Author: Erik

Option Expiration: November 2019

In november I basically closed my positions expiring in November early. As a result increasing stock prices in November I decided to buyback my November positions to realize the profit.

I also already closed a few positions expiring in December also to realize the profit. As a result of closing 6 positions I realized a total profit of €1.773,50. My total realized profit from writing options this year is now €2.656,10.

The 6 closed positions in November:

  • Closed 4x AGN P4.00 20DEC19 – €101,20 profit

    I opened this position in may for €35 per contract and now closed this position for €8 per contract.
  • Closed 10x AGN P3.90 15NOV19 – €123,00 profit

    This position was opened previous month against €17 per contract. I closed this position at €3 per contract.
  • Closed 2x ING P9.80 15NOV19 – €52,40 profit

    In October I rolled this position to November as it was in the money. On average I received €36 per contract and I closed this position against €4 per contract.
  • Closed 4x ING P9.00 19JUN20 – €433,20 profit

    I decided to close this position and not wait 8 more months for a few more percent of profit. I opened this position in December 2018 against €143 per contract and this month I closed the entire position against €33 per contract.
  • Closed 7x ING P11.00 20DEC19 – €618,10 profit

    This position I had for a long time marked as tricky, because it was deep in the money, because the shareprice of ING dropped from around €12 to €8 in August.

    Now the stock price of ING surged to well around €10,50, I decided to close this position.

    In September 2018 I started this position against €140 per contract and this month I closed the entire position against €50 per contract. I’m happy to take this profit and clos the position.
  • Closed 2x RD P25.00 20DEC19 – €445,60 profit

    This position I opened last year in November against an average price of €242,50 per contract. I closed this position this month against €18 per contract.

    I decided to buy back this december position as Shell had an ex-dividend planned on 14 november also and I don’t want this position in December to get into reroll zone.

I had a busy month this week in monitoring my option positions and closed many positions resulting in a record amount of realized profit which are all already invested into quality dividend stocks.

Purchase 48 shares Occidental Petroleum

For my purchase of this month I got inspiration from the dividend Bert’s October Dividend Income Summary. Normally I share many stocks on the dividend received list of other dividend bloggers, but in October there was not a single one company I shared with Bert.

This inspired me to take the companies from his list do some research about those companies and in the end I added Legett & Platt, Occidental Petroleum and Illinois Tool Works to my watchlist.

When selecting my potential buy for November, Occidental Petroleum was immediatelly scoring very high in my ranking model and I decided to place an order.

Occidental Petroleum is mainly scoring high in my ranking model based on their cashflow, yield and from being around their 52 weeks low.

On the otherhand I also deduct some ranking points in my model as Occidental is also having some higher than average risks such as possible short term issues related to integrating Anadarko, possible stock dillution due to the warrants given out to Berkshire Hathaway as part of a financing deal and maybe even a dividend reduction to fund debt reduction. Although the cashflow should be sufficient to continue the current dividend.

Occidental Petroleum is YTD down almost 40% and I consider this a good moment to start a position in Occidental Petroleum and I purchased 48 shares at $38,32.

With this purchase I add $151,68 to my yearly estimated dividend income. My yield on cost based on the current dividend of Occidental Petroleum is 8,25%.

October 2019 Dividend Report

October the month in which I have my birthday passed very fast. Just 2 more months left this year. October is one of my lowest dividend income months in a year. Only January and February are always scoring lower than October for me.

In October I received €228,69 in dividend. This is a growth of 192% compared to October 2018. Year to date October I received €4.061 in dividends. This is 122% above YTD October 2018.

11 companies paid me this month. Two series of preferred shares from Colony Capital where my biggest payer this month.

Besides dividend income I realized this month €113,15 in profit from writing put options. I only count closed or expired options as profit. For me information you can red my October Option Income Report.

Dividend Income – € 228,69

Colony Capital PREF H44,38
Anally Capital40,30
Altria Group25,93
Coresite Realty22,09
Colony Capital PREF I20,24
Bank of Nova Scotia19,61
AGNC Investment15,25
Coca Cola14,27
National General Holdings PREF O12,31
EPR Properties10,53
Brown-Forman B3,78

Transactions:

Dividend Changes:

  • none

2019 Target Status:

  • I’m at €13.200 out of €14.400 deposit target (91,7%)
  • I’m at €4.061,68 out of €3.500 dividend received target (116,0%)
  • I’m at €882,60 income from writing options
  • I’m at €2.940 in extra mortgage repayments

Sale 29 stocks National General Holdings Pref O

Today I sold 29 stocks from National General Holdings Pref O against a price of $25,05.

