575 Dollar Loss in XPO?

Hmmmm… not really. I sold a call option on XPO for 1$ and bought it back for 6.75$. At first glance it looks like i made that loss of 575$. 

But – i not only bought that option back. I rolled it out. That means i sold another call. One month in the future. For 7.1$. Strike: 95$.

So what can happen on expiration date?
1. XPO is above 95$. I receive 710$ and 100 XPO shares are sold for 95$. (The shares were booked to me throught a sold put for 90$ so i would have an additional profit of 500$)
2. XPO is below 95$. I receive 710$ and 100 XPO shares stay in my account. 

Definitely i would have a minimum profit of 135$ (710-575).

Last 4 trades

  1. Sold 1 FSLY Nov20´20 60 Put.  Received 105 $ premium. Fastly has lost more than 30% in 2 days. I would take 100 shares for 60$ if it is below the strike on 20th November. 
  2. Bought 200 ONEW
  3. 1 STOR Oct16´20 30 Call has expired. Received 40$ premium. 
  4. Bought 1 LRN Oct16´20 30 Put back. Received 28.67$ premium. If i hadn´t bought them back, the shares would have been booked to me. And i don´t want them. 

Example – how to collect option premiums

Instrument: XPO Logistics, Inc.

Reason: Why this one? When you look at the chart at the day i sold the Put Option it looks to me like XPO is forming a bottom. The second reason was that XPO was about to join the S&P Midcap 400 Index. It´s often the case that when a company joins an index, it will rise the next weeks/months.

1st Option:
Sold 1 XPO Apr18´19 45 Put. That means i sold a Put Option to someone which ends on 18th April 2019 at a 45$ Strike. (Mr. Someone has the right to sell 100 XPO stocks for 45$ on 18th April to me. I have the obligation to buy it from him. This makes only sense if the price on 18th April is below 45$).
More than 10 % lower than the price of the stock on this day.
Entered the trade on 11th March 2019 for 1$. Bought the Option back on 1st April 2019 for 0.1$.

2nd Option:
Sold 1 XPO May17´19 47.5 Put for 1.05$. Entered the trade on 1st April 2019. Bought it back on 2nd May 2019 for 0.1$.

3rd Option:
Sold 1 XPO Jun21´19 55 Put for 1$. Entered the trade on 2nd May 2019. Rolled the option out. So i bought it back with a loss and sold another Put with a lower strike and a further-dated expiration.

4th Option:
Sold 1 XPO Jul19´19 52.5 Put for 3.6$. Entered the trade on 28th May 2019. Bought it back on 16th July for 5 cents.

5th Option:
Sold it not immediately after i bought the fourth option back because of earnings on 1st August. One day after earnings (2nd August 2019) i sold 1 XPO Sep20´19 60 Put for 1.1$. Bought it back on 5th September for 22 cents.

6th Option:
Sold 1 XPO Oct18´19 62.5 Put for 1.1$. Bought it back on 10th October for 22 cents.

7th Option:
Sold 1 XPO Nov15´19 62.5 Put for 1.45$. Bought it back only 15 days later for 30 cents.

8th Option:
Earnings on monday (28th October) after market close. Probably i´ll sell another put on Tuesday. Sold it on 1st November for 1.15$. Bought it back for 22 cent.

9th Option:
Sold 1 XPO Dec20´19 77.5 Put for 0.7$. Bought it back for 0.14$.

10th Option:
Sold 1 XPO Jan17´20 72.5 Put for 0.8$. Bought it back for 0.15$.

11th Option:
Sold 1 XPO Feb21´20 70 Put for 1.05$. Bought it back for 0.2$ only 7 days later.

12th Option:
Waiting for 2 reasons: 1: Earnings in a few days. 2: Danger of slowdown because of the Coronavirus.
Sold 1 XPO Mar20´85 Put for 1.1$. Bought it back for 0.22$ 8 days later.

13th Option:
Sold 1 XPO Mar20´20 90 Put for 0.75. This time the option got assigned and i´ve now 100 stocks in my portfolio. The premium i kept, of course.

14th Option:
Now that i have the stocks in my portfolio, i can sell calls against it.
Sold 1 XPO Jun19´20 90 Call for 1.4. Bought it back for 0.3.

15th Option:
Sold 1 XPO Aug21´20 90 Call for 2.1. Bought it back for 0.2.

16th Option:
Sold 1 XPO Sep18´20 92.5 Call for 2.35. Bought it back for 0.3.

17th Option:
Sold 1 XPO Oct16´20 95 Call for 1.95. Bought it back for 0.3.

