XOM covered call closed

Yesterday afternoon I decided to close out my covered XOM call. The details can be seen above.

Originally I sold a $90 XOM call and received a $237.30 premium. Since Exxon was trading around $82 yesterday and I had essentially earned 72% of the premium after subtracting all fees, I decided to buy back the call for $67.70.

This left me with a net profit of $169.60.  Not too bad especially when combined with the $336 ESV call profit also shown in the picture above.

XOM has traded as high as $96 this year which put me "upside down" on this trade most of the year. For a while I was concerned that I might have to sell the shares at $90.00, but the shares came back down and I decided to take the option profit and remove the possibility of losing the shares.

I was extremely fortunate with my timing as XOM is trading up about $3.50 today at a price of about $86.50. Most likely all of the option profit would have vanished with today's price action.

I am tempted to resell another call and start the process all over again.

DEFY MEDIOCRITY

Recent Buy ---- More KO

Today I added shares to my KO position.

• KO:  40 shares @ $42.02 --- Yield  3.33%

Total capital invested is $1687.75 and this purchase will add $56.00 to my yearly dividends.

My KO share count is now 160 spinning off $224 of dividends for me. I will probably add to other companies going forward since this is becoming one of my larger positions.

TGT is also looking pretty attractive here around $67 and I'm still thinking about initiating a position in MO as well. JNJ, MCD, and PG are also noticeably absent from my portfolio. They will start showing up eventually.

Forward dividends are now around $4050.00.

DEFY MEDIOCRITY

9 Day ESV Call Option Trade

I decided to buy 15 $7.00 ESV Oct 21 2016 Calls a couple of weeks ago and closed the position last week.

Basically I bought 5 $7.00 Calls at $.55 and then an additional 10 Calls at $.50 for a total of 15 Calls at a total investment of $800.15. I held the calls for a little over a week and then dumped them at $.75 for a net proceed of $1136.80.

For this 9 days worth of work I picked up a net $336.65 in profit. This is my first option transaction since I excercised a $32 call option to purchase 100 shares of M back in July.

DEFY MEDIOCRITY

Recent Buy --- More TROW

Today I had my $65.99 limit order filled.

• TROW:  28 shares @ $65.99 --- Yield  3.27%

Total capital invested is $1854.67 and will add $60.48 to my yearly dividends. This increases my share count to 73. One more purchase should bring me up to 100 shares.

I am also watching MO very closely and would love to add shares. I last purchased MO in 2013 for about $30 and it is now more than double that amount. Thanks to some outstanding dividend raises, the yield is still close to 4%. What a machine!

Forward dividends still holding around $4k after the VIAB dividend cut.

DEFY MEDIOCRITY

Dividend Beasts --- XOM & KO

Today I added to two monster businesses in my portfolio.

• XOM:  20 shares @ $83.89 --- Yield  3.58%
• KO:  40 shares @ $42.42 --- Yield  3.30%

Total capital invested is $3388.44 and the combined yield is 3.42% and will add $116 to my yearly dividends.

Two bread and butter companies that are dividend creating machines. These will be cornerstones in my portfolio for decades to come. 

Milestone 

$4000 forward dividends. Nowhere near my all time high of $18k reached last year, but I am on the hunt and will be aggressively adding to my forward dividend total.

DEFY MEDIOCRITY

August 2016 Income & Expenses

The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.

Day job (take home pay) --- $11890
Dividends/Interest ---  $185

Total net income --- $12075

Expenses --- $10806 (Taken from Mint)

Savings  $1269 --- Rate  10.51%  (DOUBLE OUCH!!)


What in the hell happened?? What didn't is the better question!

First the good news! I had my best income month of the year and even better I hit the payroll tax limit in July so I got to keep an extra 6% or so which helped increase my take home pay. Business is also booming in September, so hopefully most of Houston's woes are behind us.

Now for the expenses....The biggest expense can be seen in the picture above. While it is true that I prepaid all the hotel and theme park related expenses a few months ago, that as many know was just the beginning.

Since we took a road trip, additional hotel, gas, and food expenses were incurred. On the way back to Houston, we hit the Baton Rouge floods and had to take shelter which added another few hundred to the expense totals.

Those were the small expenses. If you think you are going to take a trip to Disney World with two kids and get out cheap, you really need to pull your head out of your ass!! Mickey and his crew are very well trained at extracting every penny they can out of your pockets. LOL  I have been to theme parks before, but nothing compares to DW. Literally every major ride ends inside a gift shop! I spent so much money on photo packages, Mickey ears, t-shirts, backpacks, and a ton of other cool shit.

On top of the onslaught of merchandise, the payment method was always a quick easy scan of my DW bracelet which might as well be a portal which connects my bank account to their cash registers.

All in all, it was a fantastic month and the memories will last a lifetime! The whole experience is another reason I recently started to accumulate Disney stock. They have one of the best run companies I have ever seen and create an insane experience for everyone who visits!!

Other notable expenses included a new refrigerator ($1800), yearly homeowners insurance, 6 month auto insurance, and back to school expenses. The month was a perfect storm of expenses, unfortunately I've hit several of these storms already this year. Oh well, life is about the living and I have had some of the best adventures this year.

I can't wait to go back in a few years...

