February 2018
High-Yield Trade with Starbucks (SBUX)
Trade Type: CoveredCall
Opened: February 9, 2018
Closed: February 23, 2018
Result: My 100 shares of SBUX were called away at $54 per share for a $139.40 profit. This trade worked out to a 2.6% total return in 14 days, which is a 67.7% annualized yield.
January 2018
High-Yield Trade with Qualcomm (QCOM)
Trade Type: Covered Call
Opened: November 14, 2017
Closed: January 19, 2018
Result: My 100 shares of QCOM were called away at $67.50 per share for a $437.45 profit. This trade worked out to a 6.7% total return in 66 days, which is a 37.0% annualized yield.
High-Yield Trade with Williams-Sonoma (WSM)
Trade Type: Covered Call
Opened: March 8, 2017
Closed: January 19, 2018
Result: My 100 shares of WSM were called away at $50 per share for a $599.34 profit. This trade worked out to a 12.3% total return in 317 days, which is a 14.2% annualized yield.
High-Yield Trade with J.M. Smucker (SJM)
Trade Type: Covered Call
Opened: November 21, 2017
Closed: January 19, 2018
Result: My 100 shares of SJM were called away at $110 per share for a $744.39 profit. This trade worked out to a 6.0% total return in 60 days, which is a 43.4% annualized yield.
High-Yield Trade with Nike (NKE)
Trade Type: Covered Call
Opened: November 21, 2017
Closed: January 19, 2018
Result: My 100 shares of NKE were called away at $55 per share for a $601.45 profit. This trade worked out to a 11.2% total return in 60 days, which is a 69.2% annualized yield.
High-Yield Trade with Nike (NKE)
Trade Type: Covered Call
Opened: November 16, 2017
Closed: January 19, 2018
Result: My 100 shares of NKE were called away at $55 per share for a $454.45 profit. This trade worked out to a 8.5% total return in 64 days, which is a 48.3% annualized yield.
December 2017
High-Yield Trade with AT&T (T)
Trade Type: Covered Call
Opened: November 13, 2017
Closed: December 15, 2017
Result: My 400 shares of T were called away at $35 per share for a $494.99 profit. This trade worked out to a 3.6% total return in 32 days, which is a 41.2% annualized yield.
High-Yield Trade with Kroger (KR)
Trade Type: Covered Call
Opened: November 6, 2017
Closed: December 15, 2017
Result: My 400 shares of KR were called away at $22 per share for a $547.11 profit. This trade worked out to a 6.4% total return in 39 days, which is a 59.8% annualized yield.
High-Yield Trade with Kimberly-Clark (KMB)
Trade Type: Covered Call
Opened: October 30, 2017
Closed: December 6, 2017 (called away early)
Result: My 100 shares of KMB were called away at $115 per share for a $423.13 profit. This trade worked out to a 3.8% total return in 37 days, which is a 37.3% annualized yield.
November 2017
High-Yield Trade with General Mills (GIS)
Trade Type: Covered Call
Opened: October 16, 2017
Closed: November 17, 2017
Result: My 200 shares of GIS were called away at $52.50 per share for a $308.71 profit. This trade worked out to a 3.0% total return in 32 days, which is a 34.1% annualized yield.
High-Yield Trade with PepsiCo (PEP)
Trade Type: Covered Call
Opened: October 6, 2017
Closed: November 17, 2017
Result: My 100 shares of PEP were called away at $110 per share for a $184.40 profit. This trade worked out to a 1.7% total return in 42 days, which is a 12.1% annualized yield.
High-Yield Trade with Starbucks (SBUX)
Trade Type: Covered Call
Opened: October 23, 2017
Closed: November 15, 2017 (called away early)
Result: My 100 shares of SBUX were called away at $55 per share for a $267.45 profit. This trade worked out to a 5.0% total return in 23 days, which is a 79.5% annualized yield.
October 2017
High-Yield Trade with CVS Health (CVS)
Trade Type: Covered Call
Opened: September 25, 2017
Closed: October 27, 2017
Result: My contract to sell 100 shares of CVS Health at $80.00 per share expired worthless for a total profit of $167.34. This trade worked out to a 2.1% yield in 32 days, which equates to a 23.9% annualized yield. With the stock trading below my purchase price of $79.79 at expiration, I’ll wait until shares climb closer to my purchase price before selling another round of covered calls. In the meantime, I’m happy collecting CVS Health’s growing dividend.
High-Yield Trade with Intel (INTC)
Trade Type: Covered Call
Opened: May 30, 2017
Closed: October 20, 2017
Result: My 200 shares of INTC were called away at $36.00 per share for a $341.56 profit. This trade worked out to a 4.7% total return in 143 days, which is a 12.1% annualized yield.
High-Yield Trade with Starbucks (SBUX)
Trade Type: Covered Call
Opened: August 9, 2017
Closed: October 20, 2017
Result: My contract to sell 100 shares of SBUX at $55.00 per share expired worthless for a total profit of $85.35. This trade worked out to a 1.6% yield in 72 days, which equates to an 8.1% annualized yield. With the stock trading above my purchase price of $53.42 at expiration, I’ll look to sell another round of covered calls immediately.
