Options Trading Income Report – January/February 2017

January/February Income Report

28.77
Total January/February Income
28.77
Total 2017 Net Income

Still playing catch up…

I lived in Japan for about three years and I use to go running at a bunch of these small town races with my running club. Invariably, as I’d be about half way through the race I hear this noise behind me. Something that sounds like a zombie running on a respirator after having emphysema in real life.

Slowly but surely up next to me would trudge up an old Japanese man, probably in his 70s who would continue on to pass me despite what should have been my “youthful advantage” (I never was very fast). It seemed at the time no matter how much I would try to catch up I could never catch the old man once he passed me.

That’s about how I feel right now trying to play catch up on Income Reports and all the posts I have planned out…but unlike my former, slower self I promise I’ll get there over the next few weeks!

Now, onto my trades!

 

Option Trades

This year I’ve resolved to pick up the pace on my trading a bit. Last year I was averaging 2-5 trades per month and this year I want to pick it up to about 10 per month. I can’t follow the same plan I used last year of selling cash secured puts simply because I don’t have enough buying power to do so.

This year, as you can see below, I’m focusing more on spreads and I’ll be devoting the next few months to finding resources for learning about spreads, how best to trade them and seeing what courses are available.

Unfortunately, the year is off to a bit of a rough start due to some trades from the tail end of 2016. Apparently the Christmas season put me a little out of my mind and I ended up BUYING *gasp* some spreads and a put in CLF.

As you can imagine, it didn’t go my way and that’s why i’m starting the year in the hole…awesome. The trend in my current trading is positive though, so i’m confident it’ll correct itself. If it doesn’t change soon, I’ll have to reassess my plan for the year.

 

Dividend Income

My dividends are holding steady and just chugging along. Nothing super sexy about it, but they’re a little seed that’s going to keep growing over the next few years.

Both ADM and VLO raised their dividends February which was great and inline with my dividend growth investing plan. ADM raised their dividend by $.08 annually and VLO by $.40 annually and i’ll collect both in March!

I also added 40 shares of the REIT ABR to my portfolio in late February. This is part to replace HCP which I dropped out of my portfolio after it spun off QCP and dropped its dividend. It’s not going to make any huge money just yet with an annual dividend of $.64 but I should be able to buy about one share each time I collect the dividend. I’m hoping this translates into a faster building dividend snowball, but only time will tell!

Lending Club Income

Lending Club is performing well and is something I’m going to continue to pursue. Like my dividend investing it’s small, but I think in the next few months the earnings from Lending Club will easily eclipse my dividend income.

It’s also building to the point where the return of my capital plus interest will allow me to purchase a new loan every few months. My goal here is to get to a critical mass where it’s eventually adding a new loan each month and then multiple loans a month.

Again, it’s a seed recently planted so it’ll take me a bit to get there but it’s definitely moving in the right direction

That wraps up this month’s income report. I hope your trading is going well this year and you’re learning something new about options trading!

I’d love to hear from y’all, so 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
Dividend Income: $3.65           Lending Club Income: $2.59          Option Trading Income: -$35.01

Total Income:  -$28.77               2017 Net Income:  -$28.77

 

Current Stock/ETFs Holdings

Symbol # Shares Quarterly/Monthly Dividend Per Share Annual Dividend Per Share Cost Basis Yield Pay Month
ADM 10.207 $.32 $1.28 $37.10 3.45% C
JNK 10.354 $.183 $2.20 $33.95 6.68% M
VLO 10.283 $.70 $2.80 $52.47 5.33% C
FLO 10 $.16 $.64 $15.11 4.23% C
QCP 2 $0 $0 $16.25 0 N/A
ABR 40 $.16 $.64 $7.39 8.66% C

A = (Jan/Apr/Jul/Oct)  B = (Feb/May/Aug/Nov)  C = (Mar/Jun/Sep/Dec)  M = Monthly

 

Dividend Payments

Stock/ETF Total Dividend Paid
JNK $3.65

 

November/December’s Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
Bought Put CLF Feb 17 $7 Put $.29 $0 -$1.53 -$30.53 -100% 1
Debit SP USO Feb 17 $11.5/$9 Puts $.70 $0.09 -$6.14 -$67.14 -87.14% 1
P-R1 GRPN Jan 17 $3.5 Put $.12 $.20 -$4.61 -$12.61 -66.67 1
SP X Jan 17 $31/$30 Puts $.21 $.05 -$6.14 $9.86 76.19% 1
R1 GRPN Feb 17 $3.5 Put $.20 $.03 -$.03 $16.97 85% 1
SP OAS Feb 17 $14/$13 Puts $.25 $.05 -$6.14 $13.86 80% 1
SP AKS Feb 17 $10/$11 Calls $.25 $.09 -$6.14 $9.86 64% 1
SP X Feb 17 $35/$36 Calls $.32 $.13 -$6.14 $12.86 59.38% 1
SP TWTR Mar 17 $16/$15 Puts $.36 $.18 -$6.14 $11.86 50% 1

CC = Covered Call  P = Sold Put  SP = Spread  -Rx = Roll #X from previous trade

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