The Investment Road to Freedom

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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6
  • Investment Hunting
    11:00 am on February 6th, 2016 1

    Nice buy on the Disney stock. This stock has dipped significantly. However, Star Wars momentum and continues Pixar hit movies should help DIS stock rise again.

  • investmentroadtofreedom.com
    1:45 pm on February 6th, 2016 2

    Thanks IH. Disney is one of my favorite companies. And we still have 5 more Star Wars movies to come!

    Thanks for stopping by!

  • DivHut
    9:13 pm on February 6th, 2016 3

    Thanks for sharing some of your recent moves in your accounts. Like you, if I go the options route I only plan to sell covered calls or write puts to enter positions. Do you have a post or page where you outline your basic options strategies and trades? For now, I am exclusively a dividend growth investor but options interest me.

  • investmentroadtofreedom.com
    9:22 am on February 7th, 2016 4

    Hi DivHut, I’m working on a post that has my strategy that should be up in a few days. Thanks for stopping by!

  • A Christian Investor
    7:16 am on February 12th, 2016 5

    I had contemplated picking up some shares of DIS as well, but the dividend yield is still a bit low for me. It’s definitely at great prices right now especially if you are going for the buy low, sell high strategy.

  • investmentroadtofreedom.com
    12:11 pm on February 12th, 2016 6

    Hi CI, The dividend is low but the company is steady. Hoping they raise it in the future.

    Thanks for stopping by!