Options Trading Income Report – November 2017

By December 6, 2017Trading Income Report

79.86
Total November Income
113.21
Total 2017 Net Income

Moving in the right direction…

Option Trades

Finally! My trading has turned around in a positive direction and is in the process of getting back on track. As you’ll see below I had a single trade go just barely in the red on me and that was completely due to my poor placement of an opening trade. I entered into November with the mindset of placing aggressive trades on some underlying securities to collect a good amount of credit (GNC), and less aggressive on others (LC).

Unfortunately, when I place the trade against Lending Club it slipped my mind that my credit needed to cover the assignment costs if assigned on the trade. Which is what happened and why I lost just over a $1 on the trade.

As a whole, I’ve moved my trading plan back towards just selling puts and covered calls on assigned stocks. In the past I’ve called this pairing the “Wheel of Fortune” as the intent is to get into and out of stocks as quickly as possible primarily just using the assigned stock as a trading vehicle.

As the market would have it I was assigned on both GNC and LC. I’ve added a section below in which I’ll track my cost basis (or break even if you prefer), so you can see how this strategy works out for me. On the whole, this strategy won’t let you trade as frequently as just selling credit spreads or iron condors will due to the amount of buying power this strategy requires; however, I feel I have more control over the future of the trade than with those other strategies.

Dividend Income

This month JNK decided to grace me with a larger dividend than usual which is fine by me! Not much more to report in this section as the majority of my dividend payers will hit in December.

Lending Club Income

Lending Club continues to truck right on along. I added an additional $100 in new notes to my account which brought my total investment there to just over $700 with about $125 in cash to invest into additional notes. Unfortunately, one of my notes is sitting in a “Late 31-120 day” period, so we’ll see if they default on the loan. If this happens this will be the first loan default since I’ve begun using Lending Club, so I’ll let you know how that impacts my account. As of right now though I’m earning 5.73% on my account. This is down from the usual ~8% due to the bad note.

Well, that’s it for this month! As always I love hearing from you guys and having conversations with you about trading. If you have a question or just want to chat about trading, feel free to leave a comment below, hit me up in email at patrick@nakedoptionstrader.com or on Twitter @optionstudent.

Happy Trading,

Patrick

 

Account
Dividend Income: $1.82

Lending Club Interest Income: $4.80

Option Trading Income: $73.24

Total Income:  $79.86

2017 Net Income:  $113.21

 

Current Dividend Stock/ETFs Holdings

Symbol # Shares Quarterly/Monthly Dividend Per Share Annual Dividend Per Share Cost Basis Yield Pay Month
ADM 11.363 $.32 $1.28 $37.10 3.45% C
JNK 10.746 $.178 $2.20 $33.95 6.68% M
VLO 10.501 $.70 $2.80 $52.47 5.33% C
FLO 10.189 $.17 $.68 $15.11 4.50% C
ABR 42.665 $.18 $.72 $7.39 9.74% 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 $1.82

 

WoF Stocks/ETFs

Stock/ETF Assigned Cost Basis Cost Basis/Break Even Change
GNC $7.50 $7.03 -$.47
LC $6.00 $6.01 +$.01

 

Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit # Lots
P LC 17 Nov 17 6 Put $..17 $.00 -$18.03 -$1.03 1
P GNC 17 Nov 17 7.5 Put $.50 $.00 -$16.53 $33.47 1
P UNG 17 Nov 17 6 Put $.12 $.04 -$1.55 $6.45 1
P CLF 17 Nov 17 6 Put $.13 $.03 -$1.55 $8.45 1
P CLF 15 Dec 17 6 Put $.28 $.12 -$3.55 $12.45 1
CC GNC 15 Dec 17 7.5 Call $.31 $.14 -$3.55 $13.45 1

CC = Covered Call  P = Sold Put  CS = Credit Spread  DS = Debit Spread  IC = Iron Condor

BP = Bought Put -Rx = Roll #X from previous trade

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