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TGIF, And Yes, That's A Lotta Pocket Change

|About: Johnson & Johnson (JNJ), Includes: AMZA, O, UPS, WPC
Summary

JNJ Options expire today.

O Options expire today.

UPS Options expire today.

WPC Options expire today.

So here's what was on tap for 7/19/2020:

JNJ: ($22,004.34)

O: ($13,371.88)

UPS: ($21,562.94) WPC: ($12,463.13) For a total of $69,402.29 dollars, or 1,388,045.80 nickels or 6,940,229.00 pennies.

I might step in front of a steamroller once a month for that kinda payday. I mean how fast do they roll?

                         How it works in real life on my trading desk

Some discussion.

Let's take a look at those payouts compared to the yearly dividends while I'm waiting on the opening bell...... 

JNJ dividend = $0.95 X 4 = $3.80 X 7800 shares = $29,640/year. I guess that's OK, but I just made almost that in one month. I think I'll keep doing it.

O dividend - hey look - I just got it!

= $0.2265/month X 12 = $42,944.40/year. Nice, but ~$13K X 12 is ~$156,000.00/year. I think I'll keep doing it.

UPS dividend = $0.96 X 4 = $3.84 X 11,000 shares = $42,240.00/year. Nice but $21,562.94 PER MONTH is way better. Did I mention I sold $100 strike Calls on the whole position out 1 year for a $109,298.39 credit the day I bought the shares? Dammit. Even I can't see over that stack of pennies.

WPC dividend = $1.034 X 4 = $4.136 X 13,000 shares (if I had them) = ~$53,768, but I do not have them yet. ~$12,463.13 X 12 = $149,557.56/year though. Maybe I'll use that premium to buy the shares I do not have yet.

So what happened today?

WPC closed at $83.84 so the $80.00 Put options expired worthless to the buyer and I get to keep the Premium. Will sell those again Monday.

UPS closed at $103.31 so the $97.00 Put options expired worthless to the buyer and I get to keep the Premium. Will sell those again Monday. 

O closed at $68.74 so the $67.50 Put options expired worthless to the buyer and I get to keep the Premium. Will sell those again Monday.

JNJ was more entertaining since it "tanked" today, and closed at $130.31, (-$1.76) so I had to roll the Puts out as I watched the $134.00 Calls expire. I'll sell the Calls again on Monday, while the Puts get to be revisited later:

$134's

Net credit: $1,013.05

$132's

Net credit: $4,213.20

Net share cost now $133.21

In other news, I decided to roll AMZA into the BB20 portfolio as I already have a bunch, but I bought some more this week as the Xdiv is basically today, so now it is a full position, or would be had I added correctly. I'll need to figure all of that out over the weekend. Sooooo many $6.00 Calls to sell there, so few takers. Maybe Iran will help out with that?

YRMV

Disclosure: I am/we are long AMZA, BX, GPC, HD, JNJ, MO, NLY, O, PG, SKT, T, UPS, UVXY, WPC.