High-Yield Trade with J.M. Smucker Company (SJM)
Trade Type: Covered Call
Opened: September 15, 2017
Closed: October 20, 2017
Result: My contract to sell 100 shares of SJM at $110.00 per share expired worthless for a total profit of $139.35. This trade worked out to a 1.3% yield in 35 days, which equates to a 13.4% annualized yield. With the stock trading below my purchase price of $108.65 at expiration, I’ll wait until shares climb closer to my purchase price before selling another round of covered calls. In the meantime, I’m happy collecting Smucker’s growing dividend.
High-Yield Trade with Kroger (KR)
Trade Type: Covered Call
Opened: September 8, 2017
Closed: October 20, 2017
Result: My contract to sell 400 shares of KR at $22.00 per share expired worthless for a total profit of $292.27. This trade worked out to a 3.4% yield in 42 days, which equates to a 29.7% annualized yield. With the stock trading below my purchase price of $21.43 at expiration, I’ll wait until shares climb closer to my purchase price before selling another round of covered calls. In the meantime, I’m happy collecting Kroger’s growing dividend.
September 2017
High-Yield Trade with Nike (NKE)
Trade Type: Covered Call
Opened: August 23, 2017
Closed: September 29, 2017
Result: My contract to sell 200 shares of NKE at $55.00 per share expired worthless for a total profit of $221.66. This trade worked out to a 2.1% yield in 37 days, which equates to a 20.4% annualized yield. With the stock trading below my purchase price of $53.74 at expiration, I’ll wait until shares climb closer to my purchase price before selling another round of covered calls. In the meantime, I’m happy collecting Nike’s growing dividend.
High-Yield Trade with Cisco (CSCO)
Trade Type: Covered Call
Opened: September 1, 2017
Closed: September 29, 2017
Result: My 400 shares of CSCO were called away at $32.50 per share for a $263.32 profit. This trade worked out to a 2.0% total return in 28 days, which is a 26.7% annualized yield.
High-Yield Trade with CVS Health (CVS)
Trade Type: Covered Call
Opened: August 11, 2017
Closed: September 23, 2017
Result: My contract to sell 100 shares of CVS at $80.00 per share expired worthless for a total profit of $149.35. This trade worked out to a 1.9% yield in 42 days, which equates to a 16.3% annualized yield. With the stock trading near my purchase price of $79.79 at expiration, I’ll look for immediate opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting CVS’ growing dividend.
High-Yield Trade with Lowe’s (LOW)
Trade Type: Covered Call
Opened: August 17, 2017
Closed: September 22, 2017
Result: My 100 shares of LOW were called away at $74.50 per share for a $252.60 profit. This trade worked out to a 3.4% total return in 36 days, which is a 34.4% annualized yield.
High-Yield Trade with Visa (V)
Trade Type: Covered Call
Opened: March 17, 2017
Closed: September 15, 2017
Result: My 100 shares of V were called away at $90.00 per share for a $454.39 profit. This trade worked out to a 5.0% total return in 180 days, which is a 10.2% annualized yield.
August 2017
“10% Trade” with VF Corp. (VFC)
Trade Type: Covered Call
Opened: January 6, 2017
Closed: August 18, 2017
Result: My 100 shares of VFC were called away at $55.00 per share for a $491.10 profit. This trade worked out to a 9.2% total return in 7.5 months, which is a 15.0% annualized yield.
“10% Trade” with Nike (NKE)
Trade Type: Covered Call
Opened: June 27, 2017
Closed: August 4, 2017
Result: My 200 shares of NKE were called away at $54.00 per share for a $469.46 profit. This trade worked out to a 4.5% total return in 38 days, which is a 42.8% annualized yield.
July 2017
“10% Trade” with Apple (AAPL)
Trade Type: Covered Call
Opened: February 7, 2017
Closed: July 21, 2017
Result: My 100 shares of AAPL were called away at $135.00 per share for a $1,001.24 profit. This trade worked out to a 7.7% total return in 163 days, which is a 17.3% annualized yield.
June 2017
“10% Trade” with Exxon-Mobil
Trade Type: Covered Call
Opened: April 26, 2017
Closed: June 16, 2017
Result: My 100 shares of XOM were called away at $82.50 per share for a $207.21 profit. This trade worked out to a 2.5% total return in 53 days, which is a 18.2% annualized yield.
May 2017
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: February 17, 2017
Closed: May 19, 2017
Result: My 100 shares of MSFT were called away at $65.00 per share for a $250.25 profit. This trade worked out to a 3.9% total return in 91 days, which is a 15.6% annualized yield.
“10% Trade” with Intel (INTC)
Trade Type: Covered Call
Opened: February 22, 2017
Closed: May 19, 2017
Result: My contract to sell 200 shares of INTC at $37.00 per share expired worthless for a total profit of $141.25. This trade worked out to a 2.3% yield in 86 days, which equates to a 9.9% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to my purchase price of $36.02 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Intel’s growing dividend.
April 2017
“10% Trade” with Exxon Mobil (XOM)
Trade Type: Covered Call
Opened: February 24, 2017
Closed: April 21, 2017
Result: My contract to sell 100 shares of XOM at $82.50 per share expired worthless for a total profit of $141.25. This trade worked out to a 1.7% yield in 56 days, which equates to a 11.3% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to my purchase price of $81.53 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Exxon Mobil’s growing dividend.
