July 30

Options Income And Trades – July 2016


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

One of my mid-year goals is to get back into selling more options to earn options income. Last year I was aggressive and managed to make more than $6,000 in options income. This income along with my 2015 dividend income totaled $9,063. While I love dividends and my goal is to retire on just dividends, I see options income as a fantastic way to get me to my goal faster. Last month was the first month this year that I really tried to make money selling options. Last month selling options, I earned $454.74. I ended July with options income of $1,007.57.

Amber Tree Leaves is writing a series on options investors. I was lucky to be his first blogger interview. If you’re interested in learning more about options, this is a good site to visit. Here’s a link to my interview. Since I started selling options last year, I’ve made $7,655; which has been used as future investment cash in my Investment Hunting portfolio.

Options Income and Trades

Covered Calls

I sold to open four covered calls: COP $76.58, GILD $135.29, O $1,239.26, PM $331.28

I bought to close four covered calls: COP $31.00, GILD $45.00, O $779.71, PM $198.29

Cash Secured Puts

I sold to open three cash secured puts: MGA $109.29, MET $82.29, F $119.29

I bought to close two cash secured puts: MET $13.00, MGA $18.71

Options Income

Total income in July came to $2,093.22, less $1085.71, for net income of $1,007.57.

Options Trades – Next Steps and Takeaways

I had no trouble finding options value this month, but the market is still so hot that my covered calls are getting swallowed-up. When this happens, I look to carry these options over to a later date. I was able to do so in most cases, which is why you see opens and closes on the same stocks. I’m fine with this, because I’m making more money to wait out a market dip. If the market stays hot, I could get burned on a few calls. Reality Income at $60 could burn me. But, I sold the contract way out to March 2017. I feel $60 is a fair price for this stock. My hope is the market stops loving it like is has recently, and the stock price will go below or close to $60. If that happens, I’ll but to close and sell to open a new contract.

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


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