Friday, August 30, 2013

SIL - New Position

A new CSP position was established today on Global X Silver Miners ETF (SIL). All prices include IB commissions.

This is the second position on SIL. The first position is a CC.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013SILCSP Margin UsedCSP 100 SIL @ 14.00 ($1,400.00) 
8/30/2013SILInitial Put OptionSTO 1 Sep13 14.00 Put @ 0.14  $14.11

Position Summary

Cost Basis($1,400.00)
Income Generated$14.11
Percent Income Generated1.01%
Annualized Income Generated17.52%
Net Profit If Closed$14.11
Percent Return If Closed1.01%
Annualized Return If Closed17.52%
Days Held to Expiration21 days

OXY - New Position

A new CSP position was established today on Occidental Petroleum (OXY). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases11
Fair Value Estimate$102.00
Target Buy Price$71.40
Target Margin of Safety30.00%
Actual Buy Price$85.00
Actual Margin of Safety16.67%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013OXYCSP Margin UsedCSP 100 OXY @ 85.00 ($8,500.00) 
8/30/2013OXYInitial Put OptionSTO 1 Sep13 85.00 Put @ 0.87  $86.93

Position Summary

Cost Basis($8,500.00)
Income Generated$86.93
Percent Income Generated1.02%
Annualized Income Generated17.78%
Net Profit If Closed$86.93
Percent Return If Closed1.02%
Annualized Return If Closed17.78%
Days Held to Expiration21 days

NUE - New Position

A new CSP position was established today on Nucor Corporation (NUE). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusChampion
Years of Consecutive Dividend Increases40
Fair Value Estimate$53.00
Target Buy Price$31.80
Target Margin of Safety40.00%
Actual Buy Price$44.00
Actual Margin of Safety16.98%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013NUECSP Margin UsedCSP 100 NUE @ 44.00 ($4,400.00) 
8/30/2013NUEInitial Put OptionSTO 1 Sep13 44.00 Put @ 0.44  $44.31

Position Summary

Cost Basis($4,400.00)
Income Generated$44.31
Percent Income Generated1.01%
Annualized Income Generated17.50%
Net Profit If Closed$44.31
Percent Return If Closed1.01%
Annualized Return If Closed17.50%
Days Held to Expiration21 days

NSC - New Position

A new CSP position was established today on Norfolk Southern Corporation (NSC). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases12
Fair Value Estimate$83.00
Target Buy Price$58.10
Target Margin of Safety30.00%
Actual Buy Price$70.00
Actual Margin of Safety15.66%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013NSCCSP Margin UsedCSP 100 NSC @ 70.00 ($7,000.00) 
8/30/2013NSCInitial Put OptionSTO 1 Sep13 70.00 Put @ 0.70  $69.63

Position Summary

Cost Basis($7,000.00)
Income Generated$69.63
Percent Income Generated0.99%
Annualized Income Generated17.29%
Net Profit If Closed$69.63
Percent Return If Closed0.99%
Annualized Return If Closed17.29%
Days Held to Expiration21 days

JCI - New Position

A new CSP position was established today on Johnson Controls (JCI). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusFrozen Angel
Years of Consecutive Dividend Increases36 of 37
Fair Value Estimate$45.00
Target Buy Price$31.50
Target Margin of Safety30.00%
Actual Buy Price$39.00
Actual Margin of Safety13.33%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013JCICSP Margin UsedCSP 100 JCI @ 39.00 ($3,900.00) 
8/30/2013JCIInitial Put OptionSTO 1 Sep13 39.00 Put @ 0.39  $38.93

Position Summary

Cost Basis($3,900.00)
Income Generated$38.93
Percent Income Generated1.00%
Annualized Income Generated17.35%
Net Profit If Closed$38.93
Percent Return If Closed1.00%
Annualized Return If Closed17.35%
Days Held to Expiration21 days

GDX - New Position

A new CSP position was established today on Market Vectors Gold Miners ETF (GDX). All prices include IB commissions.

