The Investment Road to Freedom

February 12th, 2016 at 1:59 pm

Loyal3 Trades

I made some trades in my no commission Loyal 3 account this week. I had been meaning to sell my Viacom shares last month but kept onto them thinking they might recover but they did not. So this week I sold them all for about a $50 loss in total. With the cash from that sale I increased my positions in Apple (AAPL), Coca-Cola (KO) and started a new one in beer giant Anheuser-Busch (BUD).

Sales: $82.53

Sold 2.3247 shares of Viacom (VIAB)

Buys: $83

I bought 1.3941 shares of Coca-Cola (KO), 0.1384 shares of Apple (AAPL) and 0.0868 shares of Anheuser-Busch (BUD).

 

 

 

 

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February 4th, 2016 at 5:30 pm

This Week’s Trades

Did a few sells this week as well as a buy and an option trade.

Buys

Bought 6 shares of Disney (DIS) at $93.43 in my IRA account for a total of $569.53.

This brings my total Disney shares in my IRA to 25. My first purchase of the stock was in August at $111.05 and then again last month at $99.03. This recent buy takes my cost basis down from $106.52 to $103.74. The stock closed today at $95.41.

Option Trade

Starbucks (SBUX) STO 1 x Apr 2016 $65 Covered Call at $0.78. This earned me $63.02 after commission in my IRA account. My cost basis in the stock is now $51.88.

Sales

Sold 41 shares of Apple (AAPL) at $96.27 in my taxable account for a total of $3938.16. Total profit so far for this account is $398.93.

Sold 4 shares of Costco (COST) at $150.84 in my taxable account for a total of $594.38. P/L for this stock in this account is -$31.18.

So these two sales were due to me wanting to change the way my taxable account is used. I want this account to be just for selling puts and covered calls at least until the account is $100k – and that means stocks are in batches of 100 shares. My IRA will still be dividend growth as well as option trades. It was either buy 59 more shares of Apple or sell. Same with Costco – buy 94 shares or sell. These two stocks I love and will return to the account in the future but I want to grow the account as quickly as I can. It’s in the $7k range now so I have a long way before I hit $100k.

 

 

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January 31st, 2016 at 10:35 am

January 2016 – Month in Review

Wow January was a tough month for the market but with all the downs my portfolio came off much better than what I had expected when I totaled everything up.

New Purchases: $900.19

  • Bought 8 shares of Disney (DIS) at $99.03 each. This was in my IRA account.
  • In my Loyal3 commission free account I bought 0.7236 shares of Coca-Cola (KO), 0.357 shares of Apple (AAPL), 0.2381 shares of Disney (DIS) and 0.1305 shares of Hershey (HSY)

Sales: $1606.03

  • Sold 100 shares of Ruth’s Hospitality Group (RUTH) at $16.15. I was originally assigned these shares in May when my $15 Put was exercised. Total return for this trade including capital gains, dividends as well as Call and Put income that started in March is $210.14 or a 13.93% return.

Option Trades: $48.05

  • Ford (F) – STO 1x Feb 2016 $13 Put at $0.72 x 100. This earned me $57.02 after commission. This is in my IRA account.
  • Starbucks (SBUX) – BTC 1x Feb 2016 $65 Call at $0.04 x 100. This cost me $8.97 after commission. This is in my IRA account.

Dividends: $12.64

  • Disney (DIS) – $9.80
  • Viacom (VIAB) – $0.93
  • Wal-Mart (WMT) – $1.67
  • Nike (NKE) – $0.24

In 2015 I received $1.51 for this month. 2016 is a 737% increase!

Forward 12 Month Dividend Forecast: $521.72

Deposits: $1132.82

Investment Road to Freedom fund value:

The fund value stands at $43225.37 -0.70%

The breakdown of the individual accounts show

  • 401k = $15434 -3.59%
  • IRA = $16369 +2.50%
  • Taxable = $7477 -4.81%
  • Other = $1810 +10.23%
  • EF = $308 +0.33%
  • Lending Club = $526 -1.31%
  • Loyal3 = $1298 +7.27%

A slight drop of 0.70% considering the month we have had is not to bad. I’m working on removing the Lending Club account. I’ve had a good return with it but I believe it works better in a IRA type account and I don’t want mine there. For this year I want to get my 401K, IRA and Taxable accounts all above $20k each which I think I can do. A year ago my fund value was $33,958 which is just under a $10K increase.

Credit Card Debt: $13455 -0.33%

Home Improvements on a 0% card. Working on this.

Car Loan: $20859 -2.10%

Slowly paying this down. Long way to go.

Mortgage: $169596 –0.14%

Our monthly payment is $1239.90. According to Zillow the home is worth $272,000.

