Monday, September 28, 2015

Financial Planning Weekend Update: September 28, 2015

Monday September 21

The HCP calls having expired worthless on Friday I wrote another set today, collecting $264.84 in premium. So far this month I've collected $828.24 in premium and dividends and another $238.95 in net profit on the F position that was assigned. At this point the MRK calls are in absolutely no danger of being assigned on Friday so that position will get another set of calls written on Monday. With MRK beaten down these last few weeks I'll probably use some of my cash to purchase another 100 shares sometime this week.

Tuesday September 22

Big time market pull back today so everything's out of the money. MRK's yield is drifting up and is over 3.6% so that's starting to look pretty tempting. We'll see what happens tomorrow. Patience!

Wednesday September 23

As planned I bought another 100 shares of MRK at $50.50 plus $8.95 commission for a cost basis of $50.5895. This lowers my overall cost basis by $0.98 and increases my annual dividend by $180.00. MRK went ex-dividend on the 11th so I won't see the dividend on this lot. My existing calls remain in no danger. Monday I'll write another set - 7 instead of 6 this time. The October 16 53.50 are bid at $0.40 this morning.

Thursday September 24

No activity in the IRA today.

Friday September 25

Biotech continues under pressure. As expected my MRK calls expired worthless. As funds become available I'll continue to pickup more MRK. ED remains in the money and that will bear watching as the next ex-dividend date in early November approaches.

Monday September 28

MRK has continued to fall along with the Pharma/Healthcare/Biotech sector as a whole. The last set of MRK calls having expired worthless on Friday, I wrote 7 Oct 16 $51.50 at $0.52 for a net income of $349.65. Somehow I managed to make that sale during a mid-morning price pop in MRK, so I'm pretty happy. As I write this the calls are $2.75 out of the money. I'll have to keep an eye on them, but given current conditions I don't think I have much to worry about.

This will be the last activity in the IRA for the month of September. Income for the month is shown below:

That's a pretty good month. About 1.37% in income based on the $104,000.00 original investment. Annualized that comes to 17.75%. Yep, pretty good.

From now on I'll only be posting financial planning updates if there's activity in the IRA. There will be other posts so stay tuned. As always, comments are welcome.

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