This is the second position on GDX. The first position is a CC.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/30/2013GDXCSP Margin UsedCSP 100 GDX @ 25.00 ($2,500.00) 
8/30/2013GDXInitial Put OptionSTO 1 Sep13 25.00 Put @ 0.25  $24.93

Position Summary

Cost Basis($2,500.00)
Income Generated$24.93
Percent Income Generated1.00%
Annualized Income Generated17.33%
Net Profit If Closed$24.93
Percent Return If Closed1.00%
Annualized Return If Closed17.33%
Days Held to Expiration21 days

Tuesday, August 27, 2013

VTR - New Position

A new CSP position was established today on Ventas (VTR). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusNear Challenger
Years of Consecutive Dividend Increases4
Fair Value Estimate$70.00
Target Buy Price$49.00
Target Margin of Safety30.00%
Actual Buy Price$60.00
Actual Margin of Safety14.29%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/27/2013VTRCSP Margin UsedCSP 100 VTR @ 60.00 ($6,000.00) 
8/27/2013VTRInitial Put OptionSTO 1 Sep13 60.00 Put @ 0.60  $59.93

Position Summary

Cost Basis($6,000.00)
Income Generated$59.93
Percent Income Generated1.00%
Annualized Income Generated15.19%
Net Profit If Closed$59.93
Percent Return If Closed1.00%
Annualized Return If Closed15.19%
Days Held to Expiration24 days

ITC - New Position

A new CSP position was established today on ITC Holdings (ITC). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusChallenger
Years of Consecutive Dividend Increases8
Fair Value Estimate$98.00
Target Buy Price$78.40
Target Margin of Safety20.00%
Actual Buy Price$85.00
Actual Margin of Safety13.27%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/27/2013ITCCSP Margin UsedCSP 100 ITC @ 85.00 ($8,500.00) 
8/27/2013ITCInitial Put OptionSTO 1 Sep13 85.00 Put @ 0.96  $95.93

Position Summary

Cost Basis($8,500.00)
Income Generated$95.93
Percent Income Generated1.13%
Annualized Income Generated17.16%
Net Profit If Closed$95.93
Percent Return If Closed1.13%
Annualized Return If Closed17.16%
Days Held to Expiration24 days

HFC - New Position

A new CSP position was established today on HollyFrontier (HFC). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases19
Fair Value Estimate$53.00
Target Buy Price$26.50
Target Margin of Safety50.00%
Actual Buy Price$42.50
Actual Margin of Safety19.81%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/27/2013HFCCSP Margin UsedCSP 100 HFC @ 42.50 ($4,250.00) 
8/27/2013HFCInitial Put OptionSTO 1 Sep13 42.50 Put @ 0.66  $65.93

Position Summary

Cost Basis($4,250.00)
Income Generated$65.93
Percent Income Generated1.55%
Annualized Income Generated23.59%
Net Profit If Closed$65.93
Percent Return If Closed1.55%
Annualized Return If Closed23.59%
Days Held to Expiration24 days

BRCM - New Position

A new CSP position was established today on Broadcom (BRCM). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusNear Challenger
Years of Consecutive Dividend Increases4
Fair Value Estimate$35.00
Target Buy Price$21.00
Target Margin of Safety40.00%
Actual Buy Price$24.00
Actual Margin of Safety31.43%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/27/2013BRCMCSP Margin UsedCSP 100 BRCM @ 24.00 ($2,400.00) 
8/27/2013BRCMInitial Put OptionSTO 1 Sep13 24.00 Put @ 0.40  $40.48

Position Summary

Cost Basis($2,400.00)
Income Generated$40.48
Percent Income Generated1.69%
Annualized Income Generated25.65%
Net Profit If Closed$40.48
Percent Return If Closed1.69%
Annualized Return If Closed25.65%
Days Held to Expiration24 days

Tuesday, August 20, 2013

XEC - New Position

A new CSP position was established today on Cimarex Energy (XEC). All prices include IB commissions.

CriteriaValue
Dividend Champions Status Near Challenger
Years of Consecutive Dividend Increases4
Fair Value Estimate$100.00
Target Buy Price$60.00
Target Margin of Safety40.00%
Actual Buy Price$75.00
Actual Margin of Safety25.00%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013XECCSP Margin UsedCSP 100 XEC @ 75.00 ($7,500.00) 
8/20/2013XECInitial Put OptionSTO 1 Sep13 75.00 Put @ 1.19  $118.93

Position Summary

Cost Basis($7,500.00)
Income Generated$118.93
Percent Income Generated1.59%
Annualized Income Generated18.67%
Net Profit If Closed$118.93
Percent Return If Closed1.59%
Annualized Return If Closed18.67%
Days Held to Expiration31 days

