Markets rebounded at the end of November

The markets ended with an incredible huge rebound at the end of November and I will take it anytime.

My November total dividend income in the IRA account is $1044 and the portfolio is up 2.8% since mid Oct.

Sold call options expiring on Dec 17 are:

1. CVX
2. KO
3. JPM
4. MCD
5. MO
6. MSFT
7. PM

Hope to accumulate more shares with dividend reinvested and will see how it goes.

Hanging in there

As the markets continue to drop, my IRA account balance is approaching to my mid October entry level. Have to say that I had a good run and I will continue to hold. I will wait for the bounce back and dividend payout going forward.

Rollover options to next month

My IRA portfolio is doing ok despite the recent market volatility. I have collected about $1000 dividend payout since mid October and the dividend was reinvested back into the stocks without commission. I have closed all the covered options expiring tomorrow and roll it over to next month to collect more premium. So far it works as planned. New covered options expiring next month are:

1. MSFT
2. MCD
3. CVX
4. PM
5. MO
6. JPM

Added JPM in my portfolio

The markets dropped big the last two days and I took an opportunity to buy some JPM shares and wrote a covered call option. I just missed the dividend payout last month so I have to wait for 2 more months then.

October is about to end and it's has been the best October for the stock markets since 4 decades ago and I am glad that I am fully invested in my IRA account at this point. Every indicator shows that the market is on the way up from this point (S&P closed above 200 MA, VIX closed below 25 etc). Come Nov 1 after my ETF bonds such as IEF, AGG and TIP Ex-dividend date, I will reallocate most of it with stocks like MCD, KO and CVX to anticipate the year-end rally into 2012. At the same time, I will write some covered calls with these stocks which I already own to earn some extra income along with average of 3% dividend.

Sold covered call with MSFT

Yesterday I sold 20 covered call of MSFT with strike price at $28 expires on Nov 19 for $.52 and collected $1040 before commission. My average purchase price for MSFT was $27 so I have some room to spare. MSFT will have ex-dividend on Nov 15 and I will collect $400 quarterly dividend. If it hits above $28 on Nov 18 and my call option gets taken out, I still make some nice profits from it. If it does not hit $28, I will write another call option for December.

Fully invested in my IRA account

The rollover to my IRA account has completed and now I can purchase my favorite stocks for dividend income purpose. I just purchased 32 stocks as my entire portfolio and here is the core 12 stocks: ABT, AGG, COP, CVX, ED, IEF, JNJ, KO, MCD, MO, MSFT, and NLY. The entire portfolio will generate combined returns of about 4.5% annually and all dividends will be reinvested. Also, I will write some call options to generate extra income from stocks such as MSFT. One good thing about MSFT is that it has weekly options so I can keep writing out-of-money (OTM) calls every week if it falls in the right price range. If MSFT drops below my purchase price, I just sit there and collect my 3% dividend annually.