I originally sold a LO put in February. Shares are trading well above the strike price of $37.50 so this put has expired over the weekend worthless, meaning I get to keep the entire premium.
Lorillard is a stock that I currently own and will continue to buy more shares and sell more puts against to keep dollar-cost averaging into. I would have had no problem if these shares were assigned to me. This is why I sell puts against companies that I'd like to own more shares of anyways. I don't have to worry about getting assigned shares since I'm picking a price that gives me a cost basis cheaper than current market values and one that I would be happy to pay.
The original trade:
02/27/13 Sold 1 LO Sep 21 '13 $37.50 Put @ 2.97; posted here
This options expired so I get to keep $297 in options premiums. This brings my total options premiums to $3433 for the year.
I currently have 12 open options positions and have already met my options goals of $3000. I met and posted this options goal in July. My options income is still ahead of my dividend income but I expect to catch up and pass it this month.
I recently wrote up an introduction to options for anyone interested, posted here
My options page has been updated accordingly.
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