Entering text into the input field will update the search result below

More Detailed Performance Data - April 2015 Results

Oct. 26, 2015 4:02 PM ETED, APLP, FMX, INTC, MCD, STWD, T2 Comments
Richard Berger profile picture
Richard Berger's Blog
10.79K Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

As part of my effort to provide transparency and detail results, I provide below additional details for the April 2015 "Income From Covered Option Writing" subscription program results:

4/16/15 ED - Wrote 2 Puts 5/15/15 $60.00 @ $1.45 premium for Expired un-exercised.

Result: Boost income $290.00

Dividends to date: $000.00

Capital +/- $000.00

4/20/15 Bought 400 EXLP @ $25.62

Wrote Covered Calls- 4 X

11/10/15 expire: $28.00@ $1.20 $480.00

Dividends to date: $454.40

Unrealized capital gain(loss) to date: ($588.00)

Total Return to date: $346.00

4/21/15 Bought 100 FMX @ $93.78

Wrote 1 Covered Calls- 1 X

10/16/15 $100.00 @ $3.20 $320.00

Dividends to date: $ 74.00

Unrealized capital gain(loss) to date: $715.00

Total Return to date: $1109.00

4/17/15 Bought 300 INTC @ $32.40

Wrote 3 covered Calls- 3 X

10/16/15 $35.00 @ $0.90 $270.00

Dividends to date: $144.00

Unrealized capital gain(loss) to date: $702.00

Total Return to date: $1116.00

4/20/15 Bought 100 MCD @ $94.88

Wrote 1 Covered call- 1 X

6/19/15 $100.00 @ $0.92 $ 92.00

Dividends to date: $ 85.00

Unrealized capital gain(loss) to date: $ 120.00

Total Return to date: $ 297.00

4/5/15 SFL - Wrote 7 Puts 5/15/15 $15.00 @ $0.60 premium for expired un-exercised.

Result: Boost Income: $ 420.00

4/29/15 Bought 400 STWD @ $24.30

Wrote 4 covered calls 4 X -

6/19/15 $25.00 @ $0.24 $ 96.00

Dividends to date: $192.00

Unrealized capital gain(loss) to date: ($596.00)

Total Return to date: ($308.00)

4/16/15 T- Wrote 3 Puts 6/19/15 $32.00 @ $0.58

premium for expired un-exercised.

Boost Result: $ 174.00

Total Premium cash income for April 2015: $ 2142.00

Dividends to date from Apr activity $ 949.60

Unrealized gain(loss) to date for April: $ 353.00

Total Return to date from Apr activity: $ 3,444.00

As you can see, Income from Covered Option Writing enhances the returns for an income equity investor. The Dividends captured and the Unrealized gain/loss would be identical to that presented for any typical conservative income investor who purchased these securities at the time and is holding long term for dividend income.

Non-boost investors would have the $949.60 in dividends and the unrealized net $353.00 gain for a total return of $1,302.60 for this same April activity. The $2,142.00 bypassed premium gain is far more than the non-boost underlying income and capital appreciation itself, 165% more!

I will continue to provide this detail level for subsequent months as time permits me. (I am doing this manually without a spread sheet for tracking at this time).

Notes:

1. Results assume total target investment in each ticker is about $10,000 (cost of shares bought or of the option strike X 100 X number of contracts written).

2. Number of contracts targets to underweight each holding below for round lots below $10,000 total or just barely over $10,000 total per ticker.

3. Assumes Buy leg of Buy-write is at market value presented at time the article was written & published.

4. Assumes Option premiums are as presented and available at time the article was written & published.

5. Assumes no early exercise of options prior to expiration date.

6. Assumes every research presentation is acted upon and done with equal weight as described in notes 1 to 5 above.

7. All calculations ignore any taxes and transaction costs.

8. Other nuanced factors which may influence the actual results of an individual investor could be present and may have impacts not presented here.

Thank you for your continued interest in my program.

I am not a licensed securities dealer or advisor. The views here are solely my own and should not be considered or used for investment advice. As always, individuals should determine the suitability for their own situation and perform their own due diligence before making any investment.

Richard

Analyst's Disclosure: I am/we are long ED, FMX, INTC, MCD, SFX, STWD, T.

Generally, all my positions are hedged with covered options.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You