Options Trading Income Report – August 2016

August 2016 Income Report

201.39
Total August Income
877.62
Total 2016 Net Income

Saying goodbye to TRN

August was much like many of the other months this year with the exception of a call I sold against TRN.

I decided, in a similar fashion as with my CLF shares, to get rid of the stock I acquired as part of my testing of the Blue Collar Investor. As such, I sold a call against TRN with no intention of rolling it or closing it for a profit.

As fate would have it, shortly after I sold the call TRN bounced up above my strike of $19 to the low-$20s and hung out there until expiration. Though i’m losing $44/year in dividend income I’ve gained back $1900 I can use for selling options.

TRN will continue to sit on one of my watchlists, but for now it’ll likely stay out of my trading since it would require a good chunk of my buying power to sell puts against it. I may be open to selling some vertical credit put spreads, but we’ll see.

As for the rest of the month, it was a little slow. I finally got to close out my JCP roll as a win. Though the chart below shows a nice profit of $91.40, the total credit captured on the trade is around $40 when you take into account the cost of buying it back for the roll.

All-in-all I setup my good till canceled (GTC) order to close out at 50% of the original credit of the trade and I hit that mark!

The last little bit of new news is I set up dividend reinvestment on my dividend stocks. So, you’ll start to see fractional shares creep into my reports. I haven’t really figured out how to keep a good track of the cost basis for each of those as it changes with the fractional purchases, but I’m sure a simple spreadsheet will help out.

I hope your trading is going well and I’d love to hear from y’all. Feel free to drop me an email at nakedoptiontrader@gmail.com, leave a comment on the site or catch me on Twitter @optionstudent.

Until next month!

Happy Trading,

Patrick

 

Account
August Option Trading Income: $193.76

August Dividend Income: $7.63

Total August Income:  $201.39

Total 2016 Net Income:  $877.62

 

Current Dividend Stock/ETFs Holdings

Symbol # Shares Quarterly/Monthly Dividend Per Share Annual Dividend Per Share Cost Basis Yield Pay Month
ADM 10 $.30 $1.20 $37.10 3.23% C
HCP 10.145 $.575 $2.30 $27.28 8.43% B
JNK 10 $.183 $2.20 $33.95 6.68% M
STR 10 $.22 $.88 $25.33 3.47% C
T 10 $.48 $1.92 $40.52 4.45% B
VLO 10 $.60 $2.40 $52.47 4.59% C

A = (Jan/Apr/Jul/Oct)

B = (Feb/May/Aug/Nov)

C = (Mar/Jun/Sep/Dec)

M = Monthly

 

August Dividend Payments

Stock/ETF Total Dividend Paid
JNK $1.88
HCP $5.75

 

August’s Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
P-R1 JCP Aug 16 $9 Put $1.16 $.20 -$4.60 $91.40 82.76% 1
CC TRN Aug 16 $19 Call $.95 $0 -$16.57 $78.43 100% 1
P CHK Oct 16 $5 Put $.48 $.21 -$3.07 $23.93 56.25% 1

CC = Covered Call

P = Sold Put

SP = Spread

-Rx = Roll #X from previous trade

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