18th Option:
Sold 1 XPO Oct16´20 90 Call for 1. Rolled the option out. That means i bought it back for 6.75$

19th Option:
Sold 1 XPO Nov20´20 95 Call for 7.1.

XPO Logistics on the day i sold the first option:

RESULTS:

Collected 1st Option Premium: 88.61$

Collected 2nd Option Premium: 93.56$

Collected 3rd Option Premium: – 286.39$

Collected 4th Option Premium: 353.55$

Collected 5th Option Premium: 86.61$

Collected 6th Option Premium: 86.61$

Collected 7th Option Premium: 114.36$

Collected 8th Option Premium: 91.66$

Collected 9th Option Premium: 55.36$

Collected 10th Option Premium: 63.56$

Collected 11th Option Premium: 84.31$

Collected 12th Option Premium: 87.36$

Collected 13th Option Premium: 73.90$

Collected 14th Option Premium: 109.52$

Collected 15th Option Premium: 187.81$

Collected 16th Option Premium: 204.52$

Collected 17th Option Premium: 162.83$

Collected 18th Option Premium: -576.32$

Collected 19th Option Premium: ?

How to lose and have no loss in the end.

Confusing title? Let me explain: 

On 5th March i sold a put option on V.F. Corporation (VFC) for 1.05 $. 40 days later i had to buy it back for 5.25 $. That was a loss of 420 $. Well, in hindsight March was not the perfect time to sell this option but none of us have a crystal ball. 

Now one can accept the loss or figure something out. I did the second. 

So i again sold a put with a lower strike for 5.15 $. But VFC was not nice, the price has fallen further – and i had to buy it back for 5.9 $. Again a loss – this time 75 $

Once again i sold a put with a lower strike. This time for 5.2 $. Today i bought it back for 0.1 $. That was a 510 $ win. 

What i mean in this article is that if you choose a good stock, even if it temporarily goes down, in the end you will mostly reduce your initial loss by rolling your options forward and down. 

 

 

Lamar – Covered Calls and Dividend

Today i bought 200 LAMR and instantly sold 2 Calls to collect the premium. The ex-dividend day is 19th June and i will get 50 cent per share. 

What are the key data:

  • 100 $ dividend (200*0,5)
  • 2.140 $ option premium (200*10.7)
  • As long as the stock´s above 65 $ –> -1.830 $

So if the shares are not called away before the ex-dividend day i´ll receive 410 $ in 31 days. 
Even if they  get called away, i still get 310$. 
Requirement: The stock remains above 65 $.

Update 19th July: LAMR closed on Friday at 65.63$. 200 stocks have been called away, i got the premium and i already received the dividend. Outcome: 410$. 

Dividends and Option premiums at once?

Today i want to write about a trade in Intel which allows me not only to collect the dividend but also to collect an option premium. 

How? 

First you have to know the date when the stock has its ex-dividend day. You must have the stock in your portfolio on the day before this date. In the case of INTC this was the 5th May (ex-dividend day: 6th May). 

So i bought 300 INTC on 27th April for 58.96 each and sold at the same time 3 call options in the money (strike 56) for 3.73 each. Expiration time 15th May. 

What do i know on 27th April?

  • I know that i´ll receive 99 $ dividend (300*0.33).
  • I know that i receive 1.119 $ option premium (300*3.73).
  • I know that as long as the stock is above 56 $ on expiration day, the 300 stocks will be called away and i will lose 888 $ with the stocks. 

Overall income: 99 + 1.119888 = 330 $

Of course you have to consider a few things:

  • First – the stock can be called away early (before ex-dividend day). In this case you will receive „only“ 231 $ (1.119 – 888).
  • Second – the stock can fall below the strike price on expiration day. In this case the stock stays in your portfolio (and you can sell the next bunch of call options). You should implement this strategy only with stocks you want to keep in your portfolio anyway.  
  • And a stock that looks like this in the last 15 years and that has never suspended the dividend i personally want to have in my portfolio: 

So this was a short – not really in-deph-article about this strategy because i consider many other things: dividend yield, open interest at the strike, annualized return, next quarterly report… 

Good trades!

Update 16th May: Intel closed at 58.28$ yesterday. So the 300 stocks have been called away, i got the premium and i´ll receive the dividend on 1st June (that´s the pay date). Not bad for the only 19 days of this investment. 

Optionen, Aktien, Dividenden Monat Februar 2018

Ein sehr schwieriger Monat war er, dieser Februar. Ich möchte hier gar nicht erwähnen wie hoch meine Buchverluste an manchen Tagen waren. Am Ende kam allerdings ein anständiger Gewinn zusammen.