USO - New Position

A new CSP position was established today on United States Oil ETF (USO). All prices include IB commissions.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013USOCSP Margin UsedCSP 100 USO @ 36.00 ($3,600.00) 
8/20/2013USOInitial Put OptionSTO 1 Sep13 36.00 Put @ 0.42  $42.25

Position Summary

Cost Basis($3,600.00)
Income Generated$42.25
Percent Income Generated1.17%
Annualized Income Generated13.82%
Net Profit If Closed$42.25
Percent Return If Closed1.17%
Annualized Return If Closed13.82%
Days Held to Expiration31 days

TBT - New Position

A new CSP position was established today on ProShares UltraShort 20+ Year Treasury ETF (TBT). All prices include IB commissions.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013TBTCSP Margin UsedCSP 100 TBT @ 75.00 ($7,500.00) 
8/20/2013TBTInitial Put OptionSTO 1 Sep13 75.00 Put @ 0.74  $73.93

Position Summary

Cost Basis($7,500.00)
Income Generated$73.93
Percent Income Generated0.99%
Annualized Income Generated11.61%
Net Profit If Closed$73.93
Percent Return If Closed0.99%
Annualized Return If Closed11.61%
Days Held to Expiration31 days

SVXY - New Position

A new CSP position was established today on ProShares Short VIX Short-Term Futures ETF (SVXY). All prices include IB commissions.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013SVXYCSP Margin UsedCSP 100 SVXY @ 76.00 ($7,600.00) 
8/20/2013SVXYInitial Put OptionSTO 1 Sep13 76.00 Put @ 0.90  $89.63

Position Summary

Cost Basis($7,600.00)
Income Generated$89.63
Percent Income Generated1.18%
Annualized Income Generated13.89%
Net Profit If Closed$89.63
Percent Return If Closed1.18%
Annualized Return If Closed13.89%
Days Held to Expiration31 days

MSFT - New Position

A new CSP position was established today on Microsoft Corp (MSFT). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases10
Fair Value Estimate$35.00
Target Buy Price$24.50
Target Margin of Safety30.00%
Actual Buy Price$30.00
Actual Margin of Safety14.29%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013MSFTCSP Margin UsedCSP 100 MSFT @ 30.00 ($3,000.00) 
8/20/2013MSFTInitial Put OptionSTO 1 Sep13 30.00 Put @ 0.33  $33.11

Position Summary

Cost Basis($3,000.00)
Income Generated$33.11
Percent Income Generated1.10%
Annualized Income Generated12.99%
Net Profit If Closed$33.11
Percent Return If Closed1.10%
Annualized Return If Closed12.99%
Days Held to Expiration31 days

EEM - New Position

A new CSP position was established today on iShares MSCI Emerging Markets Index ETF(EEM). All prices include IB commissions.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013EEMCSP Margin UsedCSP 100 EEM @ 36.50 ($3,650.00) 
8/20/2013EEMInitial Put OptionSTO 1 Sep13 36.50 Put @ 0.38  $38.25

Position Summary

Cost Basis($3,650.00)
Income Generated$38.25
Percent Income Generated1.05%
Annualized Income Generated12.34%
Net Profit If Closed$38.25
Percent Return If Closed1.05%
Annualized Return If Closed12.34%
Days Held to Expiration31 days

CHK - New Position

A new CSP position was established today on Chesapeake Energy (CHK). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusFrozen Angel
Years of Consecutive Dividend Increases8 of 9
Fair Value Estimate$31.00
Target Buy Price$18.60
Target Margin of Safety40.00%
Actual Buy Price$24.00
Actual Margin of Safety22.58%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013CHKCSP Margin UsedCSP 100 CHK @ 24.00 ($2,400.00) 
8/20/2013CHKInitial Put OptionSTO 1 Sep13 24.00 Put @ 0.39  $38.93

Position Summary

Cost Basis($2,400.00)
Income Generated$38.93
Percent Income Generated1.62%
Annualized Income Generated19.10%
Net Profit If Closed$38.93
Percent Return If Closed1.62%
Annualized Return If Closed19.10%
Days Held to Expiration31 days

