Good news from Friday options expiries - generated quite a bit of cash before the big selloff. This update is action around Friday option expiries in my other two portfolios. Next update will be next week to cover this week action.
Bought
Fireeye (FEYE): Cybersecurity. Exercised on a naked put at $16 vs closing price of $15.49. Naked puts written for $0.30 gives a breakeven of $15.70
Apache Corporation (APA): Oil producer. Exercised on a naked put at $30 vs closing price of $28.50. Naked puts written in February for $0.96 gives a breakeven of $29.04 - there are some from prior months that could be added in.
Huntington Bancshares Inc (HBAN): US Regional Bank. Exercised on a naked put at $14 vs closing price of $13.91. Naked puts written for $0.26 gives a breakeven of $13.74
Sold
Commerzbank (CBK.DE): German Bank. Assigned on covered call for a loss of 35% since May 2018. Income recovered was 1.72% - only recently started writing covered calls in this portfolio. 7% blended loss in another portfolio since January/September 2019. Income to date was 3.5% - not quite enough. I will buy back in both and keep writing.
iShares MSCI Spain Capped ETF (EWP). Spain Index. Assigned on covered call for a blended profit of 0.15% since October 2019/January 2020. Income from covered calls added another 0.87%. 0.52% profit in two weeks in another portfolio and 0.87% income.
Interactive Brokers Group, Inc (IBKR): US Brokerage. Assigned on covered call for a profit of 0.45% for 2 weeks. Income from covered calls added another 1.56%.
With Morgan Stanley taking over eTrade this leaves the field open for Interactive Brokers. The selloff gives a good chance to buy back.
Lennar Corporation (LEN): US Homebuilding. Assigned on covered call for a blended profit of 4.7% for 4 weeks. Income from covered call added another 0.56%.
Global X Social Media ETF (SOCL): Social Media. Assigned on covered call for a profit of 0.93% since July 2018. Income from covered call added another 0.96%. I added this to covered calls as I wanted the market to find the exit price - it did.
Slack Technologies, Inc (WORK): Cloud Computing. Assigned on covered call for a profit of 10.9% for 2 weeks. Income from covered calls added another 1.11%. Lucky call to add this stock before earnings which were a blowout.
ENGIE SA (ENGI.PA): French Utility. Assigned on covered call for a profit of 2.2% for 4 weeks. Income from covered calls added another 0.99%. I will replace this stock and keep writing.
Activision Blizzard (ATVI): Gaming. Assigned on covered call for a profit of 11% since November 2019. Income from covered calls added another 2.76%. Initially a Jim Cramer idea - he is holding.
JinkoSolar Holding Co (JKS): Solar Power. Assigned on covered call for a profit of 15% since September 2019. Income from covered calls added another 3.54%. I will add solar back in some form.
Square, Inc (SQ): Payments Technology. Assigned on covered call for a blended profit of 12% since June/August 2019. Income from covered calls added another 4.38%. I have been in an out of Square on covered call assignments.
Uber Technologies, Inc (UBER): Ride Sharing. Assigned on covered call for a profit of 7.6% since January 2020. Income from covered calls added another 2.72%. I will not buy this back as I am already exposed to Lyft (LYFT).
Expiring Options
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR): China Index. With price closing at $29.41 strike 31 call option expired - rolled up trade from last month. Price was moving right with the trade deal signing but fell over as the extent to the corona virus became clear. I remain positive long term on China but think stock holding will be a safer way to invest - not options.
Huntington Bancshares Inc (HBAN): US Regional Bank. With price closing at $13.91 strike 15 call option expired. I had chosen not to roll this up further as I knew I was going to get the stock assigned on a sold put.
Hedging Trades
Hedging trades on S&P500 (SPY), Nasdaq (QQQ) and Europe (VGK) all expired worthless. Ratio spread on SPY was cash neutral and on VGK the cost of a dinner for two. On QQQ, the conversion to a ratio spread would have worked if I had not chosen to buy back the 2nd sold put and let it run to expiry.
Income Trades
25 covered calls assigned out of 93 trades (all portfolios) at average premium for the completed month of 1.38% (to purchase price). Will update new covered calls in next update - was not able to watch market close this morning.
23 out of 29 naked puts expired in my favour (all portfolios). It is time to start a spreadsheet for these as they are becoming a relevant income source. That said, I will be toning down naked put writing while market is in selloff mood.
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search.
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers
February 21, 2020