“10% Trade” with CVS Health (CVS)
Trade Type: Covered Call
Opened: February 21, 2017
Closed: April 21, 2017
Result: My contract to sell 100 shares of CVS at $80.00 per share expired worthless for a total profit of $200.25. This trade worked out to a 2.5% yield in 59 days, which equates to a 15.5% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to my purchase price of $79.79 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting CVS Health’s growing dividend.
February 2017
“10% Trade” with Qualcomm (QCOM)
Trade Type: Covered Call
Opened: December 30, 2016
Closed: February 17, 2017
Result: My contract to sell 100 shares of QCOM at $67.50 per share expired worthless for a total profit of $158.55. This trade worked out to a 2.4% yield in 49 days, which equates to an 18.1% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to my purchase price of $65.37 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Qualcomm’s growing dividend.
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: December 2, 2016
Closed: February 17, 2017
Result: My 200 shares of KO were called away at $40.00 per share for a $204.92 profit. This trade worked out to a 2.5% total return in 77 days, which is a 12.1% annualized yield.
“10% Trade” with Procter & Gamble (PG)
Trade Type: Covered Call
Opened: December 16, 2016
Closed: February 17, 2017
Result: My 100 shares of PG were called away at $85.00 per share for a $195.10 profit. This trade worked out to a 2.3% total return in 63 days, which is a 13.4% annualized yield.
September 2016
“10% Trade” with Tiffany & Co. (TIF)
Trade Type: Covered Call
Opened: August 29, 2016
Closed: September 19, 2016
Result: My 200 shares of TIF were called away at $65.00 per share for a $706.22 profit. This trade worked out to a 5.6% total return in 49 days, which is a 41.6% annualized yield.
August 2016
“10% Trade” with Euro STOXX 50 ETF (FEZ)
Trade Type: Covered Call
Opened: June 24, 2016
Closed: August 19, 2016
Result: My 100 shares of FEZ were called away at $31.00 per share for a $144.06 profit. This trade worked out to a 4.7% total return in 56 days, which is a 30.8% annualized yield.
July 2016
“10% Trade” with Target (TGT)
Trade Type: Covered Call
Opened: June 15, 2016
Closed: July 22, 2016
Result: My 100 shares of TGT were called away at $68.00 per share for a $177.06 profit. This trade worked out to a 2.6% total return in 37 days, which is a 25.8% annualized yield.
“10% Trade” with Microsoft (MSFT)
Trade Type: Cash-Secured Put
Opened: May 2, 2016
Closed: July 15, 2016
Result: My contract to purchase 100 shares of MSFT at $48.00 per share expired worthless for a $109.25 profit. This trade worked out to a 2.3% total return in 74 days, which is an 11.2% annualized yield.
May 2016
“10% Trade” with Chevron (CVX)
Trade Type: Covered Call
Opened: March 4, 2016
Closed: May 20, 2016
Result: My 100 shares of CVX were called away at $92.50 per share for a $373.06 profit. This trade worked out to a 4.1% total return in 77 days, which is a 19.5% annualized yield.
February 2016
“10% Trade” with Target (TGT)
Trade Type: Covered Call
Opened: February 22, 2016
Closed: February 26, 2016
Result: My 100 shares of TGT were called away at $71.50 per share for a $256.06 profit. This trade worked out to a 3.6% total return in four days, which is a 329.2% annualized yield.
January 2016
“10% Trade” with Target (TGT)
Trade Type: Covered Call
Opened: November 20, 2015
Closed: January 15, 2016
Result: My contract to sell 100 shares of TGT at $72.50 per share expired worthless for a total profit of $203.25. This trade worked out to a 2.9% yield in 56 days, which equates to an 18.7% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to $71.00 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Target’s growing dividend.
December 2015
“10% Trade” with Disney (DIS)
Trade Type: Covered Call
Opened: October 12, 2015
Closed: December 18, 2015
Result: My contract to sell 100 shares of DIS at $110 per share expired worthless for a total profit of $233.25. This trade worked out to a 2.1% yield in 67 days, which equates to an 11.7% annualized yield. With the stock trading below my purchase price at expiration, I’ll continue to hold shares until they rise closer to $110.00 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Disney’s growing dividend.
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: October 9, 2015
Closed: December 18, 2015
Result: My 200 shares of MSFT were called away at $48 per share for a $333.76 profit. This trade worked out to a 3.5% total return in 70 days, which is an 18.1% annualized yield.
November 2015
“10% Trade” with Chevron (CVX)
Trade Type: Covered Call
Opened: October 14, 2015
Closed: November 27, 2015
Result: My contract to sell 100 shares of CVX at $91.00 per share expired worthless for a total profit of $274.25. This trade worked out to a 3.0% yield in 44 days, which equates to a 25.1% annualized yield. With the stock trading just below my purchase price at expiration, I’ll continue to hold shares until they rise closer to $91.00 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Chevron’s hefty dividend.
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: October 7, 2015
Closed: November 20, 2015
Result: My 300 shares of KO were called away at $41 per share for a $513.32 profit. This trade worked out to a 4.2% total return in 44 days, which is a 35.1% annualized yield.
October 2015
“10% Trade” with McDonald’s (MCD)
Trade Type: Covered Call
Opened: August 4, 2015
Closed: October 16, 2015
Result: My 100 shares of MCD were called away at $100 per share for a $284.11 profit. This trade worked out to a 2.8% total return in 73 days, which is a 14.2% annualized yield.
