Thursday, May 28, 2015

Recent put writing: Realty Income Corp (NYSE:O)

Quick report on one of my recent puts writing on Realty Income Corp (NYSE: O). 

The main purpose of this action is to buy stock if assigned, at net cost per share $44.81.

Friday, May 15, 2015

JPM: one call, one put

Quick report on my recent options transactions:-

One call: I bought a JPM Jan 2017 60.000 call on 05/05/15.

One Put: I wrote a JPM Jan 2017 60.000 put on 05/05/15.

Net out-of-pocket money is $252.20. 

The purpose of the call is to scoop the benefit of rising prices.  The purpose of the put is to offset partial cost of the call.

Worst case scenario: I get assigned on the put, and no action on the call.  I have to buy 100 shares with the net price per share at $62.67. 

Since I have confidence in JPM, I am not too worried about the worst case scenario.  S&P Capital rates JPM a "buy" rating with 4 stars.  12-month target price is $69, and fair value at $73.20. If we believe FED will at least nominally increase the interest rate sometime later this year or early next year, the prospect of banks is promising.

Ideally, I hope JPM price will go up a bit so I can benefit from the price rising space.  I conservatively put the expiration date into 2017, so I have more time to maneuver.

How do you think of my call/put practice?  Do you think JPM is a safe play here?

Recent Stock Purchase -- Praxair, Inc. (NYSE:PX)

Quick report on my recent stock purchase: bought 50 shares PX at purchase price $118/share on 05/12/15. Details are as following:

Key points highlight:-
  • PX is one of Dividend Contenders, with 22 years consecutive years of higher dividends.
  • Recently PX declared $0.715/share quarterly dividend.  Payable June 15; for shareholders of record June 5; ex-div June 3.
  • Yield on cost is 2.42%. 50 shares annually contribute $143 to my total dividend pool.
  • 1-year dividend growth rate is 8.3%, 3-year at 9.1%, 5-year at 10.2%; and 10-year at 15.8%.

Friday, May 8, 2015

Recent Stock Purchase -- Gilead Sciences (GILD)

On 05/07/15, I purchased 50 shares Gilead Sciences (NYSE: GILD) at $100.50/share.  Here are the details of this transaction:-

 Gilead Sciences, Inc. recently announced that the company's Board of Directors has declared a quarterly cash dividend of $0.43 per share of common stock, to be paid on the payment date of June 29, 2015 to all stockholders of record as of the close of business on the record date of June 16, 2015. This is the first quarterly dividend declared under the Board's dividend program announced on February 3, 2015.  Future dividends will be subject to Board approval.

At the same time, I have a put written on GILD, strike price at $95, and expiration date on 05/15/15.

Friday, May 1, 2015

Monthly Review -- April 2015

Dividend income

In the month of April, I received $108.60 dividends in total.  Details are shown in below chart.

Below is the bar chart of MU monthly dividends record.  I received $403.35 dividends in the first four months.

New Stock Purchases

I did two purchases in April.

  • T -- 100 shares bought on 04/09/15; purchase price $32.50; 12-month forward dividends $188.
  • UPS -- 50 shares bought on 04/17/15; purchase price $95; 12-month forward dividends $146.

Puts expired in April

I have several puts written with expiration date in April.  Total income from these puts is $426.20.

  • T puts
  • EMR
  • XOM
  • RY
  • BABA
  • CAT (Closed early, not with expiration date in April)