September 2014 – Expiration Report

The expiration for monthly options is coming Friday, but I already closed my two September positions:

  • T – 2x 34.50 Put +$50
  • DE – 2x 82.50 Put +$97

I closed them today, because I will be travelling on Friday. Also I wanted to close before the FED announcement – maybe I overreacted a little bit.

The gain is very small and I’m not sure if it’s worth the risk. The implied volatility of quality dividend stocks is so low, the premiums are just not very high.

I also bought some REIT stocks:

  • O – 100x 42.40
  • ARCP – 400x 12.45 (I also sold 4x 12.50 10/14 Call for 0.25)

Realty Income (O) is between two strikes (40 and 45), so no good option was available. And forĀ American Realty Capital Properties (ARCP) I sold the October 12.50 call. My premium was $0.25 – which means an entry price of $12.20. If I’m getting called my win will be $0.30 (12.50 – 12.20) which is roughly 2.5 % in one month. If I still get the September dividend, then it’s 3.1 %. Not bad.