I bought this series of preferred stock from National General Holdings in March of this year against a price of $22,23. Based on this price the initial yield was 8,43%.

As the call date of these shares is April 2020 I also hoped to make another quick 12% if the shares would be called and redeemed against $25.

This week I decided I would sell the shares, because the current price is now above $25 and I’m happy with the capital appreciation and dividends received since the purchase in March.

In 7 months I made a profit of €117,65 based on dividend received and capital appreciation and after deduction of transaction costs. This is 18,0% so I’m happy to close this position.

The proceeds from this transaction I’m probably going to invest in another preferred stock.

September 2019 Dividend Report

In September I realized a dividend income of €537,79. This is 193% up from last year. 18 companies or ETF’s payed me in September. The 3 biggest payers for me in September are Washington Prime Group, Royal Dutch Shell and Macerich. The big raise basically comes for a huge part from a speculative investment in Washington Prime Group which.

This month I also did repay €120 extra on my mortgage above the regular monthly payments.

From closed or expired options I realized €309,50 in profits this month. For more information please read September Option Report.

Dividend Income – € 537,79

Washington Prime Group113,53
Royal Dutch Shell79,51
Macerich53,90
Enbridge50,43
Aegon40,5
Dominion Energy25,08
Taubman Centers21,61
Unilever18,47
HSBC18,07
Qualcomm16,98
AGNC Investment15,23
Bank of America14,81
Johnson & Johnson12,90
Think AEX UCITS ETF11,96
McDonalds11,59
Monmouth REIT11,58
Boeing11,08
EPR Properties10,56

Transactions:

Dividend Changes:

2019 Target Status:

  • I’m at €11.700 out of €14.400 deposit target (81,3%)
  • I’m at €3.832,82 out of €3.500 dividend received target (109,5%)
  • I’m at €769,45 income from writing options
  • I’m at €2.940 in extra mortgage repayments

Purchase 30 shares Monmouth REIT

Today I purchased 30 shares Monmouth REIT at a price of $14,41. I now own 105 shares with. With this purchase my average purchase price declined from $16,23 to $15,71.

At the moment Monmouth is paying a yearly dividend of $0,68 per share. This purchase of 30 shares will increase my yearly estimated dividend income with $20,40.

Since starting a position in Monmouth I received €92,37 in dividends.

Option Income: Expiration September 2019

Last Friday the September option expiration date was. In September I rolled 3 positions to October and I closed 2 positions. The trades I rolled were all 3 rolled for a higher price and did result in a higher potentiol option profit to be realized.

The 2 closed option potitions resulted in €309,50 profit after transaction costs. My total realized profit this year is now €769,45.

The following 2 trades where closed in September:
  • 3x ING P9.40 20SEP19: profit €105,20

    I started this position in August. I decided to buy back the options a few days before expiry date, because the price of bank stocks increased a lot in the days before I closed this position. I closed this positions to not risk the options getting in the money again on a market correction.
  • 1x RD P26.00 20SEP19: profit €204,30

    This is a position I started in november 2018 when the price of Royal Dutch declined from around €30 to €26. Today the price is almost the same as when I sold this option in November a year ago.

    3 days before the expiry date I decided to buy back the options. The oil price increased a lot in the weekend before expiry as a result of the drone attacks on the Saudi oil installations.

    After closing this position I sold a new mid-term option on Royal Dutch. I did short 1 put contract RD P26.00 20MAR20 for €156.
The following 3 trades I rolled to October:
  • 3x AGN P4.20 20SEP19 rolled to 3x AGN P4.20 18OKT19:

    I bought back the 3 contracts for €35,45 after deduction of transaction costs. I sold the 3 AGN P4.20 18OKT19 contracts for €37,45 income also after transaction costs.

    Aegon closed friday at €3,86 so this series is almost 9% in the money and I don’t expect this position to expire worthless. Probably I will roll this position in October again, but I will probably roll it to a series with a longer expiration date with a lower strike price.
  • 10x AGN P4.00 20SEP19 to 10x AGN P4.00 18OKT19:

    I bought back the 1o options for €171,50 and opened the October position for €231,50. Current share price of Aegon is €3,86 so my target is to have a small price increase of almost 4% in October so this position will expire worthless.
  • 2x ING P10.00 20SEP19 to 2x ING P10.00 18OKT19

    I bought back the 2 options expiring in September for €62,30 and opened the October position for €86,3.

    Current price of ING is €9,73 so I target on having this position expire worthless in October.