In december most of the positions I had were related to Dutch construction companies as there was a positive sentiment as a major stockholder of a Dutch construction company announced the intention to acquire the shares It not owns yet.
I decided to take open a few small short put positions on Dutch construction companies Volkerwessels, Heijmans and Royal BAM Group to benefit from a positive sentiment regarding construction companies.
In december I realized €317,15 in profits regarding my short positions.
- Rolled 1x ABN P16.00 20DEC19
I rolled this option to ABN P16.00 17JAN20 and received €10 more premium by closing this position by buying back the option for €82 and opening the JAN20 position for €92 premium.
Timing of closing this position was slightly unlucky, because just a few days after rolling this position the stock price went up almost 4% going from a lot out the money to almost being in the money. ABN Amro closed at a price of €16,33 at expiration. The JAN20 postion to which I rolled this position also declined a lot to €20. So probably I will close this position profitable in JAN.
- Closed 2x AH P23.50 20DEC19 – €103,40 loss
Ahold Delhaize declined against the market. Where the general market went up after trade war tensions declined. I closed the position on a small uplift of Ahold Delhaize of over 2% with the intention to roll it to JAN20 after a correction. As the price of Ahold did stay on the same level I didn’t open this position again and took the loss.
- Expired 10x BAM P2.40 20DEC19 – €101,50 profit
In November I opened various positions regarding Dutch construction companies as I considerred the sentiment postive regarding construction companies. This due because a major shareholder of Volkerwessels announced the intention to place a bid on the shares it doesn’t own yet.
I started my position by selling 10 put options for €11 per contract. BAM Group closed at €2,68, well above the strike price and expired worthless. This resulted in a profit of €101,50.
- Expired 4x HEY P7.20 20DEC19 – €96,60 profit
In November I opened this position by selling 4 options for €25 per contract. Heijmans closed above the strike price and this position expired worthless. As a result I realized a profit of €96,60.
- Expired 3x KVW P20.00 20DEC19 – €222,45 profit
In november I shorted 3 different kind of put options series regarding Volkerwessels and the news that major stockholder Reggeborgh planned to bid €21,75 per stock.
On this news the stock price increased from around €18 to €21. As Reggeborgh was already owning almost 64% of the stocks I expected that a bid would get through and that the risk would be limited based on the price before the news in combination with the strike price and premium received.
On the 7th of November I sold 3 different puts with a strike of €20 but with different expiry dates. For december I shorted 3 puts with a €75 premium. On 12 November it was announced that an bid supported by the management would be done against a price of €22,20.
Based on this bid the premium of the 3 put series I shorted dropped to almost zero. The december puts expired worthless and resulted in a realized profit of €222,45.
I have still have short puts with expiry dates in JAN20 and MAR20 left in my portfolio which I probably will also keep until they expire worthless.
The total profit I made this year from shorting put options increased this month by €317,15 to €2.973,25.