Purchase of more GE and GILD Options
While I have not been posting as regularly as I would like, I still have been staying active with buying stocks and selling options.
Here’s the latest:
I get paid at the end of each month so tend to do most of my stock buying early in the month. The free cash sitting in my account just calls to me. I guess that urge to spend the money on stocks is much better than going on a buying spree at the store!
On March 6th I purchased an additional 250 shares of GE. This adds $240 to my annual 12-month forward dividends. I now own 685 shares of GE, making it one of my larger investments. In total GE brings in $658 a year in dividends. Not too shabby. Plus, I think with the industrial Internet trend, GE is poised for continued growth and stock appreciation as well.
As far as options trading, on 2/7/2017 I sold a put and call on GILD. Both had expiration dates of 3/24/2017. I don’t like accounting for options profits/losses until they have been realized. GILD stock price was around 73.13 when I sold these options. I had strikes at 67.5 and 78.5, bringing in about $122 in premiums before fees.
As you know, GILD continues to take a hit in stock price. While I would have been fine buying 100 shares at 67.5, since this would have lowered my cost basis, I decided to roll it out and down instead. On 3/21, I closed both the put and call, making approximately $33 on the put side (annualized 4.3% profit) and $40 on the call side (annualized 4.4% profit). Altogether I made about 60% on that combined trade. I then sold a new put call expiring on 4/28 at a strike price of 66.5; for this trade I made $105 so far (but I will not include this in any monthly reports until it expires or I close it).
I really like these GILD puts. It’s stock price and premium that it brings in are about perfect for me. Once things calm down at work I’ll be able to make some more options trades each month.
My current annual 12-month forward dividends stand at $6469.59.
Hourly wage based on 40 hour work week (2087 hours): $3.10/hour
Hourly wage based on non-stop work (8760 hours): $0.74/hour