September Puts Options Trades Update #5

Small and large dividend stock and ETF investors can use covered calls and puts trades to generate monthly income from options premiums and options trading.

By Donald E. L. Johnson

Cautious Speculato

• September’s 19 cash secured puts options trades produced annualized returns on risk of about 14.607%.

• Four puts trades were closed early to avoid assignments.

• Five puts were assigned after the underlying stocks closed below the puts strike prices.

• October expiration covered calls will be sold on the assigned stocks.

September 2023 expiration cash secured puts options trades generated 14.607% annualized returns on risk, down from August RoR of 15.984%.

Click on image and zoom in for better views of the data.

During September there were 19 puts trades on 17 stocks and exchange traded funds. There were 16 puts trades on 16 equities that expired in August.

Accenture Plc. (ACN) puts, which were sold for $1 a share, were bought back for $0.35 a share to avoid having them assigned after the company reported disappoint results and lowered its guidance. The ARoR on the 17-day trade was 4.5%. General Dynamics (GD) and Generac Holdings Inc. (GNRC) puts also were bought back early at profits to avoid assignments when it looked like they might be assigned.

I took assignment on four trades when the stocks and ETFs closed below their stock prices. The assigned stocks were Dollar General Corp. (DG), Merck Co. (MRK) and Visa Inc. (V). The assigned ETFs were S&P Biotech (XBI) and S&P 500 Consumer Discretionary ETF ((XLY). I’ve sold covered calls on XLY and will sell covered calls on the others next week.

Ten puts options expired worthless as planned because the stocks’ prices closed below their puts’ strike prices on the last days of trading those puts options. They included Danaher Corp. (DHR), Devon Energy Corp. (DVN), Kraft Heinz Co. (KHC), Moderna Inc. (MRNA), ), Microsoft Corp. (MSFT), Nemont Mining Corp. (NEM), Visa Inc. (V). Vertex Pharmaceutical (VRTX), S&P Energy Sector SPDA (XLE) and Exxon Mobil (XOM).

Next week I’ll roll many of these puts trades forward into puts options trades that will expire in October. The October puts trades will be updated after I complete most of the planned trades on Monday or Tuesday.

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Beware. Like all investing, trading stocks and options is risky. I’m an active private speculator who trades covered calls and sells puts on stocks for my accounts. I am not a professional analyst nor a financial advisor. I don't take and won't take responsibility for how other people trade. This article is for educational purposes only. It is not advice. The data presented looked accurate at publication time except for intra-day fluctuations, but I can’t guarantee the accuracy. Traders should do their due diligence. I reserve the right to trade any of the listed stocks and options at any time. I receive no compensation for producing this content nor for any links.