September 2015
“10% Trade” with Disney (DIS)
Trade Type: Covered Call
Opened: August 7, 2015
Closed: September 18, 2015
Result: My contract to sell 100 shares of DIS at $110.00 per share expired worthless for a total profit of $262.30. This trade worked out to a 2.4% yield in 42 days, which equates to a 21.0% annualized yield. With the stock trading at $102.84 at expiration, I’ll continue to hold shares until they rise closer to $109.00 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Disney’s growing dividend.
August 2015
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: July 10, 2015
Closed: August 21, 2015
Result: My contract to sell 300 shares of KO at $41.00 per share expired worthless for a total profit of $208.67. This trade worked out to a 1.7% total return in 42 days, which is a 15.0% annualized yield. With the stock trading at $39.53 at expiration, I’ll continue to hold shares until they rise closer to $41.00 per share. At that point I’ll look for opportunities to sell another round of covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Coke’s dividend.
July 2015
“10% Trade” with Chevron (CVX)
Trade Type: Covered Call
Opened: July 24, 2015
Closed: July 31, 2015
Result: My contract to sell 100 shares of CVX at $91.00 per share expired worthless for a total profit of $121.25. This trade worked out to a 1.3% total return in seven days, which is a 69.8% annualized yield. With the stock trading at $88.48 at expiration, I’ll continue to hold shares until they rise closer to $91.00 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Chevron’s dividend.
“10% Trade” with Apple (AAPL)
Trade Type: Covered Call
Opened: July 21, 2015
Closed: July 31, 2015
Result: My contract to sell 100 shares of AAPL at $131.00 per share expired worthless for a total profit of $325.30. This trade worked out to a 2.5% total return in 10 days, which is a 91.4% annualized yield. With the stock trading at $121.30 at expiration, I’ll continue to hold shares until they rise closer to $131.00 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Apple’s dividend.
June 2015
“10% Trade” with Apple (AAPL)
Trade Type: Cash-Secured Put
Opened: May 29, 2015
Closed: June 19, 2015
Result: My contract to purchase 100 shares of AAPL at $130.00 per share was executed and I was “put” the shares. As a result, I purchased 100 shares of AAPL at a cost of $130.00 per share. Considering the $214.00 in income that I collected for selling the put contract, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $128.03 per share. With the stock opening at $127.49 on June 22, the first trading day after being assigned shares, I will hold the stock and watch for a new “10% Trade” opportunity that will involve selling a covered call on my shares in order to generate additional income and further reduce my cost basis. Another way to look at this trade is that I got paid $205.25 (after commissions) to be able to buy 100 shares of AAPL at $130.00 per share. That works out to a 1.6% yield on my $13,000 investment ($130 per share x 100 shares). The trade lasted 21 days, which is a 27.5% annualized yield.
“10% Trade” with Deere & Company (DE)
Trade Type: Covered Call
Opened: May 14, 2015
Closed: June 19, 2015
Result: My 100 shares of DE were called away at $92.50 per share for a $342.06 profit. This trade worked out to a 3.8% total return in 36 days, which is a 38.3% annualized yield.
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: April 27, 2015
Closed: June 19, 2015
Result: My contract to sell 200 shares of MSFT at $48.00 per share expired worthless for a total profit of $226.42. This trade worked out to a 2.4% total return in 53 days, which is a 16.3% annualized yield. With the stock trading at $46.10 at expiration (and the time of this update), I’ll continue to hold shares until they rise closer to $48.00 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Microsoft’s dividend.
May 2015
“10% Trade” with Apple (AAPL)
Trade Type: Cash-Secured Put
Opened: April 30, 2015
Closed: May 15, 2015
Result: My contract to purchase 100 shares of AAPL at $127.00 per share expired worthless for a $260.25 profit. This trade worked out to a 2.0% total return in 15 days, which is a 49.9% annualized yield.
“10% Trade” with Emerson Electric (EMR)
Trade Type: Covered Call
Opened: April 6, 2015
Closed: May 15, 2015
Result: My 200 shares of EMR were called away at $57.50 per share for a $317.02 profit. This trade worked out to a 2.8% total return in 39 days, which is a 25.8% annualized yield.
April 2015
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: March 25, 2015
Closed: April 24, 2015
Result: My 200 shares of MSFT were called away at $42.00 per share for a $242.36 profit. This trade worked out to a 2.9% total return in 30 days, which is a 35.4% annualized yield.
“10% Trade” with Apple (AAPL)
Trade Type: Covered Call
Opened: March 20, 2015
Closed: April 24, 2015
Result: My 100 shares of AAPL were called away at $128.00 per share for a $447.06 profit. This trade worked out to a 3.5% total return in 35 days, which is a 36.5% annualized yield.
March 2015
“10% Trade” with Deere & Co. (DE)
Trade Type: Covered Call
Opened: February 19, 2015
Closed: March 27, 2015
Result: My contract to sell 100 shares of DE at $92.00 per share expired worthless for a total profit of $209.23. This trade worked out to a 2.3% total return in 36 days, which is a 23.4% annualized yield. With the stock trading at $87.46 at expiration (and the time of this update), I’ll continue to hold shares until they rise closer to $90.00 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Deere’s dividend.
February 2015
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: January 27, 2015
Closed: February 20, 2015
Result: My 200 shares of MSFT were called away at $43.00 per share for a $198.33 profit, which includes dividends. This trade worked out to a 2.3% total return in 24 days, which is a 35.1% annualized yield.
