Options Trading Income Report – July 2016

July 2016 Income Report

140.90
Total July Income
676.23
Total 2016 Net Income

Staying in the groove…and a first!

July was active (for me anyway) and great!

Another month of successful trades and a new first. This month I closed out my first spread trade with success, so I’ll start with it.

I decided to test the waters with spread trades to see how they “felt” and whether or not I liked them. The jury is still out, but this trade was a success. I sold a SWN 12/13 vertical put spread on 10 June and bought it back on 12 July and captured 78% of the value of the spread.

For those of y’all out there who really dig charts, here’s what the chart looked like during the trade:

SWN July 2016 Trade Chart

SWN July 2016 Trade Chart

In my eagerness to get into a spread trade I didn’t wait for high volatility and this led to how little I actually earned on the trade. It also affected how far I could get away from selling an ATM spread. On future spread trades, I’ll be sure to wait for those higher volatility moves so I can make more on each trade.

Additionally this month I sold my AT&T (T) stock. I made a mental mistake buying it back in June and this was the correction of my mistake. I paid too much attention to the dividend yield and not the other factors of buying good growth dividend stocks (payout % and growth rate).

Once I realized my mistake I placed the trade to get me out of the stock. Fortunately, it moved up ever so slightly and I held it long enough to collect the dividend. However, when Uncle Sam comes along to collect his share I’m sure it’ll be close to breakeven.

The rest of my month focused on my core strategy of selling puts against stocks around $10 or less. I added Groupon (GRPN) to the mix of stock I trade because it’s a low-dollar stock with decent volatility (usually). We’ll see if it stays in the mix or not, but I was happy to catch a little bit of premium in the trade.

If I maintain my track record of the past seven months, I should clear $1,000 this year in trading. Not too bad considering my last two years of losing money!

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
July Option Trading Income: $113.54

July Dividend Income: $17.67

July Stock Trade Income: $9.69

Total July Income:  $140.90

Total 2016 Net Income:  $676.23

 

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 $.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
TRN 100 $.11 $.44 $48.10 .91% A
VLO 8 $.60 $2.40 $52.21 4.59% C

A = (Jan/Apr/Jul/Oct)

B = (Feb/May/Aug/Nov)

C = (Mar/Jun/Sep/Dec)

M = Monthly

 

July Dividend Payments

Stock/ETF Total Dividend Paid
JNK $1.87
T $4.80
TRN $11.00

 

July’s Stock Trades

Stock # Shares Entry Price Exit Price Commission Net Profit
T 10 $40.52 $42.89 -$14.01 $9.69

 

July’s Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
SP SWN Jul 16 $12/ $13 Puts $.23 $.05 -$6.14 $11.86 78.26% 1
P CHK Jul 16 $4.5 Put $.34 $.14 -$3.07 $16.93 58.82% 1
P CLF Aug 16 $5.5 Put $.42 $.18 -$6.11 $41.89 57.14% 2
P CLF Aug 16 $7 Put $.64 $.29 -$3.07 $31.93 54.69% 1
P GRPN Aug 16 $3.5 Put $.22 $.08 -$3.07 $10.93 63.64% 1

CC = Covered Call

P = Sold Put

SP = Spread

-Rx = Roll #X from previous trade

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