January was a decent month for our portfolio considering we still have a lot of cash to invest and we are not selling options on a big part of our portfolio. Present anchors in our portfolio are SPDR Gold Trust (ETF) (NYSEARCA:GLD) ,Vanguard Total Bond Market ETF (NYSEARCA:BND) ,Market Vectors Agribusiness (ETF) (NYSEARCA:MOO) & PowerShares DB Agriculture Fund (NYSEARCA:DBA). These positions we will hold indefinitely and not sell covered calls on them as they are not volatile and the risk doesn’t justify the rewards.
Ok on with the results. First up is equities. Normally we don’t make much money here as stocks are not called away from us. However we made some income in (NYSEARCA:GDXJ) as it was “called away” from us. This means the stock was above the call strike price at expiration. We still made a capital gain of $332 on the stock or ETF. The good thing is that (NYSEARCA:GDXJ) has come back down in price so we are long again with covered calls sold against it
Next up is options. Here is the breakdown of our options income in January
Ok so we made $2,026 income from options in January. Combined with our profits from stocks or ETF’s, the sum total was $2,358. As you can see from the screen-shot above, the only loss in our options trades was the GDXJ13FEB-26Call. This trade realized a loss of $158 but when you couple it with the capital gain of $332 in the (NYSEARCA:GDXJ) trade above, the overall profit was $174. we structure our trade to make a profit even if our underlyings are called away. I can’t stress enough the importance of placing GTC trades ( Good Till Cancelled). This lets our portfolio run on autopilot so profits are taken automatically. The portfolio is designed to not make losses. We hold our unrealized losses, we trade small, collect our dividends and wait for them to turn around.
Dividends were low as we didn’t have much underlyings in the portfolio in December. I expect dividends to be much higher in the forthcoming months.. All in all income for January was $2,448. This income wouldnt have been realized ( with the exception of Dividends) if we didn’t actively manage our portfolio
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