“10% Trade” with Apple (AAPL)
Trade Type: Covered Call
Opened: January 20, 2015
Closed: February 5, 2015
Result: My 100 shares of AAPL were called away early and sold at $110.00 per share for a $410.99 profit. This trade worked out to a 3.8% total return in 16 days, which is an 86.2% annualized yield.
January 2015
“10% Trade” with Starbucks (SBUX)
Trade Type: Covered Call
Opened: January 5, 2015
Closed: January 27, 2015
Result: On January 27 I executed a “buy to close” order on the February 20, $80 call contract that I had “sold to open” back on January 5. Back then, I had purchased 100 shares of Starbucks for $79.92 per share and had sold one call for $2.46 per share. On January 27 I bought the call back for $8.70 per share. I then sold my 100 shares of Starbucks for $88.68 per share. At the end of the day, after commissions and fees, I made a net profit of $218.46 ($9,097.21 – $8,878.75). This trade worked out to a 2.5% total return in 22 days, which is a 40.8% annualized yield. If I had left the trade until expiration, and assuming Starbucks stayed above $80, I would have generated a 3.1% total return in 46 days. So by closing out the trade early I was able to realize 80% (2.5% / 3.1%) of the likely potential income of the trade in 48% (22 days / 46 days) of the time. I immediately used the cash from this trade to place a new “10% Trade” with Microsoft (MSFT). This new trade, which will last 24 days, is poised to generate a 1.6% to 2.6% total return, or a 24.1% to 39.4% annualized return. If I had left the Starbucks trade open, I’d be generating a 0.6% total return during the same 24-day period, which works out to an annualized return of “just” 10%. So by closing the Starbucks trade early and deploying the capital into the new Microsoft trade, I was able to boost my annualized yield from about 10% to at least 24.1%.
“10% Trade” with Apple (AAPL)
Trade Type: Covered Call
Opened: January 2, 2015
Closed: January 17, 2015
Result: My contract to sell 100 shares of AAPL at $109.29 per share expired worthless for a $206.47 total profit. This trade worked out to a 1.9% total return in 15 days, which is a 46.2% annualized yield. With the stock trading at $105.99 at expiration (and the time of this update), I’ll continue to hold shares until they rise closer to $108 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Apple’s dividend.
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: December 15, 2014
Closed: January 17, 2015
Result: My 300 shares of KO were called away at $41.00 per share for a $287.10 profit. This trade worked out to a 2.4% total return in 33 days, which is a 26.0% annualized yield.
“10% Trade” with Deere & Co. (DE)
Trade Type: Covered Call
Opened: December 3, 2014
Closed: January 17, 2015
Result: My contract to sell 100 shares of DE at $90.00 per share expired worthless for a $160.89 total profit. This trade worked out to a 1.6% total return in 45 days, which is a 13.3% annualized yield. With the stock trading at $87.30 at expiration (and the time of this update), I’ll continue to hold shares until they rise closer to $90.00 per share. At that point I’ll look for opportunities to sell another covered call in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Deere’s dividend.
“10% Trade” with Microsoft (MSFT)
Trade Type: Cash-Secured Put
Opened: December 2, 2014
Closed: January 17, 2015
Result: My contract to purchase 200 shares of MSFT at $48.00 per share was executed and I was “put” the shares. As a result, I purchased 200 shares of MSFT at a cost of $48.00 per share. Considering the $208.00 in income that I collected for selling the put contract, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $47.05 per share. With the stock trading at $46.24 at expiration (and the time of this update), I plan on holding shares until they rise closer to $48.00 per share. At that point I’ll look for opportunities to sell covered calls in order to generate additional income and further reduce my cost basis. In the meantime, I’m happy collecting Microsoft’s dividend. Another way to look at this trade is that I got paid $190.52 (after commissions) to be able to buy 200 shares of MSFT at $48.00 per share. That works out to a 2.0% yield on my $9,600 investment. The trade lasted 46 days, which is a 15.8% annualized yield.
December 2014
Sold 300 Shares of Mattel (MAT)
Trade Type: Sale
Opened: July 19, 2014
Closed: December 22, 2014
Result: Back in July I was put 300 shares of MAT at a cost of $37.00 per share. So my outlay for this investment was $11,100. However, I collected a total of $360 in options premium (from selling puts and covered calls), and $228 in dividend income while owning shares. One way to look at this is to consider that this income brings my total outlay for this investment down to $10,512. On December 22, I sold the same 300 shares of MAT for $29.36 per share. My proceeds totaled $8,808. So I essentially invested $10,512 and only received $8,808 back. While this move closed out my “10% Trade” holding with Mattel for essentially a loss of $1,704, it offers a compelling tax-loss harvesting opportunity.
“10% Trade” with International Business Machines (IBM)
Trade Type: Covered Call
Opened: December 1, 2014
Closed: December 20, 2014
Result: My contract to sell 100 shares of IBM at $162.50 per share expired worthless for a $160.89 total profit. This trade worked out to a 1.0% total return in 19 days, which is a 19.1% annualized yield.
“10% Trade” with Aflac (AFL)
Trade Type: Covered Call
Opened: November 24, 2014
Closed: December 20, 2014
Result: My 200 shares of AFL were called away at $60.00 per share for a $452.60 profit. This trade worked out to a 3.9% total return in 26 days, which is a 54.5% annualized yield.
