Thursday, August 23, 2018

2018 Call Portfolio Update

Updated 8/23/2018

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