June 30

June 2015 Options Trades


This content was saved from the old investmenthunting.com website, in case anyone was still looking for it (with the help of archive.org)

June 2015 is almost in the books which means its time for my monthly options trades update. June marks the third month I have been selling options. I’ve made a couple mistakes and but nothing I cannot live with. Selling covered calls and cash secured puts is a great way to increase ROI and on occasion buy stocks on the dip. Additionally an options strategy is a great way to get more money for investing. By simply selling what amounts to insurance policies I have been able to make money. In May, I sold 15 contracts for a profit of $1,366.38. This month I sold 8 options trades for a profit of $1,230.32. In the three months I have been selling options I have made $3,797.70; which is being used as future investment cash in my Investment Hunting portfolio.

Options Trades

Of the 8 options trades I made in June six were covered calls and two were cash secured puts. One of my calls was assigned, which means I sold 100 shares of AMGN for $15,500. On paper this looks like a loss because I bought AMGN a month previous for $162.50 or $16,250. I sold covered calls on AMGN last month and this month so I actually made money on this stock, but not much. I chose to sell an options contract on AMGN at $155 because if the contract executed which it ended up doing I think I can recapture it at a later date for a lower price. The chart below shows every contract I sold.

Covered Calls

I sold six covered calls: AMGN at $162.50, AMGN at $155, COP at $64, NOV at $50.50 and CPA at $90. As mentioned AMGN at $155 executed, so my shares were sold off. Nothing to worry about, this freed up my cash account and I immediately sold a put on AAPL.

Cash Secured Puts

I sold two cash secured puts: UNP at $99 and AAPL at $126.

Options Trades – Next Steps and Takeaways

For the month of July I plan on slowing down on my options trades. I use options primarily as a way to earn extra money for investing. By this I mean, although I am happy if a contract executes, I am more happy when contracts expire worthless and I get to pocket the insurance money. The market has been pretty volatile lately and with interest rates fears and A Greece default, I suspect this trend will continue. I will only sell options trades on those stocks where the value is exceptional, this way if a contract exercises I get a fantastic deal on a great stock.


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