I didn’t get to post Wednesday, I got home around 5:30am Wednesday and I had an errand to run at 3pm, so by the time I got some sleep and sat down to do this I was short on time. I thought I could get back around and finish it but I never did.I’ll post what I have from Wednesday but I’m not going to go back and try to finish it, I have too much to talk about today and…you guessed it, I’m short on time again. So much has happened so lets get into it.
I’m now an Options Junkie, 12 open options trades in the IRA, $310.85 (0.67%) in income added to the accounts because of it. Starting off the new year and my IRA has already gotten a job flipping burgers somewhere to help bring in money. I’m pretty convinced at this point that covered calls on dividend stocks is the way to go for me. I still haven’t had to get myself out of a bad drawdown yet. Staying on the Champions/Contenders list of stocks I think is going to help that. Only 1% of the list cut their dividends in 2020.
Okay, lets focus, I’m running around in circles in my mind. The reason I have so many options trades open is because I opened the Rollover IRA to sell Covered Calls and Buy-Writes.
$209.40 (0.45%) came from the Rollover account but half of that was for the 15th and half of that was for Feb. 19th. I’m going to be switching over to weekly options dividends in that account to smooth out weekly returns. Look for me talking a lot more about that in the future.
The remaining $101.45 came from the Options IRA. I also bumped it up a level so I could also write Cash Secured Puts. And by the looks of it I’ll be starting those next week. XOM and HPQ are ITM, OKE is currently OTM but really close, a few cents off. I’m guessing it will manage to come up just enough. Even if it doesn’t I’ll have around $6500 to write some puts against. Looking at total returns though, I might be doing Buy-Writes Instead. On HPQ I ended up with a return of $62.35 (2.49%) in 5 days, $14.35 in Options income and $48 in growth. XOM did better with a return of $126.35 (2.97%). I get that immediate options money, I also get the growth from the stock coming up and hitting my strike price.
Over in the Taxable the EPD option is ITM and it is the same story $56.00 (2.8%) total return. Its the first trading week in January and I have 3 options giving me between 2.5% to 3% returns. Now that’s just for the money used in that investment, but so far it is impressive and something I need to pay attention to this year.
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