There is a big world out there and I want to see as much of it as possible!

DEFY MEDIOCRITY

Recent Buy --- WFC

Today I added to my Wells Fargo position.

• WFC:  35 shares @ $45.31 --- Yield  3.35%

Total capital invested is $1592.77 and will add $53.20 to my yearly dividends. I was really happy to see the share price fall again today since I didn't add any shares a couple of days ago. In the long run this bank will be fine and I am happy to get in at such a great yield. My WFC share count is now 171.01.

Adding shares of great companies the past few weeks has felt really good and I love seeing the forward dividends climbing!! $4k is within striking distance. I'm feeling pretty pumped up right now!!!

Forward dividends are $3900.

DEFY MEDIOCRITY

Recent Buy --- TROW

Today I added to my TROW position.

• TROW:  24 shares @ $66.93 --- Yield  3.23%

Total capital invested is $1613.23 and will add $51.84 to my yearly dividends.  This purchase increases my TROW share count to 45.

I was bouncing around between XOM and WFC this afternoon and then decided against adding to one of these two simply because they are two largest positions. 

WFC is still really enticing, so I may still add a few shares before the end of the week.

Forward dividends are $3850.

DEFY MEDIOCRITY

One more purchase --- Easing into EMR

I just couldn't help myself. I had to initiate a small position in EMR.

• EMR:  30 shares @ $50.87 --- Yield  3.74%

Total capital invested is $1533.05 and this purchase will add $57.00 to my yearly dividends.

Well if I had waited a few hours I could have save $50 on my VIAB purchase. That's ok!!! I used the additional market drop (close to 400 Dow points) to pick up some shares of EMR. I was so close to choosing T, but EMR won on a coin flip. Hopefully next week continues to bring good buying opportunities. I still have a shitload of dry powder!!

What a great way to start the weekend!!

Forward dividends are $3800.00

DEFY MEDIOCRITY

More grinding......VIAB purchase

Today I doubled my Viacom position.

• VIAB:  40 shares @ $38.50   Yield  4.16%

Total capital invested is $1546.75 and this purchase will add $64.00 to my yearly dividends. I now have 80 shares.

High yielding REITs, utilities, and telecoms are starting to look interesting. Maybe another interest rate hike will take a few dollars off T, SO, VZ, and WPC. It will be fun too watch!

Forward dividends are $3750.

DEFY MEDIOCRITY

Pipeline construction continues --- DIS purchase

Today I added more DIS shares to my portfolio.

• DIS:  18 shares @ $93.60 --- Yield  1.52%

Total capital invested is $1691.73 and will add $25.56 to my yearly dividends.  The yield is obviously low, but so is the payout ratio at 25%. In five years this company could easily have a 3% YOC. 

My share count is now 35 and I will continue adding until I reach 100 shares.

I keep watching Dividend Hustler kicking ass over there and he's really getting me highly motivated!! I'm not jumping into the deep end of the pool yet, but I feel $5k in forward dividends by year end and maybe $10k by 2017 year end.

Stay tuned!!

DEFY MEDIOCRITY 

Brick by boring brick --- KO purchase

Today I doubled my position in Coke.

• KO:  40 shares @ $43.59 --- Yield  3.21%

Total capital invested is $1750.51 and will add $56 to my yearly dividends.  My Coke share count is now 80 and will be churning out over $100 a year going forward. How cool is that?!

There is really no news coming from Coke recently. The stock is probably overvalued a bit, but the dividends are stable and increasing. I really like this type of company and will be adding shares year in and year out for decades to come. 

I almost added shares of VIAB, but the shares spiked up on me. I may still add some shares hopefully closer to the $38 range. The pipeline is starting to come back nicely!!

Forward dividends are $3650.

DEFY MEDIOCRITY

August 2016 Recap

While July was rough ($0 dividends), August was much better as I received $185.54.  As always, I reinvested all the dividends back into the companies paying them.

At first glance, HCP was the monster payer this month and was responsible for over half of my total income.  The good news is the dividends are beginning to smooth out as I received payments from four companies in August as opposed to only HCP in May. Ideally I would like to have at least 10 different companies paying in the "off" months with no one company contributing to more than 10% of the total. Time and patience will take take of this.

As you can see I also added $6865.01 in fresh new capital which increased my forward dividends by $303.74. I know that I am probably only about 20% of the level I was at this point last year. That's ok! I still have a ton of dry powder to work with and will continue to ramp up the portfolio. In fact I am much further along than I anticipated I would be. I was originally hoping to reach $3000 in forward dividends and now may surpass $4000 by year end. Of course then comes 5,7.5, 10, 15 etc.

The hamster wheel continues to spin. :-)

Forward dividends are $3600.

DEFY MEDIOCRITY

First September Buy --- FLO

Today I initiated a small position in FLO.

• FLO:  120 shares @ $14.62   Yield  4.38%

Total capital invested is $1760.93 and will add $76.80 to my yearly dividends.

If FLO drops below $14, I will most likely double down on the position. 

I have been watching HRB closely as well and it is drifting near its 52 week lows. The yield has now reached 4%. People will always pay taxes and the tax code will always be confusing to most, so I think HRB will weather their temporary operational storm.

Forward dividends are around $3600.

DEFY MEDIOCRITY