I hate parting with stocks when I’m in the red, but that’s what I did last week. I closed my National-Oilwell Varco NYSE: NOV position. I thought about holding on another year for a potential oil price return, but instead I opted to sell and claim the loss on my taxes.
NOV Stock Purchases
I had purchased National-Oilwell Varco stock in three lots.
- 1/7/2015 – 30 shares at $61.62 = $1,848.60
- 2/10/2015 – 25 shares at $52.33 = $1,308.25
- 6/8/2015 – 45 shares at $48.69 = $2,191.05
My overall cost basis was $53.479, totaling $5,347.90
NOV Dividend Income
I collected dividends six times.
- 3/30/2105 – $25.30
- 6/26/2015 – $46.24
- 9/28/2015 – $45.67
- 12/18/2015 – $47.25
- 3/28/2016 – $47.90
- 6/24/2016 – $5.28 (Major dividend cut)
- 9/30/2016 – $5.29 (No DRIP)
Dividend Income Total of $222.93
NOV Dividend Reinvestment (DRIP)
- 3/30/2105 – .5169 shares
- 6/26/2015 – .9443 shares
- 9/28/2015 – 1.2641 shares
- 12/18/2015 – 1.4033 shares
- 3/28/2016 – 1.5377 shares
- 6/24/2016 – .1447 shares
DRIP Shares Total of 5.811. DRIP shares cost basis was $37.45, totaling $217.64
NOV Options
I sold six NOV options contracts; four covered calls and two cash secured puts. Income from option premiums totaled $494.18
NOV Totals and Closeout Information
- Share Total = 105.811
- Total Share Cost = $5,565.54
- Fees (options, buys, and sells) = $70.62
- Options Income = $494.18
- Total Cost = $5,565.54 + $70.62 = $5,636.16, less $494.18 (options income) = $5,141.98
- Stock Sale, 105.811 shares at $31.50 per share = $3,333.05
Total Loss is $5,141.98 – $3,333.05 = -$1,808.93
Not my ideal ending. I owned NOV in my taxable account. This loss as a tax write-off will be useful to offset other collected dividends and income. You cannot win them all.
Do you ever sell stock for tax reasons, or do you hold stocks in the hope of a turnaround?