More Income

Scheduling Note: My wife has taken the day off, my youngest daughter to Boston until tomorrow, so we’ll be doing a day trip today. Updates tonight may be late, depending upon when we return, wait for the email. Month end advisor summary and data may therefore go out tomorrow instead of tonight.


I’ve decided to make some moves on the option writing for income spreadsheet. On two positions SO and DLR we’ve captured the dividend which is the purpose of this strategy and had little to gain by holding our option positions. Therefore I’ve closed them out creating cash to do another.

OptionWrite Click Picture for full sized image, or go to the Google Spreadsheet. This project began on April 8 with the Lorillard position. A period of not quite one quarter or 3 months. On average we have returned a little over 5% on each trade. Annualizing each trade equals slightly over 31% on an annualized basis. Can we keep that up? Maybe but we have yet to reach a rough patch and there will be a rough patch or two coming sometime.

OK understanding all the pluses and minuses let’s add to our portfolio. With the closing trades we have but two positions, an REIT and a Food and Beverage Company. It’s becoming somewhat tough to find decent yielding stocks that have near term options with any kind of a premium.  Therefore a little change in strategy is required here, we’ll write further out options and check after ex-dividend whether to leave the call options open or not.

So to expand our portfolio this time I’d like to add a utility with a growing dividend over the years. One such utility is Duke Energy (DUK) ->  Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets. The Company manages a portfolio of natural gas and electric supply, delivery, and trading businesses in the United States and Latin America. Expected next ex-dividend date in mid-Aug.

DUK_Fund

August is fine for a put but maybe too close for a call to lose dividend.

DUK_Optons
We will have to follow this and perhaps after dividend close the options out, we will see.



Talking Points and Do You Need a Curved TV or Is It Just a Gimmick?; 

Friday Night Lights (Market Anthropology)
Why You Hate Work (NY Times)
Europe Has Wasted a Good Crisis (Naked Cap)
10-Year Annualized Equity Returns Remain Below Average (Horan)
How to Make a Smarter Minimum Wage (Atlantic)
Four myths about the Great War of 1914-1918 (Vox EU)
Sports & Investing: Why Strong Earnings Can Hurt Stock Prices (Investing Caffeine)
Weighing the Week Ahead: Economic Fireworks? (Dash of Insight)
The Rise of a the A**hole Sports Dad (And How to Avoid Turning into One) (GQ)
Tech IPOs, a Good Investment or Not? (Wealthfront)
How U.S. Courts Are Radically Upending International Finance (Foreign Affairs)
A Stream of Hot Air (Aleph)

Do You Need a Curved TV or Is It Just a Gimmick?

Have A Great Day!