Saturday, September 1, 2012

YTD dividend income as of Aug 31, 2012

Here is my YTD dividend income as of Aug 31, 2012

2012 dividend income:

1) Jan: $2,150
2) Feb: $1,068
3) Mar: $3,070
4) Apr: $1,986
5) May: $1,083
6) Jun: $2,528
7) Jul: $1,714
8) Aug: $1,208

Total of $14,807 were received from January to August 2012 and all dividends were reinvested.

Some stocks such as MCD, MSFT and PM  in my portfolio which I sold "out of money" covered call options to boost extra income and lower the initial purchase cost of the underline. It has been working according to my plan.

Recently I allocated some fund in this account to write protective put options as an experiment to bring in more cash. The result of this experiment was fair at this point. It either hit or missed. But I strongly believe it will be fine with continuing practice and better stock selection.

The protective put option is to sell "naked put options" on a particular stock with proper cash secured in the account. The premium is paid from the sale of the put options and deposits in the account as cash balance. The protective put options writing is allowed for IRA account.

Put options that I was able to make profits were A, MCD, and PM. Options that I didn't have such luck were FB, NFLX. The way that I handle the losers is to continue rolling the losing options to future months for additional premium or minor loser in order to buy more time for the underline stock to rebound. This is the case for both FB and NFLX.

Here is the site that I recommend for additional information about selling naked put options: "". This site is maintained by a great woman who is doing it for the last 40 years with tremendous success. A must visit site if you are interested in selling naked put options for steady income. I have no affiliation with her site but I am a happy frequent visitor there. 

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