BEN - New Position

A new CSP position was established today on Franklin Resources (BEN). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusChampion
Years of Consecutive Dividend Increases32
Fair Value Estimate$58.00
Target Buy Price$40.60
Target Margin of Safety30.00%
Actual Buy Price$45.00
Actual Margin of Safety22.41%

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/20/2013BENCSP Margin UsedCSP 100 BEN @ 45.00 ($4,500.00) 
8/20/2013BENInitial Put OptionSTO 1 Sep13 45.00 Put @ 0.59  $59.11

Position Summary

Cost Basis($4,500.00)
Income Generated$59.11
Percent Income Generated1.31%
Annualized Income Generated15.47%
Net Profit If Closed$59.11
Percent Return If Closed1.31%
Annualized Return If Closed15.47%
Days Held to Expiration31 days

Saturday, August 17, 2013

Returns as of Aug 2013

This monthly report includes an Options Expiration Report, Performance Summary, Income Statement, and Account Value Statement. All the data is obtained from the Interactive Brokers (IB) Activity Statement.

Options Expiration Report for Aug 2013

I established 10 new CSP positions this month on ALTR, BHP, GDX, KO, MSFT, NUE, QCOM, SIL, SVXY, & TBT.

I had 16 positions for Aug expiration:

  • 3 uncovered stock positions (symbols).
  • 3 CC positions - 2 expired (EXPD & WTW), 1 rolled (TEVA).
  • 10 CSP positions - 1 assigned (KO), 9 expired (ALTR, BHP, GDX, MSFT, NUE, QCOM, SIL, SVXY, & TBT).

I'm currently 12% invested and 88% in cash, with 6 open positions:

  • 5 uncovered stock positions (BHP, EXPD, GDX, SIL, & WTW).
  • 1 CC positions (TEVA).
  • 0 CSP positions.

Performance Summary

The primary objective is to generate $10,000-$20,000 of income per year, which is 5-10% of the paid-in capital of $200,000. The secondary objective is to increase the account value by the amount of income generated each year.

Income Results

Reporting PeriodPaid-In CapitalIncomePercent Return
This Expiration$200,000.00$522.730.26%
Year-to-Date 2013$200,000.00$3,225.441.61%
Fiscal 2012$200,000.00$7,226.513.61%
Fiscal 2011$200,000.00$12,902.956.45%
Fiscal 2010$200,000.00$22,115.5511.06%
Fiscal 2009$200,000.00$20,299.8110.15%
Fiscal 2008*$200,000.00($41,782.82)-20.89%
Fiscal 2007$150,000.00$5,769.293.85%
Fiscal 2006*$150,000.00$20,787.5013.86%
Fiscal 2005 (May-Dec)$100,000.00$7,840.287.84%
Total May 2005-Present$200,000.00$58,384.5129.19%
Annualized May 2005-Present  3.54%

Account Value Results

Reporting PeriodStarting BalanceEnding BalanceGain or LossPercent Return
This Expiration$251,935.78$252,457.40$521.620.21%
Year-to-Date 2013$252,304.27$252,457.40$153.130.06%
Fiscal 2012$241,968.56$252,304.27$10,335.714.27%
Fiscal 2011$235,603.57$241,968.56$6,364.992.70%
Fiscal 2010$218,610.69$235,603.57$16,992.887.77%
Fiscal 2009$187,257.83$218,610.69$31,352.8616.74%
Fiscal 2008*$236,676.52$187,257.83($49,418.69)-20.88%
Fiscal 2007$181,185.77$186,676.52$5,490.753.03%
Fiscal 2006*$157,659.27$181,185.77$23,526.5014.92%
Fiscal 2005 (May-Dec)$100,000.00$107,659.27$7,659.277.66%
Total May 2005-Present$200,000.00$252,457.40$52,457.4026.23%
Annualized May 2005-Present   3.18%

*Added $50,000 to the account in 2006 & 2008

Financial Statement for Aug 2013

Income Statement8/16/2013
  
Commissions($12.41)
Dividends$0.00
Broker Interest Paid and Received$0.00
Net Trades (Sales)$579.00
Net Trades (Purchase)($4,042.00)
Other Fees($1.86)
Payment In Lieu of Dividends$0.00
Withholding Tax$0.00
Net Income ($3,477.27)
  
Stocks Sold$0.00
Stocks Purchased($4,000.00)
Changes to Net Income$4,000.00
  
Paid-in Capital$200,000.00
Total Income$522.73
Percent Income Generated0.26%
  
Account Value Statement8/16/2013
  
Cash$225,684.51
Stock$26,838.00
Options($89.26)
Interest Accruals$0.00
Dividend Accruals$24.15
Total Account Value$252,457.40
  
Net Account Value at Beginning of Period$251,935.78
Net Account Value at End of Period$252,457.40
Total Change in Account Value$521.62
Percent Change in Account Value0.21%
  

NOTE: Returns are calculated on a fiscal basis, not on a calendar month/year basis. Monthly returns are from one options expiration to the next. Yearly returns are from Dec options expiration to Dec options expiration of the following year.

