Weekly Roundup - September 3, 2016
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Considering that I'm not investing any fresh capital at the moment this was a busy week for my portfolio. For starters there were three dividend increases this past week which is always great to hear. I've covered the first two already and the third will be out over the next few days.
If you remember from last weeks roundup I was contemplating what to do with some of my positions. The first move this week was with my ESPP shares. On Tuesday, August 30th I sold to open 1 call option with a $49 strike that expires on November 18th for $0.89. I had to move further out of the money because my cost basis is higher than the current share price by a pretty hefty amount and because of the odd taxation on ESPP shares I need to sell them at a gain. Sadly they're in the limbo range where I could pay taxes on gains that aren't really there. So yeah if I'm going to pay taxes I want it to actually be on a gain.
My goal with this call option was just to collect option premium while I wait for the share price to recover. The oil field is still very much in flux and 10%+ weekly moves aren't that surprising, but the strike price was far out of the money so it was worth the risk. After commission and fees I collected $81 in cold hard cash that I get to keep whether the option is executed or expires. So far so good too as the share price has declined since the option was opened and I could buy back the option after just 3 days for $0.55 and capture over 30% of the premium although I'm happy to sit and wait for time to pass.
I also closed out one of my positions yesterday which is sad since I've almost owned the shares for 3 years, but there's changes on the horizon for the company and basically I'm not a big fan of what's coming up. I'll go into a lot more detail next week when I highlight the sale in detail.
There's not much that interests me to buy outright in the market right now so my plan for the proceeds is to continually write put options on a position until the shares are put to me and then turn around and write calls. Wash, rinse, repeat. This will boost up the cash flow for my portfolio since I'll only do this with quality dividend growth companies.
There's also the possibility of trimming or closing some other positions over the coming weeks with at least 3 other positions being thought on.
On to the Roundup
In case you missed them, here's the posts from Passive-Income-Pursuit over the past week.
- Seeking Alpha With Realty Income, Hardly on Seeking Alpha
- Dividend Growth Investing at Work - Beaming Up Higher Dividends
- Dividend Growth Investing at Work - Loonie For Dividends
- Dividend Update Preview - August 2016 Infographic
Once again I'd like to say thanks to each and every one of you that read, commented, and shared posts from here this past week. I think this dividend growth investing and financial independence community is amazing and the openness from everyone is awesome. Thanks again!
Special thanks to More Dividends for including me in his new Different Minds Series.
Now on to the links!
What are your Investment Goals? by Dividend Growth Investor
Market Timing - Waiting for that Fat Pitch by FI Fighter
Outlook for September 2016 by Roadmap2Retire
Recent Buys by Income Surfer
How To Pick Dividend Paying Stocks by Dividend Ladder
Recent Stock Purchase August 2016 by DivHut
Early Retirement Isn't For You by Done By Forty
September 2016 List of Dividend Aristocrats by Sure Dividend
Your Advantage as an Individual Investor by Financially Integrated
Confessions of a Recovering Trader by DivGro
Choosing People Over Money: The Story of Our Rental Property by Our Next Life
Also, if you're looking for investment ideas, A Frugal Family's Journey keeps a list of stock analyses and recent buys from fellow bloggers.
I hope you all have a great weekend!
Image courtesy of Gubgib via FreeDigitalPhotos