November 2014
“10% Trade” with International Business Machines (IBM)
Trade Type: Cash-Secured Put
Opened: October 31, 2014
Closed: November 28, 2014
Result: My contract to purchase 100 shares of IBM at $162.50 per share was executed and I was “put” the shares. As a result, I purchased 100 shares of IBM at a cost of $162.50 per share. Considering the $254.00 in income that I collected for selling the put contract, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $160.13 per share. With the stock trading at $162.17 at the time of this update, I’ll be looking for immediate opportunities to sell a covered call on my newly assigned shares in order to generate additional income and further reduce my cost basis. Another way to look at this trade is that I got paid $245.26 (after commissions) to be able to buy 100 shares of IBM at $162.50 per share. That works out to a 1.5% yield on my $162.50 purchase price. The trade lasted 28 days, which is a 19.7% annualized yield.
“10% Trade” with Chevron (CVX)
Trade Type: Cash-Secured Put
Opened: November 4, 2014
Closed: November 22, 2014
Result: My contract to purchase 100 shares of CVX at $112.00 per share expired worthless for a $136.01 total profit. This trade worked out to a 1.2% total return in 18 days, which is a 24.6% annualized yield.
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: October 22, 2014
Closed: November 22, 2014
Result: My 300 shares of KO were called away at $41.00 per share for a $194.40 profit. This trade worked out to a 1.6% total return in 31 days, which is an 18.6% annualized yield.
“10% Trade” with Medtronic (MDT)
Trade Type: Covered Call
Opened: September 24, 2014
Closed: November 22, 2014
Result: My 200 shares of MDT were called away at $65.00 per share for a $584.46 profit. This trade worked out to a 4.6% total return in 59 days, which is a 28.5% annualized yield.
“10% Trade” with Aflac (AFL)
Trade Type: Covered Call
Opened: September 22, 2014
Closed: November 22, 2014
Result: My contract to sell 200 shares of AFL at $60.00 per share expired worthless and I ended up hanging onto shares. In the process, I generated $230.47 in net income. Taking that income into consideration, this trade worked out to a 1.9% total yield in 61 days, which is an 11.6% annualized yield. An alternative way to look at this trade is that the income I generated reduced my cost basis to $57.56. With AFL trading for $59.76 at the time of expiration, I’ll be looking to sell another round of calls to generate more income and reduce my cost basis further.
“10% Trade” with Wells Fargo (WFC)
Trade Type: Covered Call
Opened: September 11, 2014
Closed: November 22, 2014
Result: My 200 shares of WFC were called away at $52.50 per share for a $452.52 profit. This trade worked out to a 4.2% total return in 72 days, which is a 22.4% annualized yield.
“10% Trade” with Target (TGT)
Trade Type: Covered Call
Opened: October 21, 2104
Closed: November 14, 2014
Result: My 100 shares of TGT were called away early at $62.50 per share for a $322.98 profit. This trade worked out to a 5.4% total return in 24 days, which is an 81.9% annualized yield.
October 2014
“10% Trade” with Chevron (CVX)
Trade Type: Covered Call
Opened: October 2, 2014
Closed: October 31, 2014
Result: My 100 shares of CVX were called away at $117 per share for a $265.31 total profit. This trade worked out to a 2.3% total return in 29 days, which is a 28.7% annualized yield.
“10% Trade” with Apple (AAPL)
Trade Type: Cash-Secured Put
Opened: October 20, 2014
Closed: October 24, 2014
Result: My contract to purchase 100 shares of AAPL at $99.00 per share expired worthless for a $200.26 total profit. This trade worked out to a 2.0% total return in four days, which is a 184.7% annualized yield.
“10% Trade” with General Electric (GE)
Trade Type: Cash-Secured Put
Opened: September 26, 2014
Closed: October 24, 2014
Result: My contract to purchase 300 shares of GE at $25.00 per share expired worthless for a $69.94 total profit. This trade worked out to a 0.9% total return in 28 days, which is a 12.2% annualized yield.
“10% Trade” with Target (TGT)
Trade Type: Cash-Secured Put
Opened: August 26, 2014
Closed: October 18, 2014
Result: My contract to purchase 100 shares of TGT at $60.00 per share was executed and I was “put” the shares. As a result, I purchased 100 shares of TGT at a cost of $60.00 per share. Considering the $96.00 in income that I collected for selling the put contract, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $59.20 per share. With the stock trading at $59.07 at the time of this update, I’ll be looking for immediate opportunities to sell a covered call on my newly assigned shares in order to generate additional income and further reduce my cost basis. Another way to look at this trade is that I got paid $88.01 (after commissions) to be able to buy TGT at $60.00 per share. That works out to a 1.5% yield on my $60.00 purchase price. The trade lasted 53 days, which is a 10.1% annualized yield.
“10% Trade” with Cisco (CSCO)
Trade Type: Covered Call
Opened: August 18, 2014
Closed: September 20, 2014
Result: My contract to sell 500 shares of CSCO at $25.00 per share expired worthless and I ended up hanging onto shares. In the process, I generated $257.70 in net income. Taking that income into consideration, this trade worked out to a 2.1% total yield in 61 days, which is a 12.6% annualized yield. An alternative way to look at this trade is that the income I generated reduced my cost basis to $24.26. However, at the time I write this, CSCO is trading for $23.25, so I will hold shares until they rebound before selling another round of calls to generate more income and reduce my cost basis further. In the meantime, I’ll collect a 3.0% annual dividend yield on my 500 shares.
