I'm back after a 10 month hiatus. Work got extremely busy last year and I didn't have the time or energy to devote to my portfolio or this blog. I'm still busy at work but will try to find sometime to trade and post, hopefully monthly. It's very time consuming to post all the details of every trade and monthly returns, so going forward I'll only post a table of new positions as I enter them. I will not be posting followup trades or monthly returns. This will lessen the burden of maintaining this blog while hopefully still providing some useful information.
To make this portfolio easier to manage I've decided to focus on companies who've increased dividends for 10+ consecutive years. These are companies I'd like to own for the long term. To establish positions I'll sell Put options on these stocks, below Morningstar's Fair Value, where the Bid price is greater than or equal to the quarterly dividend. This will allow me to collect "synthetic" dividends every month until assigned, after which I'll hold the positions to collect the "real" dividends. This will require a lot less trading, since I'll only need to trade once a month to establish new positions if needed. If/when work gets less busy (wishful thinking) I'll revise this plan.
The following CSP positions were established today. All prices include IB commissions.
| Stock | Price | Type | Strike | EXPDT | DTE | Invested | Income | ROI | AROI |
|---|---|---|---|---|---|---|---|---|---|
| AMP | $79.15 | P | $75.00 | 2/19/2016 | 10 | $7,500.00 | $85.00 | 1.13% | 58.84% |
| COP | $33.57 | P | $28.00 | 2/19/2016 | 10 | $2,800.00 | $25.00 | 0.89% | 35.21% |
| GPS | $23.29 | P | $22.00 | 2/19/2016 | 10 | $2,200.00 | $27.00 | 1.23% | 49.62% |
| TIF | $62.17 | P | $59.00 | 2/19/2016 | 10 | $5,900.00 | $45.00 | 0.76% | 34.59% |
| VFC | $56.63 | P | $50.00 | 2/19/2016 | 10 | $5,000.00 | $35.00 | 0.70% | 30.59% |
| WSM | $52.11 | P | $50.00 | 2/19/2016 | 10 | $5,000.00 | $45.00 | 0.90% | 43.73% |
Definition of Terms
Price - Stock price when position was established.
Type - P=CSP (Cash Secured Put) and C=CC (Covered Call)
EXPDT - Expiration Date.
DTE - Days to expiration.
ROI - Return on Investment.
AROI - Annualized Return on Investment.
