01-04-2021, 09:20 AM
Paul, here's what going on with my T before the open this AM. Note I am not particularly bullish or bearish on T in the 29 range and that is when most of the option sells occurred. I do this every month with about five lower risk stocks. I get serious with a larger amount of contracts only when a stock is truly over or under sold. It's a safe enough place to park a little cash most anytime if you stick to decent quality stocks with dividends.
300 shares long with basis around 28.50. (excluding monthly premiums received while holding the shares). I don't wish to sell many shares under my cost. My true cost is about $27 if you want to consider premiums received on calls that expired worthless previous to now.
PUT Strike 28 EXP 1/15 Premium received 51. Currently 41 Up 10
PUT Strike 29 EXP 1/8 57/86 Down 29
CALL Strike 28 EXP 1/15 60/65 Down 5
CALL Strike 30 EXP 1/8 38/11 Up 27
CALL Strike 32.50 EXP 1/22 54/3 Up 51
This is all about consistent income for me. I have no emotional attachment to T. T pays a div this week so that is mostly locked in. I have collected $260 premium up front on these contracts and the extrinsic values should fall rapidly as expirations approach. This doesn't have to work out perfectly to be a win. We'll see what happens.
That strike 28 CALL is potentially problematic. It's in the money with EX-div approaching. We'll keep a close eye on that one.
The strike 32.50 CALL should have been closed end of last week. I was working a lot of hours. Too many positions to keep an eye on. It doesn't expire for over two weeks and it could have been closed for about $5. If T hits 32.50 that fast this mess will still be quite profitable.
I may or may not roll a put or call forward this week and if so I will explain why I did or didn't. If the math doesn't work I'll let it all play out, or buy back the option for a small loss. For my boring income stocks like T-MO-KO-MET-HRL this is a game of inches for me. Collect 10 fifty dollar bills up front and try to only give 1-2 back. It's not about fighting to the death to "win" every trade. It's about consistent as possible monthly income from options.
When I get bored I will add up income received on any one of these boring stocks that went nowhere for all of 2020.
300 shares long with basis around 28.50. (excluding monthly premiums received while holding the shares). I don't wish to sell many shares under my cost. My true cost is about $27 if you want to consider premiums received on calls that expired worthless previous to now.
PUT Strike 28 EXP 1/15 Premium received 51. Currently 41 Up 10
PUT Strike 29 EXP 1/8 57/86 Down 29
CALL Strike 28 EXP 1/15 60/65 Down 5
CALL Strike 30 EXP 1/8 38/11 Up 27
CALL Strike 32.50 EXP 1/22 54/3 Up 51
This is all about consistent income for me. I have no emotional attachment to T. T pays a div this week so that is mostly locked in. I have collected $260 premium up front on these contracts and the extrinsic values should fall rapidly as expirations approach. This doesn't have to work out perfectly to be a win. We'll see what happens.
That strike 28 CALL is potentially problematic. It's in the money with EX-div approaching. We'll keep a close eye on that one.
The strike 32.50 CALL should have been closed end of last week. I was working a lot of hours. Too many positions to keep an eye on. It doesn't expire for over two weeks and it could have been closed for about $5. If T hits 32.50 that fast this mess will still be quite profitable.
I may or may not roll a put or call forward this week and if so I will explain why I did or didn't. If the math doesn't work I'll let it all play out, or buy back the option for a small loss. For my boring income stocks like T-MO-KO-MET-HRL this is a game of inches for me. Collect 10 fifty dollar bills up front and try to only give 1-2 back. It's not about fighting to the death to "win" every trade. It's about consistent as possible monthly income from options.
When I get bored I will add up income received on any one of these boring stocks that went nowhere for all of 2020.