Income from Credit Card Rewards: $50

Everyone loves free money.

Net worth: $111,312 +3.06%

Summary:

Getting a Net Worth increase after this month was impressive! Despite the market being a difficult month there are a number of good things that happened – over $1k deposit, best January for dividends, debt all going down even if slowly and decent option income.

Hope everyone had a great month!

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January 24th, 2016 at 9:57 am

December 2015 – Month in Review

First off sorry for the long gap between posts. In the time away I’ve been working hard on building my wealth and from this point on-wards I aim to keep the blog up to date.

New Purchases: $108

  • In my Loyal3 commission free account I bought 0.5266 shares of Wal-Mart (WMT), 0.3865 shares of Disney (DIS), 0.3093 shares of Nike (NKE) and 0.0144 shares of Amazon (AMZN).

This was the first time that Amazon has been in my portfolio. It does break my rules of not investing in non dividend paying stocks but I like the company and even though I got in high it’s a very small investment and as the stock drops I will add more.

Sales: None

Option Trades: $254.05

  • Ford (F) – BTC 2x Jan 2017 $22 Calls at $0.04 x 200. This cost me earned me $12.99 after commission. This is in my taxable account.
  • World Wrestling Entertainment (WWE) – STO Apr 2016 $18 Put at $2.38 x 100. This earned me $223.02 after commission. This is in my IRA.
  • Starbucks (SBUX) – STO Feb 2016 $65 Call at $0.59 x 100. This earned me $44.02 after commission. This is in my IRA.

Dividends: $81.83

  • Ford (F) – $45
  • Ruth Hospitality Group (RUTH) – $6
  • McDonald’s (MCD) – $28.48
  • Microsoft (MSFT) – $0.55
  • Coca-Cola (KO) – $0.78
  • Hershey (HSY) – $1.02

Highest month ever!!!!!!

Forward 12 Month Dividend Forecast: $521.72

Stock Splits:

  • Nike (NKE) 2:1

Deposits: $704.29

Total deposits for the year ending with $9073.24 beating 2014 by $1315. Still I wanted $12k so I have some work here for 2016.

Investment Road to Freedom fund value:

The fund value stands at $43529.62.

The breakdown of the individual accounts show

  • 401k = $16009
  • IRA = $15969
  • Taxable = $7855
  • Other = $1642
  • EF = $307
  • Lending Club = $533
  • Loyal3 = $1210

A slight drop of a few hundred bucks from November. I’m counting the days when I get over the $50k mark.

Credit Card Debt: $13500

Home Improvements. Working on this.

Car Loan: $21307

Slowly paying this down. Long way to go.

Mortgage: $169837

Our monthly payment is $1269.24. According to Zillow the home is worth $270,000.

Income from Credit Card Rewards: $100

Total for the year was $724.80 which was up from 2014 but down from 2013 numbers.

Net worth: $108,881

Summary:

I’m pushing hard to break that $50k mark and I had really hoped to do it in 2015. For my Net-worth it feels good to be in 6 figures!

Hope everyone had a great month!

 

 

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March 11th, 2015 at 12:26 pm

Option Trade – RUTH

Today I added Ruth’s Hospitality Group Inc to my portfolio for the first time. The company owns many restaurants worldwide with the biggest being Ruth’s Chris Steakhouse which is a high priced place to eat. RUTH is very new to the dividend game with May 2013 being the first dividend payment they offered. That rate was $.0.04 and they raised it to $0.05 in Mar 2014 and again in Feb 2015 to $0.06. I consider this purchase to be the highest risk company in my portfolio but it’s a company I like very much and hope to be part of for years to come. Total revenue (dollar amounts in thousands) in 2012 was 310,285, 322,354 in 2013 and 346,097 in 2014. Market Cap stands at $525.25 million and while I normally don’t get involved in companies this small I believe they have growth ahead of them.

  • With the stock trading at $15.11 I sold to open 1 x Apr 2015 $15 put at $0.49 x 100 which after commission earned me $34.02 or 2.27%. This is in my IRA.
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March 2nd, 2015 at 3:37 pm

February 2015 – Month in Review

When the month of February started I had a feeling it was going to be a good month for my portfolio. January was a good month built off new deposits of over $1k and I wanted to continue that momentum.

New Purchases: $115

  • In my Loyal3 commission free account I brought 0.1474 shares of Viacom (VIAB), 0.3486 shares of Disney (DIS), 0.2913 shares of Wal-Mart (WMT), 0.1899 shares of Hershey (HSY), 0.3581 shares of Microsoft (MSFT) and 0.1106 shares of Starbucks (SBUX)

Sales: None.