“10% Trade” with Mattel (MAT)
Trade Type: Covered Call
Opened: July 30, 2014
Closed: October 18, 2014
Result: My contract to sell 300 shares of MAT at $37.00 per share expired worthless and I ended up hanging onto shares. In the process, I generated $165.00 in covered call income and $114.00 in dividend income. At the time I write this, MAT is trading for about $29.00, so I will hold shares until they rebound before selling another round of calls to generate more income and reduce my cost basis further. In the meantime, I’ll collect the dividends.
“10% Trade” with Walgreens (WAG)
Trade Type: Cash-Secured Put
Opened: August 13, 2014
Closed: October 18, 2014
Result: My contract to purchase 200 shares of WAG at $60.00 per share expired worthless for a $330.55 total profit. This trade worked out to a 2.8% total return in 66 days, which is a 15.2% annualized yield.
September 2014
“10% Trade” with Wal-Mart (WMT)
Trade Type: Covered Call
Opened: August 19, 2014
Closed: September 20, 2014
Result: My 200 shares of WMT were called away at $75 per share for a $137.42 total profit. This trade worked out to a 0.9% total return in 32 days, which is a 10.5% annualized yield.
“10% Trade” with Apple (AAPL)
Trade Type: Cash-Secured Put
Opened: August 8, 2014
Closed: September 20, 2014
Result: My contract to purchase 100 shares of AAPL at $87.50 per share expired worthless for a $107.01 total profit. This trade worked out to a 1.2% total return in 43 days, which is a 10.4% annualized yield.
“10% Trade” with General Electric (GE)
Trade Type: Cash-Secured Put
Opened: August 1, 2014
Closed: September 20, 2014
Result: My contract to purchase 300 shares of GE at $25 per share expired worthless for a $147.94 total profit. This trade worked out to a 2.0% total return in 50 days, which is a 14.4% annualized yield.
August 2014
“10% Trade” with Target (TGT)
Trade Type: Covered Call
Opened: July 10, 2014
Closed: August 25, 2014
Result: My 100 shares of TGT were called away at $60 per share for a $176.60 total profit. This trade worked out to a 3.0% total return in 43 days, which is a 25.1% annualized yield.
“10% Trade” with Wells Fargo (WFC)
Trade Type: Covered Call
Opened: July 11, 2014
Closed: August 16, 2014
Result: My contract to sell 200 shares of WFC at $52.50 per share expired worthless and I ended up hanging onto shares. In the process, I generated $112.52 in net income. Taking that income into consideration, this trade worked out to a 1.1% total yield in 36 days, which is an 11.1% annualized yield. An alternative way to look at this trade is that the income I generated reduced my cost basis to $51.01. However, WFC is currently trading at $50.21, so I will hold shares until they rebound before selling another round of calls to generate more income and reduce my cost basis further. In the meantime, I’ll collect a 2.6% annual dividend yield on my 200 shares.
“10% Trade” with McDonald’s (MCD)
Trade Type: Covered Call
Opened: July 7, 2014
Closed: August 16, 2014
Result: My contract to sell 100 shares of MCD at $100.00 per share expired worthless and I ended up hanging onto shares. In the process, I generated $155.27 in net income. Taking that income into consideration, this trade worked out to a 1.6% total yield in 40 days, which is a 14.2% annualized yield. An alternative way to look at this trade is that the income I generated reduced my cost basis to $98.41. However, MCD is currently trading at $93.79, so I will hold shares until they rebound before selling another round of calls to generate more income and reduce my cost basis further. In the meantime, I’ll collect a 3.2% annual dividend yield on my 100 shares.
“10% Trade” with Deere & Co. (DE)
Trade Type: Covered Call
Opened: June 25, 2014
Closed: August 16, 2014
Result: My contract to sell 100 shares of DE at $92.50 per share expired worthless and I ended up hanging onto shares. In the process, I generated $144.27 in net income. Taking that income into consideration, this trade worked out to a 1.6% total yield in 52 days, which is an 11.2% annualized yield. An alternative way to look at this trade is that the income I generated reduced my cost basis to $89.87. However, DE is currently trading at $84.80, so I will hold shares until they rebound before selling another round of calls to generate more income and reduce my cost basis further. In the meantime, I’ll collect a 2.6% annual dividend yield on my 100 shares.
“10% Trade” with Wal-Mart (WMT)
Trade Type: Cash-Secured Put
Opened: June 24, 2014
Closed: August 16, 2014
Result: My contract to purchase 200 shares of WMT at $75.00 per share was executed and I was “put” the shares. As a result, I purchased 200 shares of WMT at a cost of $75.00 per share. Considering the $242.00 in income that I collected for selling the put contracts, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $73.95 per share. With the stock currently trading at $73.90, I’ll be looking for immediate opportunities to sell covered calls on my newly assigned shares in order to generate additional income and further reduce my cost basis. Another way to look at this trade is that I got paid $230.51 (after commissions) to be able to buy WMT at $75.00 per share. That works out to a 1.6% yield on my $75.00 purchase price. The trade lasted 53 days, which is a 10.6% annualized yield.
