June 27

June 2016 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)

It’s been a year since I last posted an options update. I stopped posting my results because there were only a handful of DG investors trading options. But it seems more and more have embraced options as a practical strategy. I’ll be posting monthly updates from this month forward. Amber Tree Leaves is writing a series on options investors. I was lucky to be interviewed by him. If you’re interested in learning more about options, this is a good site to visit. Here’s a link to my interview. 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 selling what usually amounts to insurance policies, I’ve been able to make money. This month I sold 6 contracts, 4 covered calls and 2 cash secured puts. My total options income for the month of June is $455. Since I started selling options, I’ve made $6,645; which has been used as future investment cash in my Investment Hunting portfolio.

Options Trades

Covered Calls

I sold four covered calls: PFG $146.29, F $36.29, DLNG 73.29, T 39.29.

Covered call income this month totaled $295.16

Cash Secured Puts

I sold two cash secured puts: MET $101.29, FLO $58.29.

Cash secured put income this month totaled $159.58

Options Trades – Next Steps and Takeaways

Although this is my first options post in a while, I’ve been selling contracts all year. It’s been a rough options year for me so far. My 2016 options income is $569. Obviously this is way down from last year. Last year, $569 would’ve been close to my monthly average options income. The reason for this is market volatility, which doesn’t always work in a traders favor.

Recent market drops caused by Brexit have helped my current open options contracts. Most of my open calls were sold before Brexit, so I’m looking good on these. Of the two puts I sold one is worse off. I sold my MET put 2 days before Brexit. This contract is underwater, but it still has a month to go. I’ll either carry this over or let it execute at $39 and buy 100 shares of MET. I’ll make my decision as the contract expiration gets closer. My other put is for FLO. The stock is trading above my strike price. This is a stock I want to own, but at a slightly lower price than current market value. If this falls below my strike price of $17.50, but not too far under this price, I’ll happily buy 100 shares.

Brexit has opened up the options market. There’s a lot of opportunity to sell puts with a high likelihood that contracts will expire worthless. I’ll probably sell more puts in July and fewer covered calls. With most markets down, covered calls are not of interest to me.

What are you’re thoughts on options trading? Do you trade options?


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