Options Trading Income Report – October 2017

By November 5, 2017Trading Income Report

15.45
Total October Income
33.35
Total 2017 Net Income

Heading for breakeven…

Option Trades

Another month of average trading and slowly turning the ship towards the right course. I closed out the last of my Iron Condors this month at a loss which pushed me into the negative. That’ll probably be the last Iron Condor I trade for a while. Though I’ve had some success with them, they’re just not working out for me overall. I know some of you would tell me to stick with it and let the probabilities work themselves out, but I can’t afford to do that right now.

I’ve adjusted my trading plan (check it out here) back to selling puts, getting into a security and then selling calls against it. I sometimes refer to this as the “Wheel of Fortune” (WoF) plan. I recently closed the loop on my GRPN WoF and I’ll put out a detailed post on how it all turned out so you can evaluate the strategy for yourself.In general I’ll stick with the WoF concept with maybe a little experimentation on the side, but it’s the plan that worked for me in 2016 so I’m going to see if I can replicate my success.

I am playing with a way to reduce the buying power impact of the plan by selling a credit put spread instead of just a put and then selling back the long part of the spread if it looks like I’ll get assigned. This reduces the initial buying power impact on my account and allows me to take advantage of the downward movement in the stock with the long leg of the spread while taking the full credit in on the short side after assignment.

I still have to manage my buying power carefully, but I could have more open trades using this method. I’m still experimenting with how to put this concept together with selling puts, so we’ll see how it goes!

Dividend Income

Dividends continued to work away this month with JNK paying right around its usual $1.70. Nothing really special to talk about here.

Lending Club Income

For Lending Club, I added another note to the group bringing my total up to 36 notes. All of my notes, except this one, are $25 with this on $50. I increased the amount on this note just as a one-off experiment. The order for it got filled at the end of the month so it’ll start producing interest next month. Overall, I’m still REALLY happy with how Lending Club is working out.

Until next month!

Happy Trading,

Patrick

 

Account
Dividend Income: $1.67

Lending Club Interest Income: $4.64

Option Trading Income: -$21.76

Total Income:  -$15.45

2017 Net Income:  $33.35

 

Current 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 10.696 $.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 $1.67

 

Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit # Lots
CS LC 20 Oct 17 6/5 Puts $.25 $.09 -$6.10 $9.90 1
IC TWTR 20 Oct 17 20/19 Calls 16/15 Puts $.32 $.14 -$12.20 $5.80 1
IC COST 20 Oct 17 168/165 Calls 153/150 Puts $1.27 $1.69 -$12.20 -$54.20 1
CC GRPN 20 Oct 17 4.5 Calls $.13 $0.0 -$18.80 $7.92 2
CS CLF 20 Oct 17 7/6 Puts $.22 $.05 -$6.10 $10.90 1
P CLF 17 Nov 17 7 Put $.44 $.49 -$3.05 -$8.05 1
BP LC 17 Nov 17 5 Put $.03 $.12 -$3.03 $5.97 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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