Man, I have just been chomping at the bit to get on the side hustle bandwagon. I really like the idea of multiple sources of income, and I am no stranger to working 2 jobs to get some extra money coming in. My goal for investing is so I can quit my job, but that doesnt mean I wouldn’t be doing something to bring in money. Even though side hustles are getting a lot of attention these days are don’t think there is enough talk about all the pieces really work together.
Anyway, lets get on with it; first up is the Taxable. Last week’s HPQ call expired OTM so I just bought a new $26 call but since HPQ is in a decline this week I only collected $6. Really, I could have bought the $25.5 or even the $25 and still made money on this position, but there isn’t any other positions I have lined up so I don’t mind letting it ride and trying to get that extra growth from the position.
Over in the Options IRA OKE and KR expired ITM and were sold off, those were both calls so I did get some growth out of them. OKE had been in the account since last year and it had a return of $414.05 (5.18%) since the beginning of the year; only $90.05 was collected from options, $324 was from growth. KR was a buy-write from last week and ended up bringing in $154.67 (2.38%) total, $28.67 from options. Just in growth that’s $450, and that’s realized profits, those are sold and gone. The best part is I didn’t even consider growth when I wrote the title, the over $500 is just from the selling of options this week. And as far as selling options I have my first puts, IBM and HPQ. HPQ I sold a $25 put for $21.35 which is a 0.85% return on capital because I have to set aside $2500 in case I have to buy HPQ. That’s not bad, it comes out to be something like a 44.4% annualized return if my math is right (and I’m not saying it is). I sold a $128 put for IBM for $250.34 (1.95%) or a 101.7% annualized return. That is ridiculousness and something I couldn’t pass up. Altogether I collected $271.69 from selling options in the Options IRA this week looking ahead my calls on T and EPD, both ITM will be expiring this Friday so I’ll have even more buying power next week.
Lastly lets run through what I did in the Rollover IRA. PBCT and UNM both had calls expire ITM both of them were holdovers from last year and both of them still have options that expire in February as well. PBCT’s total return was $148.70 (10.62%) $41.70 from options, while UNM’s total return was $278.70 (11.15%) $72.70 from options. These numbers are not right. Those numbers represent total options income from both trades and need corrected. I will have to do that at a later date. Skipping ahead…MCY expired OTM and I went ahead and sold it off for $53.47 (numbers need corrected so no breakdown on that). I did that to free up capital to purchase 32 shares of IBM for $129.17 a share, bring my total price per share up to $120.65. I then sold a call on them for $249.34 and I used the left over money for a buy-write on ADM. My average cost was $52.81 a share and I collected $22.35 from the option. Together they brought in….$271.69. Yes, the exact same as the Options IRA. That brings my total premiums collected in the IRA to $543.38 or Over $500 in One Week.
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