Option Trades: $21.08

AT&T (T) – BTC Feb2015 $34 put at $0.15 x 100. This cost me $29.27 after commission. This is in my IRA account.
AT&T (T) – STO Mar2015 $34 put at $0.54 x 100. This earned me $39.02 after commission. This created a net credit of $9.75.  This is in my IRA account.

Ford (F) – BTC Mar2015 $16 call at $0.64 x 100. This cost me $78.97 after commission. This is in my taxable account.
Ford (F) – STO Jan2017 $22 calls at $0.53 x 200. This earned me $91 after commission. This created a net credit of $12.02. This is in my taxable account.

Dividends: $19.32

  • Apple (AAPL) – $19.32

First ever dividend in the month of February. Total dividends for the year stand at $20.83.

Forward 12 Month Dividend Forecast: $368.82 +9.49%

Ford (F) raising the dividend from $0.125 to $0.15 a share helped push this up greatly this month. Looking forward to breaking the $500 mark this year.

Deposits: $1429.04

Out of this $1429.05, $820 went to my IRA for the 2014 contribution year, $482.04 for 401K, $12 to Lending Club and $115 to Loyal3. My immediate goal is to reach the full $5500 allowed for the 2014 IRA year – I have until April 15th to do this and I am currently at $4340. Total deposits for the years stands at $2504.04 or $1252.02 a month. My goal is $1000 total deposits a month so I am ahead of my plan.

Investment Road to Freedom fund value:

The fund value stands at $37084.11. +9.21%

The breakdown of the individual accounts show

  • 401k = $15325.88 +7.79%
  • IRA = $10409.86 +13.75%
  • Taxable = $8601.99 +9.30%
  • Other = $1824.27 -5.69%
  • EF = $281.95 +0.49%
  • Lending Club = $478.13 +3.32%
  • Loyal3 = $162.03 +286.89%

My highest total ever and hey $1k for each of my 37 years of age! Pushing for that $40k mark. Absolutely delighted to get the IRA over $10k for the first time.

Credit Card Debt: $0

Car Loan: $25788.10

Slowly paying this down. Long way to go.

Mortgage: $172199.01

Our monthly payment is $1269.24

Income from Credit Card Rewards: $95.77

This was from my Amex Costco card. Total rewards for 2015 stand at $195.77

Summary:

I’m very close to hitting the $5500 deposit for my Roth IRA for the 2014 year – I have until April 15th to make this goal and if I do it will be the first year I have maxed out my IRA. Been a really good month. Hopefully doing my taxes will not bring me back down!

Hope everyone had a great month!

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February 20th, 2015 at 4:38 pm

Option Trades – Ford and AT&T

Yesterday I did two option trades with Ford (F) and AT&T (T).

First up is AT&T. I brought back my Feb 2015 $34 put for $0.15 costing me $29.27 including commission. I then sold the Mar 2015 $34 put for $0.54 earning me $39.02 after commission for a net credit of $9.75. The reason for this trade was that today was expiration date and I did not want to own the shares yet until I had my cost basis down lower. I contemplated letting my Feb $34 put expire but I was not sure if it would close above $34 – which it did being $34.08. There was no dividend involved which could have swayed me to owning the stock now. The next ex-dividend date will probably be around 3/27. I started selling puts on AT&T in December and so far have earned $66.79 and my cost basis is currently $33.33. This is in my IRA.

Ford is a big player in my portfolio with 200 shares in my taxable account and 100 in my IRA. Yesterday in my taxable account with the stock at $16.45 I brought back my Mar 2015 $16 covered call for $0.64 costing me $78.97. I then sold two Jan 2017 $22 covered calls for $0.53 earning me $91 for a net credit of $12.03. In this account I’ve owned Ford since March 2012 and I expect it to one day be my first stock that I get the cost basis down to zero. One day many days from now!

Like with all my option trades I always look back and see if I could have done things different. When I say different I mean better! With T I had the opportunity to buy back my put at $0.05 on Tuesday and with my broker at that price and below for options you pay a reduced fee ($4.95 compared to $14.95). I probably should have brought it back at that point but I thought it would end the week above $34. It looked like it would then Wednesday to today it dropped a little but finally ended up over $34. No big deal still making profit until I’m ready to accept the shares. But I want it to be on my terms.

My Ford play I could have brought back the one March $16 covered call and sold two $17 covered calls a little further out. But I went with safety of my shares first and went to $22 which it has not seen since the beginning of the century. If it gets back there I will be delighted. If the $22 gets under-threat then I will buy back and go further out at that time. In this account Ford has earned me $98.50 in dividends since March 2012 and $98.19 in options income for a total of $196.69.

 

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