Sunday, 29 November 2015

November 2015 Portfolio

Month of November

The month of November! Although I have been waiting for this day to come, it saddens me to realise that all good things come to an end. The course which I had started back in March has already come to an end. On the last day, many of my batch-mates were very emotional and I as well, although I did not show it. That was also the reason I had not posted last week as I was rushing the last portion of the course for submission. That being said, I decided to ride on the momentum of curiosity and continue for my degree. I am still in the process of checking out the different university which offers my course and the price.



Stocks 

I have been selling options for about 2 to 3 months now. And so far, it looks to be holding the account. Although I was assigned to buy the stock, I went on to sell call contracts on that position. When you have 100 shares of a stock, you can choose to hold it or sell it. I chose the 3rd option which was to sell a contract on it while holding to the stock until someone wants to buy them from me (through the exercising of option). That’s also the reason why you can see that the cost price of the GILD is at such a weird number. It is because the option premium that I received offsets the purchase price of the actual stock itself when the option if assigned.


Net Asset Value

December 31, 2014
November 27, 2015


Total
Long
Short
Total
Change
Cash
3,840.72
0
-1330.73
-1,330.73
-5,171.44
Stock
7,429.46
10,800.00
0
10,800.00
3,370.54
Options
0
0
0
0
0
Interest Accruals
0
0
0
0
0
Total
11,270.18
10,800.00
-1330.73
9,469.27
-1,800.90

Time Weighted Rate of Return
-15.98%

Open Positions
Symbol
Quantity
Cost Price
Cost Basis
Close Price
Value
Unrealized P/L
Equity and Index Options
GILD
100
105.2779504
10,527.8
108
10,800.00
272.2
Total

10,527.8

10,800.00
272.2

Here are the contracts which I have done since 25th Aug. It’s kind of like getting a weekly dividend without owning a stock. But it is essential you know what to do if the option is exercised. Last month all the contracts expired. This month, I was assigned because the price dropped to a level below my strike price. So I have change to part 2 of the strategy which is to sell a covered call for a higher premium. Take note of how the contracts look after the assignment. So effectively I made an extra $337.43 since last posting based on this strategy. And as of this writing, I am still holding on to GILD shares which means I can continue to sell calls to supplement the income for next week. Yippie!

Previous Positions
Symbol
Quantity
T. Price
C. Price
Proceeds
Comm/Fee
Realized P/L
Equity and Index Options
AAPL 04SEP15 90.0 P
-1
0.5
0.99
50
-1.1
48.9
AAPL 18SEP15 80.0 P
-1
0.55
0.965
55
-1.1
53.9
AAPL 25SEP15 110.0 P
-1
0.96
0.9
96
-1.1
94.9
AAPL 02OCT15 110.0 P
-1
0.8
0.985
80
-1.1
78.9
AAPL 09OCT15 105.0 P
-1
0.43
0.2199
43
-1.09
41.91
NFLX 23OCT15 93.0 P
-1
0.97
0.7306
97
-1.1
95.9
AAPL 30OCT15 110.0 P
-1
0.71
0.6976
71
-1.1
69.9
AAPL 06NOV15 115.0 P
-1
0.64
0.3238
64
-1.1
63.21
GILD 13NOV15 106.0 P
-1
0.73
0.5056
73
-0.8
Assigned
GILD 20NOV15 107.0 C
-1
0.5
0.4066
50
-0.79
49.21
GILD 27NOV15 108.0 C
-1
0.6
0.3093
97
-1.1
59.21
Total 
 776
-11.48
655.94


Dividends

No dividends collected this month.

12/02/2015
AAPL(US0378331005) CASH Dividend 0.47000000 USD per Share (Ordinary Dividend)
17.86
12/02/2015
AAPL(US0378331005) CASH Dividend 0.47000000 USD per Share - US Tax
-5.36
4/6/2015
ALK(US0116591092) CASH Dividend 0.20000000 USD per Share (Ordinary Dividend)
10.60
4/6/2015
ALK(US0116591092) CASH Dividend 0.20000000 USD per Share - US Tax
-3.18
Total Dividend 2015
$19.92


Options on Futures 

Okay, this month was crappy. The natural gas market keeps dropping and I have already made losses on it. A method I tried to use to offset this position was to roll over the position to the next month. Unfortunately I was stubborn in thinking that I could time the market and thinking that the NG market was quite low, I decided to continue to hold on to the rolled over position. It was a bad judgment call and I did not follow my rules. For that, you will see the result of the trade in the next few months. Actually you can already tell from the Cash and Sweep that a portion of the account has been lost through that trade. If the new position expires without a hitch, I would have lost $760 on that trade itself because of the above reason.

Sometimes I just wonder if I should stick to the basics of stock options. I realize I could better manage my risk and follow my rules much easier than futures options. Nonetheless, I will still continue and be more mindful of my positions. As of now, it looks like where I started from when I just started more than a year ago which means I have to take only 1 position at a time. After the current few contracts which I already have expires.

The net effect of October was positive. Although there will be some changes next month or so as I am expecting my mistake to affect the position of the account. I still have contracts for E-mini S&P and Natural Gas set to expire in the next 1-2 months as of this writing.

Contracts Expired

Jan 2015
$802.50
($1402.5 - $525 + $225 - $300)
Feb 2015
$1,187.50
($1725 - $537.5)
Mar 2015
$1,502.50
($612.5 + $650 + $240)
Apr 2015
$433.00
($265 + [$192 - $185] + $161)
May 2015
$1,066.00
([$470 - $20] + [$280 - $10] + [$111 x 2] + $124)
Jun 2015

$689.00

($420 + $150 + $135 + $300 + $380 + $54 + $56 + ($240 - $300) +
($57 - $123) + ($420 - $880) + ($220 - $440)
Jul 2015
-$1,237.50
($300 + $315.5 + $112.5 + $112.5 - $500 - $468.75 - $456.25 + $30 –
$880 + $70 + $5 + $92.5 + $42.5 - $10)
Aug 2015
$475.00
($140 + $300 + $170 + $75 + $150 - $500 + $480 + $372.5 + $110 +
$140 + $130 + $300 - $2062.5 + $750 + $340 - $420)
Sep 2015
-$4,682.50
($360 - $3925 - $680 - $1470 + $300 + $20 + $562.5 + $330 + $275 +
$30 + $130 + $45)
Oct 2015
$470.00
($200 + $1170 - $1080 + $360 - $180)
Nov 2015
$90.00
(-$330+$260-($270+$400)-($390+$420))
End 2015
$795.50



Total Invested Capital
$10,000.00
Starting Capital of 2015
$10,670.00
Cash and Sweep
$10,275.04
Total Gain/Loss YTD
$795.50

7.46%




(Based on realized gains/loss)

Investing Wolf 
Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. 

2 comments:

  1. Hi,

    Which US brokerage do you use? The commission for option trading looks cheap! Thanks in advance

    ReplyDelete
    Replies
    1. Hi aspiringentrepreneur,

      If you are looking at the top account, it is with Interactive broker.

      Delete