Options Trading Income Report – June 2014

By July 3, 2014Trading for Income

What a crazy month.

I have absolutely no idea why Cliff took the positive bounces it did this month. There was definitely positive news this month about Cliff which was definitely grounds for Cliff to have a slight bounce back. However, I’m still pessimistic about Cliff in the long-term. The downward trend will probably continue due to the suppressed iron ore prices.

Anyways, this definitely wasn’t the best month for me and I was actually at a slight loss. Some of this is attributable to my incorrectly implemented protective put option, but mostly it was due to the crazy bounce Cliff took over the past month. Take a look at the chart to see what I’m talking about.

CLF_June

This month I also opened a long-term protective put for October at a strike of $18.00. My thought process is that Cliff will return to its downward trend after the 29 July board meeting. This put will allow me to sell my 200 shares at $18.00, or roll the put out to a future month if Cliff continues the downward trend.

The best part of this month is that I earned $30 on my stock from the dividend! I did nothing more than own that stock to earn that money…pretty sweet!

Let’s jump into the numbers below.

Account

June Net Income:  $(23.45)

Total 2014 Income:  $$190.60

Adjusted Share Price:  $ 19.13

Trades

Transaction Option Quantity Fill Price Commission Fees Net Amount
STO CLF 13 Jun 14 (W) 17.00 Call 2 $0.11 $5.00 $0.09 $16.91
  Cash Dividend         $30.00
BTO CLF Jul 14 15.00 Put 1 $1.20 $5.00 $0.04 $(125.04)
STC CLF Jul 14 15.00 Put 1 $1.18 $5.00 $- $113.00
STO CLF Jun 14 14.00 Call 2 $0.29 $5.00 $0.09 $52.91
BTC CLF Jun 14 14.00 Call 2 $0.55 $10.00 $0.07 $(120.07)
STO CLF Jun 14 (W) 14.00 Call 2 $0.68 $- $0.09 $135.91
BTC CLF Jun 14 (W) 14.00 Call 2 $0.61 $5.00 $0.07 $(127.07)

 

What’s Next

We’ll see how Cliff acts throughout July. The goal of course is to keep selling premium around the 200 shares I own and see how much we can make off it this month. I don’t expect to sell off my shares of stock this month, especially since I think Cliff will resume it’s downturn after the annual meeting on 29 July.

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