2018 | $110.00 | ||
| $0.57 | $57.00 | ||||||
| 6/14/2018 | |||||||
| $0.57 | $57.00 | ||||||
| Contracts | 1 | Strike | Premium | Div | Open | ||
| Expiration | 9/21/2018 | $80.00 | $0.98 | 9/14/2018 | $98.00 | ||
| $0.57 | |||||||
Another important fact is total return. Right now due to the rogue trade on RIOT and the weakness of NUE, we have a paper loss of about $1,600 or 2.39%. If you are an income investor, you have to be immune to these paper losses. I will not sell at a loss. I will hold these securities and continue cash the dividends and sell calls until an individual holding is assigned.
Interesting experiment.
M* MoneyMadam
Long all positions noted with calls as noted
