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

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4 Responses

  1. Great pick-ups. I re-opened a position with GE a few weeks ago. 25 shares to start. As for GILD, it’s a good buy at the price you got it for. Nice work.
    Investment Hunting recently posted…Things Beginning Investors Don’t Know (But Should!)My Profile

  2. Amber tree says:

    Great option income. Keep doing that for extra income!
    Amber tree recently posted…The only way is up – Amber IndexMy Profile

  3. DivHut says:

    Looks like GE is starting to make the rounds these days. Well Rounded Investor, IH above just picked some up as well and I have read others considering it. I guess under 30 it starts to look more compelling. How about GIS under 60? I expect to see more attention to that name too. Thanks for sharing and keep on buying.
    DivHut recently posted…Stock Spin Offs With No YieldMy Profile

  4. Stalflare says:

    Ciao Scott,
    GE is a good company but I am reading lots of mixed reviews on it recently, you seem to be quite exposed to it, it would be nice to know what you see in them to allocate so much capital. Personally I think they are a great conglomerate, and would look at adding more positions if it goes back to the 28/26 area, as since I bought the first shares the company didn’t really work wonders and I do not think that it’s worth 32/34 as it was some time ago.
    Ciao caio

    Stal
    Stalflare recently posted…February 2017 UpdateMy Profile

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