TBT - Closed

The ProShares UltraShort 20+ Year Treasury (TBT) Aug13 72.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$7,200.00
Net Profit$58.25
Percent Return0.81%
Annualized Return16.41%
Days Held to Expiration18 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/29/2013TBTCSP Margin UsedCSP 100 TBT @ 72.00 ($7,200.00) 
7/29/2013TBTInitial Put OptionSTO 1 Aug13 72.00 Put @ 0.58Expired $58.25
8/16/2013TBTCSP Margin ReturnedCSP 100 TBT @ -72.00  $7,200.00
8/16/2013TBT Net Cost/Profit-Loss ($7,200.00)$58.25
DTE18 Percent Profit-Loss/Annualized 0.81%16.41%

SVXY - Closed

The ProShares Short VIX Short-Term Futures (SVXY) Aug13 80.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$8,000.00
Net Profit$49.63
Percent Return0.62%
Annualized Return12.58%
Days Held to Expiration18 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/29/2013SVXYCSP Margin UsedCSP 100 SVXY @ 80.00 ($8,000.00) 
7/29/2013SVXYInitial Put OptionSTO 1 Aug13 80.00 Put @ 0.50Expired $49.63
8/16/2013SVXYCSP Margin ReturnedCSP 100 SVXY @ -80.00  $8,000.00
8/16/2013SVXY Net Cost/Profit-Loss ($8,000.00)$49.63
DTE18 Percent Profit-Loss/Annualized 0.62%12.58%

SIL - Closed

The Global X Silver Miners ETF (SIL) Aug13 13.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$1,300.00
Net Profit$24.11
Percent Return1.85%
Annualized Return37.61%
Days Held to Expiration18 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/29/2013SILCSP Margin UsedCSP 100 SIL @ 13.00 ($1,300.00) 
7/29/2013SILInitial Put OptionSTO 1 Aug13 13.00 Put @ 0.24Expired $24.11
8/16/2013SILCSP Margin ReturnedCSP 100 SIL @ -13.00  $1,300.00
8/16/2013SIL Net Cost/Profit-Loss ($1,300.00)$24.11
DTE18 Percent Profit-Loss/Annualized 1.85%37.61%

QCOM - Closed

The Qualcomm (QCOM) Aug13 62.50 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$6,250.00
Net Profit$28.93
Percent Return0.46%
Annualized Return10.56%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013QCOMCSP Margin UsedCSP 100 QCOM @ 62.50 ($6,250.00) 
7/31/2013QCOMInitial Put OptionSTO 1 Aug13 62.50 Put @ 0.29Expired $28.93
8/16/2013QCOMCSP Margin ReturnedCSP 100 QCOM @ -62.50  $6,250.00
8/16/2013QCOM Net Cost/Profit-Loss ($6,250.00)$28.93
DTE16 Percent Profit-Loss/Annualized 0.46%10.56%

NUE - Closed

The Nucor Corporation (NUE) Aug13 45.00 Put expired and the position was closed. All prices include IB commissions.

Closed Position Summary

Cost Basis$4,500.00
Net Profit$24.25
Percent Return0.54%
Annualized Return12.29%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013NUECSP Margin UsedCSP 100 NUE @ 45.00 ($4,500.00) 
7/31/2013NUEInitial Put OptionSTO 1 Aug13 45.00 Put @ 0.24Expired $24.25
8/16/2013NUECSP Margin ReturnedCSP 100 NUE @ -45.00  $4,500.00
8/16/2013NUE Net Cost/Profit-Loss ($4,500.00)$24.25
DTE16 Percent Profit-Loss/Annualized 0.54%12.29%

