Closing short Iberdrola put december 6,75

In july I sold 2 December puts on Iberdrola shares with an excercise price of €6,75. The stock price of Iberdrola at that time was €6,87. For selling the 2 puts I received 0,26 per share so €52 in total. After transaction costs the received premium was €49.

If I would be assigned the net purchase price of the shares would have been €6,50

Today I decided to close this position. The stock price of Iberdrola today was €6,60 and I bought back the 2 put options for €0,22 per share so €44 euro in total. After transaction costs this is €47.

Volatility of the Iberdrola shares increased slightly last few months so I plan to sell 2 januari €6,50 puts if next few days the stock prices will decline slightly. For €0,20 per share I plan to open this position again. If assigned in January the net purchase price will be €6,31 including transaction fee’s.

Purchase 53 shares Omega Healthcare

Today I bought 53 shares Omega Healthcare at a price of $27,05

At the moment Omega Healthcare is paying a quarterly dividend of $0,65. The expected yield on cost is 9,61%. With this purchase I expect to add $137,80 / €115,43 in yearly dividends.

The share price dropped from over $32 to $27 dollar due to Omega Healthcare reporting some issues with 2 out of the 77 tenants.

October 2017 Dividend Report

October was a slow month in dividend income, because I not have shares in many companies with a payment date in October. So I only received dividend from 4 companies.

USD dividends ~ $12,10 / €10,39
CoreSite Realty $6,30
Brown-Forman $3,65
Wisdomtree Smallcap Dividend Fund $2,15

EUR Dividends ~ €15,40
Wereldhave €15,40

A total of €25,79

News: Ryanair Holdings PLC Q2 results

Ryanair Holdings published their half year results todays. The highlights of the half year figures are:

  • Sales +7%
  • Profit after tax +11%
  • Customers +11%
  • Earnings per share +16%
  • Competitors Air Berlin, Monarchy and Alitalia banktrupt
  • Full year profit guidance unchanged at €1.4b – €1.45b
  • €1.018b share buyback in 2017

Long positions pay out, eventually

The Irrelevant Investor has an interesting read about the percentage of time with negative returns.

This graph is showing that in the long run, most often, the stock market goes up and it’s profitable to go long in stocks. On the otherhand there is also a graph showing that when stocks are going down, they often go down a lot.

For me as stock investor the expectation that in the long run shares are a good investment is not knew, but especially the graph showing the percentage decline in the years that stocks did go down is telling me I should think about a guideline to follow whenever stocks are for example over 30% down.

Maybe this is a good time to write a long term put option or to buy a call option to cash in on lower stock exchange prices. At least at this moment it’s not urgent to think about this strategy, because the exchanges are still up.

It gives me some time to do the numbers and write down some rules for myself regarding option strategies to set up after stock prices declined. Writing down a strategy in advance always makes it easier for me to do solid investing instead of doing something without exactly knowing the risks.

Purchase of 100 shares Kas Bank

Today I bought 100 shares Kas Bank at a price of €9,956 per share.

Kas Bank is a small bank listed at Euronext Amsterdam. Kas Bank is a custody, clearing en settlement bank. Kas Bank is focussing entirely on wholesale securities services to professionals. At this moment Kas Bank has 450 billion euro under administration.

Kas Bank is a small bank and has a market capitalization of approximately 150 million.

Kas Bank is paying a yearly dividend of €0,64 per share. The yield is 6,4%. With the purchase of the 100 Kas Bank shares I add €64 in yearly dividends to my portfolio.