“10% Trade” with Aflac (AFL)
Trade Type: Cash-Secured Put
Opened: May 30, 2014
Closed: August 16, 2014
Result: My contract to purchase 200 shares of AFL at $60.00 per share expired worthless for a $256.01 total profit. This trade worked out to a 2.1% total return in 78 days, which is an 10.0% annualized yield. With AFL currently trading at $60.10, I’ll be looking to execute another “10% Trade” immediately.
“10% Trade” with Apple (AAPL)
Trade Type: Cash-Secured Put
Opened: June 23, 2014
Closed: August 1, 2014
Result: My contract to purchase 200 shares of AAPL at $86.00 per share expired worthless for a $216.51 total profit. This trade worked out to a 1.3% total return in 39 days, which is an 11.8% annualized yield.
July 2014
“10% Trade” with IBM (IBM)
Trade Type: Cash-Secured Put
Opened: June 10, 2014
Closed: July 19, 2014
Result: My contract to purchase 100 shares of IBM at $180.00 per share expired worthless for a $223.01 total profit. This trade worked out to a 1.2% total return in 39 days, which is an 11.6% annualized yield.
“10% Trade” with Mattel (MAT)
Trade Type: Cash-Secured Put
Opened: May 19, 2014
Closed: July 19, 2014
Result: My contract to purchase 300 shares of MAT at $37.00 per share was executed and I was “put” the shares. As a result, I purchased 300 shares of MAT at a cost of $37.00 per share. Considering the $195.00 in income that I collected for selling the put contracts, and subtracting out the commissions I had to pay my broker, my cost basis was reduced to $36.42 per share. With the stock currently trading at $36.20, I’ll be looking for immediate opportunities to sell covered calls on my newly assigned shares in order to generate additional income and further reduce my cost basis.
June 2014
“10% Trade” with Wal-Mart (WMT)
Trade Type: Cash-Secured Put
Opened: May 27, 2014
Closed: June 21, 2014
Result: My contract to purchase 200 shares of WMT at $75.00 per share expired worthless for a $114.51 total profit. This trade worked out to a 0.8% total return in 25 days, which is an 11.2% annualized yield.
“10% Trade” with Target (TGT)
Trade Type: Cash-Secured Put
Opened: May 7, 2014
Closed: June 21, 2014
Result: My contract to purchase 200 shares of TGT at $55.00 per share expired worthless for a $203.76 total profit. This trade worked out to a 1.2% total return in 45 days, which is a 10.0% annualized yield.
“10% Trade” with Teva Pharmaceuticals (TEVA)
Trade Type: Cash-Secured Put
Opened: May 2, 2014
Closed: June 21, 2014
Result: My contract to purchase 200 shares of TEVA at $46.00 per share expired worthless for a $152.51 total profit. This trade worked out to a 1.7% total return in 50 days, which is a 12.1% annualized yield.
“10% Trade” with Microsoft (MSFT)
Trade Type: Cash-Secured Put
Opened: April 22, 2014
Closed: June 21, 2014
Result: My contract to purchase 300 shares of MSFT at $38.00 per share expired worthless for a $197.76 total profit. This trade worked out to a 1.7% total return in 60 days, which is a 10.6% annualized yield.
May 2014
“10% Trade” with McDonald’s (MCD)
Trade Type: Cash-Secured Put
Opened: April 11, 2014
Closed: May 17, 2014
Result: My contract to purchase 100 shares of MCD at $97.50 per share expired worthless for a $102.05 total profit. This trade worked out to a 1.0% total return in 36 days, which is a 10.6% annualized yield.
“10% Trade” with General Electric (GE)
Trade Type: Cash-Secured Put
Opened: March 14, 2014
Closed: May 17, 2014
Result: My contract to purchase 200 shares of GE at $25 per share expired worthless for a $128.05 total profit. This trade worked out to a 2.6% total return in 64 days, which is a 14.6% annualized yield.
“10% Trade” with Cisco (CSCO)
Trade Type: Covered Call
Opened: March 3, 2014
Closed: May 17, 2014
Result: My 200 shares of CSCO were called away at $22 per share for a $238.00 total profit. This trade worked out to a 4.6% total return in 75 days, which is a 22.2% annualized yield.
April 2014
“10% Trade” with Pepsi (PEP)
Trade Type: Covered Call
Opened: February 14, 2014
Closed: April 19, 2014
Result: My 100 shares of PEP were called away at $80 per share for a $233.28 total profit. This trade worked out to a 2.9% total return in 65 days, which is a 16.6% annualized yield.
“10% Trade” with Coca-Cola (KO)
Trade Type: Covered Call
Opened: February 18, 2014
Closed: April 19, 2014
Result: My 300 shares of KO were called away at $38 per share for a $368.78 total profit. This trade worked out to a 3.3% total return in 60 days, which is a 20.0% annualized yield.
“10% Trade” with Wal-Mart (WMT)
Trade Type: Covered Call
Opened: February 20, 2014
Closed: April 19, 2014
Result: My 100 shares of WMT were called away at $75 per share for a $404.00 total profit. This trade worked out to a 5.2% total return in 58 days, which is a 32.5% annualized yield.
“10% Trade” with Microsoft (MSFT)
Trade Type: Covered Call
Opened: February 24, 2014
Closed: April 19, 2014
Result: My 100 shares of MSFT were called away at $38 per share for a $266.00 total profit. This trade worked out to a 6.5% total return in 54 days, which is a 43.8% annualized yield.