MSFT - Closed

The Microsoft (MSFT) Aug13 31.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$3,100.00
Net Profit$25.25
Percent Return0.81%
Annualized Return18.58%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013MSFTCSP Margin UsedCSP 100 MSFT @ 31.00 ($3,100.00) 
7/31/2013MSFTInitial Put OptionSTO 1 Aug13 31.00 Put @ 0.25Expired $25.25
8/16/2013MSFTCSP Margin ReturnedCSP 100 MSFT @ -31.00  $3,100.00
8/16/2013MSFT Net Cost/Profit-Loss ($3,100.00)$25.25
DTE16 Percent Profit-Loss/Annualized 0.81%18.58%

GDX - Closed

The Market Vectors Gold Miners (GDX) Aug13 24.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$2,400.00
Net Profit$15.93
Percent Return0.66%
Annualized Return15.14%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013GDXCSP Margin UsedCSP 100 GDX @ 24.00 ($2,400.00) 
7/31/2013GDXInitial Put OptionSTO 1 Aug13 24.00 Put @ 0.16Expired $15.93
8/16/2013GDXCSP Margin ReturnedCSP 100 GDX @ -24.00  $2,400.00
8/16/2013GDX Net Cost/Profit-Loss ($2,400.00)$15.93
DTE16 Percent Profit-Loss/Annualized 0.66%15.14%

BHP - Closed

The BHP Billiton Ltd. (BHP) Aug13 55.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$5,500.00
Net Profit$26.93
Percent Return0.49%
Annualized Return11.17%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013BHPCSP Margin UsedCSP 100 BHP @ 55.00 ($5,500.00) 
7/31/2013BHPInitial Put OptionSTO 1 Aug13 55.00 Put @ 0.27Expired $26.93
8/16/2013BHPCSP Margin ReturnedCSP 100 BHP @ -55.00  $5,500.00
8/16/2013BHP Net Cost/Profit-Loss ($5,500.00)$26.93
DTE16 Percent Profit-Loss/Annualized 0.49%11.17%

ALTR - Closed

The Altera Corp (ALTR) Aug13 34.00 Put expired and the position was closed. All prices include IB commissions.

Position Summary

Cost Basis$3,400.00
Net Profit$19.63
Percent Return0.58%
Annualized Return13.17%
Days Held to Expiration16 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
7/31/2013ALTRCSP Margin UsedCSP 100 ALTR @ 34.00 ($3,400.00) 
7/31/2013ALTRInitial Put OptionSTO 1 Aug13 34.00 Put @ 0.20Expired $19.63
8/16/2013ALTRCSP Margin ReturnedCSP 100 ALTR @ -34.00  $3,400.00
8/16/2013ALTR Net Cost/Profit-Loss ($3,400.00)$19.63
DTE16 Percent Profit-Loss/Annualized 0.58%13.17%

Friday, August 16, 2013

TEVA - Adjustment

The following adjustment was made yesterday & today on Teva Pharmaceutical Industries Ltd (TEVA). All prices include IB commissions.

TEVA Ex-Dividend date was today, 8/16. Yesterday my Aug 40 Call was ITM with little to no time value left, making it a candidate for early exercise. So, just before the market close, I bought back the call to avoid assignment so I could collect the dividend. Then I waited until today to sell another call, and chose the Sep 40 Call, which was ITM.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases13
Fair Value Estimate$48.00*
Target Buy Price$33.60
Target Margin of Safety30.00%
Actual Buy Price$40.00
Actual Margin of Safety16.67%

*Fair Value was lowered from $58 to $48 since inception which lowered my 31.03% Margin of Safety to 16.67%.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/15/2013TEVABuy BackBTC 1 Aug13 40.00 Call @ -0.43  ($42.69)
8/16/2013TEVARoll OutSTO 1 Sep13 40.00 Call @ 0.91  $90.93