Ein paar Dinge sind dieses Monat anders als sonst weil ich immer wieder was neues ausprobiere:

Die Call Optionen auf VRX waren gekaufte Optionen weil ich auf einen Rebound spekuliert habe. Ging nicht auf.

Die 150 Aktien auf CCLP habe ich mir aufgrund eines Signals gekauft. Bei diesem Signal spielt zum Beispiel der ADX eine ziemliche Rolle.

Der Mördergewinn bei der SRCL Option hat keinen schönen Hintergrund. Das ist ein gekaufter Put den ich mir 1 Tag vor den Earnings gekauft habe um mich abzusichern. Ihr könnt euch vorstellen warum dieser Put so einen großen Gewinn abgeworfen hat…

Was?Wie lange? (Haltedauer in Tagen)Wieviel?
MAIN Dividende
19
HRL Dividende18.76
CCLP Dividende28.13
100 TVTY70113.89
CCLP (CSI Compressco LP)150 Aktien gekauft zu 5.7$/Aktie
KHC (Kraft Heinz Co)

100 Aktien eingebucht zu 75$/Aktie
GME (GameStop Corp.)100 Aktien eingebucht zu 18$/Aktie
SKT (Tanger Factory Outlet Centers)
100 Aktien eingebucht zu 25$/Aktie
O (Realty Income Corp)
100 Aktien eingebucht zu 52.5$/Aktie
BPL (Buckeye Partners LP)
100 Aktien eingebucht zu 55$/Aktie
CMP Mar16´18 72.5 Call273.57
TVTY Feb16´18 40 Call
15127.77
VRX Jan18´19 20 Call
72-349.59
KHC Feb16´18 75 Put4494.35
GME Feb02´18 18 Put2974.20
SKT Feb16´18 25 Put31119.35
O Feb16´18 52.5 Put3078.90
BPL Feb16´18 55 Put25138.90
TXN Mar02´18 103 Put3387.82
QQQ Mar16´18 155 Put21102.19
VRX Jan17´20 17 Call23-61.59
SRCL Mar16´18 70 Put1702.80
SUMME1368.45

Neuer Cash Secured Put auf L Brands

Ich habe heute einen Cash Secured Put auf LB aufgesetzt. Bei einem Kurssturz von 55 auf 45 Dollar und einer dementsprechend hohen Impliziten Volatilität kann man das durchaus wagen.

Strike: 40$
Laufzeit: 18.08.2017
Prämie: 1,10$
Impl. Volatilität: 77

Die Earnings sind allerdings am 16.08.2017. Vor dem Ende der Laufzeit. Also werde ich den Put wahrscheinlich vorher zurückkaufen. Ich hätte allerdings auch nicht allzuviel dagegen mir die Aktie bei 40$ einbuchen zu lassen. Bei einem Kurs von 40 hat die 6% Dividendenrendite. Nicht zu verachten.

Was habt ihr in letzter Zeit ver- oder gekauft?

Edit: 100 Aktien wurden mir zum Preis von 40$/Aktie eingebucht. Der Put brachte mir eine Prämie von 109.65 Dollar.

Gratis COT Daten

Aus aktuellem Anlass möchte ich hier ein wenig Werbung machen für die Seite www.timingcharts.com.

Shay Campbell – der Eigentümer dieser Seite – hat bis jetzt die Daten auf seiner Seite immer gratis zur Verfügung gestellt. Jetzt folgt ein grösserer Umbau auf seiner Seite und im Zuge dessen musste unter anderem der COT Index dran glauben. Dieser Index ist normalerweise nur in diversen kostenpflichtigen Chartprogrammen enthalten. Shay ruft nun zu einer einmaligen Spendenaktion auf um diese Funktionalität von einem externen Programmierer in die neuen Seiten eingliedern zu lassen, da er zur Zeit ziemlich überfordert ist.

Wer sich also nur im Ansatz für diesen herrlichen Index interessiert, könnte ja auf dieser Seite ein paar Dollar spenden: https://www.gofundme.com/timing-charts-cot.

Erklärung COT Index: Es geht hier um die Interpretation des Commitments of Traders Report. Und zwar werden die Netto-Short und die Netto-Longpositionen der aktuellen Woche mit den Werten der letzten drei Jahre verglichen. Damit erhält man einen Index, welcher uns den Grad des Optimismus als Verhältnis aus dem aktuellen Wert und den Werten der letzten drei Jahre angibt. Je höher der Index steht, desto mehr haben die Commercials gekauft (sprich – sie sind bullish). Und wenn der Index niedrig steht können wir annehmen dass sie den Markt unter negativen Vorzeichen betrachten.