At the beginning of every month I like to take a look at the activity in the previous month.  I find that doing so keeps me interested, motivated and accountable.

My Equity Activity in August 2016

I didn’t sell any long positions this month, but I made my monthly equity purchase plus my new cleared option income.  After completing my standard undervalued dividend watch list I decided to purchase a lot of T. Rowe Price.  At the time of purchase TROW had:

  • A P/E of 16.8 vs 21.8 Industry Average
  • An Operating Margin of 38.8% vs 21.7% Industry Average
  • A P/B of 3.6 (under my 4.0 threshold)
  • A Dividend Yield of 3.04% (with a 30 year track record of increasing the dividend)
  • A Payout Ratio of 51.1% (below my 60% threshold)

Before the purchase I already owned 22 shares.  Chances are that at one time I owned more shares, but they were sold prior to my move to my new starting point which coincides with this site.  Since I always buy $500 and I had $18 of cleared option income I just rounded up to $559 (since buying one less share would put me under my minimum of $518) – for a purchase of 8 more shares.

My Dividend Income for August 2016

Only one of my stocks paid a dividend in August 2016 – CAT.  I received a .77/share dividend payout and I owned 22 shares receiving $16.94 which was reinvested buying a miniscule .201 shares of CAT.

My Cleared Options Income for August 2016

Wow! August really proved to me that my plan and methodology has some legitimate legs.  On a portfolio of approximately $13,000 I created $163.74 of income! That equates to an extra 1.2% of income that is now going to compounded when I purchase my next lot.  This amount would have been higher, but I fucked up.  Instead of selling to open I bought to open – this essentially bet against the companies I normally am in favor of! I was able to roll out of the trades in the same day only losing about $30.  Notwithstanding my fuck up, the additional income allows me to purchase a larger long position which leads to additional leveraging I can take (as I won’t go over ~85% of my portfolio for naked put risk):

BBII have found that I am moving too quickly to highlight every trade.  Instead, I think I’ll just do it every 2 weeks or so.  My total moves since I started this experiment are below:

Opening Date Symbol Stock Price Trade Strike Expiration Date DTE Opening Price P/L % %AR Cushion % Break- even Closing Date Closing Price days in trade
7/13/2016 ADM $43.82 short put $38.00 8/19/2016 closed 0.21 0.24% 7.20% 7/25/2016 0.12 12
7/15/2016 EMR $52.91 short put $48.00 9/16/2016 closed 0.25 0.21% 2.82% 8/11/2016 0.15 27
7/25/2016 HOG $53.09 short put $40.00 8/19/2016 closed 0.18 0.23% 20.53% 7/29/2016 0.09 4
7/28/2016 HOG $53.09 short put $45.00 8/19/2016 closed 0.27 0.31% 16.22% 8/4/2016 0.13 7
8/4/2016 MET $43.26 short put $35.00 9/16/2016 closed 0.33 0.49% 177.29% 8/5/2016 0.16 1
8/8/2016 GME $28.39 short put $26.00 9/2/2016 closed 0.4 0.77% 70.19% 8/12/2016 0.2 4
8/9/2016 GME $28.39 short put $25.00 9/16/2016 closed 0.33 0.72% 87.60% 8/12/2016 0.15 3
8/11/2016 HOG $53.09 short put $50.00 8/19/2016 closed 0.15 0.20% 10.43% 8/18/2016 0.05 7
8/12/2016 MET $43.26 short put $35.00 9/16/2016 closed 0.19 0.29% 17.38% 8/18/2016 0.09 6
8/16/2016 GME $28.39 short put $27.00 9/16/2016 closed 0.34 0.63% 32.83% 8/23/2016 0.17 7
8/18/2016 MET $43.26 short put $37.50 9/9/2016 closed 0.18 0.24% 17.52% 8/23/2016 0.09 5
8/19/2016 WSM $52.03 short put $45.00 9/16/2016 closed 0.3 0.33% 20.28% 8/25/2016 0.15 6
8/23/2016 VIAB $39.90 short put $37.50 9/16/2016 closed 0.25 0.27% 13.90% 8/30/2016 0.15 7
8/24/2016 GME $28.39 short put $28.00 8/26/2016 closed 0.15 0.43% 78.21% 8/26/2016 0.03 2
8/25/2016 MET $43.26 short put $37.50 9/30/2016 closed 0.31 0.40% 29.20% 8/30/2016 0.16 5
8/26/2016 WFC $50.55 short put $45.50 9/30/2016 closed 0.25 0.22% 26.74% 8/29/2016 0.15 3
8/30/2016 GME $28.39 $26.00 9/23/2016 closed 0.25 0.38% #DIV/0! 8/30/2016 0.15 0
8/30/2016 HOG $53.09 $47.50 9/16/2016 closed 0.47 0.57% #DIV/0! 8/30/2016 0.2 0
8/30/2016 GME $28.39 short put $26.00 9/23/2016 18 0.21 0.81% 12.28% 9.16% $25.79
8/31/2016 DAL $37.17 short put $34.00 9/23/2016 18 0.24 0.71% 11.20% 9.17% $33.76
8/31/2016 MET $43.26 short put $40.00 9/23/2016 18 0.3 0.75% 11.90% 8.23% $39.70
8/31/2016 DAL $37.17 short put $32.00 9/16/2016 closed 0.12 0.19% 68.44% 9/1/2016 0.06 1

In the future I will be able to just highlight the specific month.

My Current Holdings and Ratios

Company Ticker Shares Price Value Cost Basis Current Dividend Payout Current Expected Annual Income Yield on Cost
CATERPILLAR INC CAT 22.201 $81.69 $1,813.60 $75.34 $3.08 $68.38 4.09%
Community Trust Bankcorp CTBI 15 $36.85 $552.75 $34.07 $1.28 $19.20 3.76%
CULLEN FROST BANKERS INC CFR 10 $73.62 $736.20 $65.19 $2.16 $21.60 3.31%
Franklin Resources BEN 22 $36.15 $795.30 $34.53 $0.72 $15.84 2.09%
EMERSON ELECTRIC CO EMR 26 $52.91 $1,375.66 $48.39 $1.88 $48.88 3.89%
SONOCO PRODS CO SON 22 $52.61 $1,157.42 $36.81 $1.48 $32.56 4.02%
TARGET CORP TGT 28 $70.81 $1,982.68 $70.97 $2.40 $67.20 3.38%
PRICE T ROWE GROUP TROW 30 $69.27 $2,078.10 $69.45 $2.16 $64.80 3.11%
UNITED TECHNOLOGIES CORP UTX 20 $106.93 $2,138.60 $87.48 $2.64 $52.80 3.02%
195.201 $12,630.31 $391.26

Enough about me – How was everyone else’s month?!

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