DGI Adventure 03-20-17 – Expiry Discussion and Miscellany

Last Friday was the third Friday of the month, which is when the monthly options expire. Of course once a quarter options and futures on both stocks and indexes all expire, and it’s called quadruple witching. Last Friday was also quadruple witching. Quadruple witching sounds really ominous, but there doesn’t seem to me to be… Read More DGI Adventure 03-20-17 – Expiry Discussion and Miscellany

DGI Adventure 03-14-17 Sold Cash Secured Put – SPDR S&P 500 ETF Trust (SPY) – $237.50 strike – Mar 15 Expiration

This trade was executed yesterday 03/13/17. I don’t go through my investment thesis process for index fund trades. The idea behind passive index investing is to completely give in to efficient market hypothesis, so there isn’t really any point in looking at a bunch of quantitative metrics. There’s also no warm and fuzzy or cold… Read More DGI Adventure 03-14-17 Sold Cash Secured Put – SPDR S&P 500 ETF Trust (SPY) – $237.50 strike – Mar 15 Expiration

DGI Adventure 03-13-17 Sold Cash Secured Put – Starbucks Corporation (SBUX) – $54.00 strike – April 07 Expiration

This trade was actually executed on Thursday 03/09/17. I didn’t get a chance to write about it until today. I didn’t complete my investment thesis process for this trade because I’ve already done that in June.   I’ve also sold a number of similar puts at varying strikes between $50 and $55. This is really… Read More DGI Adventure 03-13-17 Sold Cash Secured Put – Starbucks Corporation (SBUX) – $54.00 strike – April 07 Expiration

DGI Adventure 11-14-16 Sold Covered Call – Gorman-Rupp Co (GRC) – $30 Strike – Dec 16 Expiration

I wound up with 100 GRC shares by selling a cash secured put that expired in the money and was assigned to me. The put in question was sold back in September and expired a couple weeks ago. The strike price at which I got assigned was $25/share. The share price kept falling after I… Read More DGI Adventure 11-14-16 Sold Covered Call – Gorman-Rupp Co (GRC) – $30 Strike – Dec 16 Expiration

DGI Adventure 08-09-16 Roll Out Covered Call Option – Valero Energy Corporation (VLO)

VLO goes ex-dividend today, and the quarterly distribution is $0.60/share. I mentioned last week that I would be on high alert for a situation that could lead to early assignment. My covered call option, which had a strike price of $54.50, was about to expire on Friday August 12. VLO shares traded as high as… Read More DGI Adventure 08-09-16 Roll Out Covered Call Option – Valero Energy Corporation (VLO)

DGI Adventure 06-20-16 Sold Cash Secured Put + Investment Thesis – Starbucks Corporation (SBUX) – $52.50 strike – July 15 Expiration

This trade was actually executed on Thursday 06/16/16. I didn’t get a chance to write about it until today. Please visit the core philosophies article on my investment thesis process for a deeper explanation of the components of this article. Dividend Cycle SBUX will go ex-dividend in early August, and I would expect the payout… Read More DGI Adventure 06-20-16 Sold Cash Secured Put + Investment Thesis – Starbucks Corporation (SBUX) – $52.50 strike – July 15 Expiration

DGI Adventure – 04/14/16 Covered Call Option Roll Out – WTF Am I Doing?

Loyal readers will remember that I am short the two gold mining stocks in my portfolio. I sold covered calls on my ABX and AUY shares in early January. Since gold miners’ earnings are highly dependent on gold, their share prices are kind of like a leveraged exposure to the price of gold. Since an… Read More DGI Adventure – 04/14/16 Covered Call Option Roll Out – WTF Am I Doing?