Monday December 7, 2015
Nothing happened in the account last week, hence the two week gap.
I opened a new position in Altria (MO) with the following Buy/Write:
Commission and fees came to $13.61 so I have a cost basis of $57.7226. There are only two weeks left in the calls and I expect to be able to write at least twice a month against this underlying. At this point I have approximately half of my retirement funds in this IRA and the rest will stay in my 401(k) until retirement.
The market gave up a good chunk of Friday's gains so volatility is jacking up option premiums. It's looking like I will have to roll out my MRK position on Thursday but that should be the only other activity this week.
Tuesday December 8, 2015
The S&P closed down another 10 points. Maybe I won't have to roll MRK.
Wednesday December 9, 2015
Altria (MO) declared the expected $0.565 dividend payable January 11 to shareholders of record December 24. My current position expires on the 18th so I'll be writing new calls on the 18th if I have to roll out or the 21st if they expire so I probably won't have to worry about early assignment due to the dividend as there will be plenty of time left in the contract.
Thursday December 10, 2015
I rolled out my MRK position to the February $52.50 for a net credit of $764.16. The full story of this roll out was posted as Avoiding Early Exercise of Covered Calls over at Seeking Alpha.
Friday December 11, 2015
That wraps up a nasty week in the markets with a nearly 2% drop in the S&P 500. Most of my positions expire next week and the best that can be said at least they're out of the money. As of today they look like this:
Only HCP is in the money but with the Fed Reality Day set for Wednesday I will not be at all surprised to see it drift under my strike.
Next week should be interesting and I hope not too painful. Friday is a "triple witching" expiration so there could be some additional volatility at roll out time.