Current Position Summary

Cost Basis($4,000.00)
Income Generated$337.94
Percent Income Generated8.45%
Annualized Income Generated5.64%
Net Profit If Closed$337.94
Percent Return If Closed8.45%
Annualized Return If Closed5.64%
Days Held to Expiration547 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
3/22/2012TEVACSP Margin UsedCSP 100 TEVA @ 40.00 ($4,000.00) 
3/22/2012TEVAInitial Put OptionSTO 1 May12 40.00 Put @ 0.51Exercised $50.97
5/18/2012TEVACSP Margin ReturnedCSP 100 TEVA @ -40.00 $4,000.00 
5/18/2012TEVAStock AssignedEX 1 May12 40.00 Put @ -40.00 ($4,000.00) 
6/25/2012TEVAContinued TradeSTO 1 Jul12 42.50 Call @ 0.19Expired $19.27
7/27/2012TEVAContinued TradeSTO 1 Sep12 45.00 Call @ 0.25Expired $25.24
9/4/2012TEVADividend ReceivedSTO 100 Dividend @ 0.25  $24.80
9/4/2012TEVAWitholding TaxTAX 1 Withholding Tax @ -0.04  ($3.97)
11/19/2012TEVAContinued TradeSTO 1 Dec12 40.00 Call @ 0.44Expired $44.24
12/3/2012TEVADividend ReceivedSTO 100 Dividend @ 0.26  $25.52
12/3/2012TEVAWitholding TaxTAX 1 Withholding Tax @ -0.05  ($5.28)
3/6/2013TEVAContinued TradeSTO 1 Apr13 40.00 Call @ 0.59Expired $59.16
6/3/2013TEVADividend ReceivedDIV 100 Dividend @ 0.32  $31.55
6/3/2013TEVAWitholding TaxTAX 1 Withholding Tax @ -0.05  ($4.73)
8/1/2013TEVAContinued TradeSTO 1 Aug13 40.00 Call @ 0.23Closed $22.93
8/15/2013TEVABuy BackBTC 1 Aug13 40.00 Call @ -0.43  ($42.69)
8/16/2013TEVARoll OutSTO 1 Sep13 40.00 Call @ 0.91  $90.93
9/20/2013TEVA Totals ($4,000.00)$337.94
DTE547 Percent Income/Annualized 8.45%5.64%

Tuesday, August 6, 2013

EXPD - Adjustment

The following adjustment was made today on Expeditors International (EXPD). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases18
Fair Value Estimate$47.00*
Target Buy Price$32.90
Target Margin of Safety30.00%
Actual Buy Price$42.50
Actual Margin of Safety9.57%

*Fair Value was lowered from $51 to $47 since inception which lowered my 16.67% Margin of Safety to 9.57%.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/16/2013EXPD Totals ($4,250.00)$200.74

Current Position Summary

Cost Basis($4,250.00)
Income Generated$200.74
Percent Income Generated4.72%
Annualized Income Generated8.49%
Net Profit If Closed$200.74
Percent Return If Closed4.72%
Annualized Return If Closed8.49%
Days Held to Expiration203 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
1/25/2013EXPDCSP Margin UsedCSP 100 EXPD @ 42.50 ($4,250.00) 
1/25/2013EXPDInitial Put OptionSTO 1 Mar13 42.50 Put @ 0.91Expired $91.11
3/15/2013EXPDCSP Margin ReturnedCSP 100 EXPD @ -42.50 $4,250.00 
3/15/2013EXPDStock AssignedEX 1 Mar13 42.50 Put @ -42.50 ($4,250.00) 
6/17/2013EXPDDividend ReceivedDIV 100 Dividend @ 0.30  $30.00
8/6/2013EXPDContinued TradeSTO 1 Aug13 42.50 Call @ 0.80  $79.63
8/16/2013EXPD Totals ($4,250.00)$200.74
DTE203 Percent Income/Annualized 4.72%8.49%

Thursday, August 1, 2013

WTW - Adjustment

The following adjustment was made today on Weight Watchers (WTW). All prices include IB commissions.

I had the opportunity this morning to exit this trade when WTW was trading between $47.50 and $48.00. A couple hours later the price dropped below my purchase price of $47.50, but still above my adjusted cost basis of $46. I checked the Aug call options and saw that the Aug 52.50 Call had a bid of $0.65, which is 1.36% of my $47.50 purchase price, and it provided an extra 10.52% return if called. Not bad for a 16 day trade. However, with earnings due after the close, this was a gamble. I could sell WTW before the close for a slight gain and avoid the earnings announcement, or sell the Aug 52.50 Call, which gives the stock some room to move up if earnings are good. I chose the later.

As it turned out, WTW beat analyst estimates, but revenue declined, profit forecast was cut, and the CEO resigned. The shares declined about 15% in after-hours trading and is now at $40.10. Obviously I would have been better off selling before the close and taken whatever profit I had, and then decide if I want to get back in after earnings. Now I'll review the earnings transcripts and M* analyst report, when they becomes available, to see if I want to continue holding WTW.

