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 firstname.lastname@example.org, leave a comment on the site or catch me on Twitter @optionstudent.
Until next month!
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|
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|
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