Options Trading Income Report – March 2017

Options Trading Income Report - March 2017

105.14
Total March Income
76.37
Total 2017 Net Income

Back in the stride…

March was definitely a month that put me back into stride with where I ended 2016. I got back into the routine of selling options instead of buying them and I inched closer to my usual 80+% win rate.

Option Trades

The biggest change in March was the increase in pace of my trading. Since I’ve switched over to trading mostly fairly conservative spreads (you can see my current plan here) my expected win amount per trade (also known as expectancy) has dropped a bit. To make up for the decreased win per trade, I have to increase the frequency of my trading quite a bit.

This turned into closing eight trades this month instead of the usual three to four. I know that’s not a huge increase, but it’s about what my small account can handle in terms of buying power reduction.

I do have to say the frustrating part is my commissions basically doubled since i’m trading two contracts per trade. However, if I can keep my win rate around 80% or better, it really shouldn’t matter in the long run.

In all likelihood I’ll mix up selling puts/calls with selling spreads and I’ll start looking into strangles as well. But for now i’m going to stick to selling mostly spreads so I can get a handle on how they work and how to adjust them. To that end, I’ll be putting out another course review soon on a course I just finished which covers the topic of selling spreads for monthly income.

Dividend Income

This was one of my heavy dividend months and it clearly shows with the over $20 I earned this month. With the stocks I have in my dividend portfolio right now, it’s really feast or famine since they’re all “C” month stocks with the exception of JNK.

If I were in a situation where I was counting on those dividends to help with my actual income, i’d make some adjustments to turn those payments into a steady flow vice lump sum payments every three months.

Since I’m still in the building phase for this portfolio, I’m just going to leave it alone and continue to let all those stocks continue to grow.

Lending Club Income

I know i’ve praised the benefits of Lending Club quite a bit on here, but I’m still a huge fan of this income stream. I’ve increased the investment in Lending Club by $300 which should show as an increased payment next month.

According to the site I have a 8.14% adjusted net annualized return on my current investment of $500. If I wasn’t to put in any additional cash this return would net me just over $40 at the end of the year. However, I’m positive I’ll be putting additional funds into this account to continue to grow this income stream over the next few years.

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: $20.57     Lending Club Income: $1.55     Option Trading Income: $83.02     Total Income:  $105.14

2017 Net Income:  $76.37

 

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 40.858 $.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 $1.81
VLO $7.12
ADM $3.24
FLO $1.60
ABR $6.80

 

Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
CSP HTZ Mar 17 $22.5/$25 Calls $.35 $.22 -$6.14 $6.86 37.14% 1
P UNG Apr 17 $6 Put $.18 $0.05 -$1.57 $11.43 72.22% 1
CC GRPN Apr 17 $5 Call $.10 $.0 -$1.57 $6.43 80% 1
CSP HTZ Mar 17 $22.5/$20 Puts $.65 $.32 -$6.14 $23.86 46.15% 1
CSP XRT Apr 17 $40/$39 Puts $.12 $.06 -$6.14 -$.14 50% 1
CSP CLF Apr 17 $11/$12 Calls $.20 $.04 -$6.14 $9.86 80% 1
CSP AKS Apr 17 $8/$9 Calls $.30 $.09 -$6.14 $14.86 70% 1
CSP GILD Apr 17 $62.5/$60 Puts $.26 $.10 -$6.14 $9.86 61.54% 1

CC = Covered Call  P = Sold Put  CSP = Credit Spread  DSP = Debit Spread -Rx = Roll #X from previous trade