CriteriaValue
Fair Value Estimate$50.00
Target Buy Price$25.00
Target Margin of Safety50.00%
Actual Buy Price$47.50
Actual Margin of Safety5.00%

*Fair Value was lowered from $70 to $50 since inception which lowered my 32.14% Margin of Safety to 5.00%.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/16/2013WTW Totals ($4,750.00)$146.54

Current Position Summary

Cost Basis($4,750.00)
Income Generated$146.54
Percent Income Generated3.09%
Annualized Income Generated5.49%
Net Profit If Closed$646.54
Percent Return If Closed13.61%
Annualized Return If Closed24.23%
Days Held to Expiration205 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
1/23/2013WTWCSP Margin UsedCSP 100 WTW @ 47.50 ($4,750.00) 
1/23/2013WTWInitial Put OptionSTO 1 Feb13 47.50 Put @ 0.64Exercised $64.11
2/15/2013WTWCSP Margin ReturnedCSP 100 WTW @ -47.50 $4,750.00 
2/15/2013WTWStock AssignedEX 1 Feb13 47.50 Put @ -47.50 ($4,750.00) 
4/12/2013WTWDividend ReceivedDIV 100 Dividend @ 0.18  $17.50
8/1/2013WTWContinued TradeSTO 1 Aug13 52.50 Call @ 0.65  $64.93
8/16/2013WTW Totals ($4,750.00)$146.54
DTE205 Percent Income/Annualized 3.09%5.49%

TEVA - Adjustment

The following adjustment was made today on Teva Pharmaceutical Industries Ltd (TEVA). All prices include IB commissions.

CriteriaValue
Dividend Champions StatusContender
Years of Consecutive Dividend Increases13
Fair Value Estimate$48.00*
Target Buy Price$33.60
Target Margin of Safety30.00%
Actual Buy Price$40.00
Actual Margin of Safety16.67%

*Fair Value was lowered from $58 to $48 since inception which lowered my 31.03% Margin of Safety to 16.67%.

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
8/16/2013TEVA Totals ($4,000.00)$289.70

Current Position Summary

Cost Basis($4,000.00)
Income Generated$289.70
Percent Income Generated7.24%
Annualized Income Generated5.16%
Net Profit If Closed$289.70
Percent Return If Closed7.24%
Annualized Return If Closed5.16%
Days Held to Expiration512 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
3/22/2012TEVACSP Margin UsedCSP 100 TEVA @ 40.00 ($4,000.00) 
3/22/2012TEVAInitial Put OptionSTO 1 May12 40.00 Put @ 0.51Exercised $50.97
5/18/2012TEVACSP Margin ReturnedCSP 100 TEVA @ -40.00 $4,000.00 
5/18/2012TEVAStock AssignedEX 1 May12 40.00 Put @ -40.00 ($4,000.00) 
6/25/2012TEVAContinued TradeSTO 1 Jul12 42.50 Call @ 0.19Expired $19.27
7/27/2012TEVAContinued TradeSTO 1 Sep12 45.00 Call @ 0.25Expired $25.24
9/4/2012TEVADividend ReceivedSTO 100 Dividend @ 0.25  $24.80
9/4/2012TEVAWitholding TaxTAX 1 Withholding Tax @ -0.04  ($3.97)
11/19/2012TEVAContinued TradeSTO 1 Dec12 40.00 Call @ 0.44Expired $44.24
12/3/2012TEVADividend ReceivedSTO 100 Dividend @ 0.26  $25.52
12/3/2012TEVAWitholding TaxTAX 1 Withholding Tax @ -0.05  ($5.28)
3/6/2013TEVAContinued TradeSTO 1 Apr13 40.00 Call @ 0.59Expired $59.16
6/3/2013TEVADividend ReceivedDIV 100 Dividend @ 0.32  $31.55
6/3/2013TEVAWitholding TaxTAX 1 Withholding Tax @ -0.05  ($4.73)
8/1/2013TEVAContinued TradeSTO 1 Aug13 40.00 Call @ 0.23  $22.93
8/16/2013TEVA Totals ($4,000.00)$289.70
DTE512 Percent Income/Annualized 7.24%5.16%