My income statement

[Dmoney]

My main investment goal is to boost my "passive" income over time, so I'm going to try to post monthly charts showing the growth in my portfolio income.

My strategy includes long positions in dividend paying stocks, covered call writing and cash secured (or margin secured) put writing. Going forward I'll adjust my strategy as I see what works and what doesn't, and as I learn more about options and the market in general.

For record keeping, I record dividends when they appear in my account, and I record income from option sales on a straight line basis over the life of the option (If I sell an option on November 30 with a January expiry, the income is proportionally attributed to December and January).

If I sell an option or it is exercised for a loss, I'll count it against income if and when the loss is realized (ie if I sell a put and it gets assigned for a loss, I hold and sell calls so income continues to flow. If a call is assigned below the strike price of the assigned put, the difference will count as negative income).

I've been recording dividends since March 2010 and Option writing since June 2011. Hope this gets some interest and generates some discussion.




Here's where I stand currently. I'm looking to grow both my option and dividend income substantially over time.

Also, what's the best way to get charts/graphs from excel into a post?

[HaroldCrump]

You are missing the Y-axis, Dmoney

Also, what's the best way to get charts/graphs from excel into a post?

Whenever I have posted something from Excel on the forum, I have done screen print > Save as JPG > Upload to flickr or similar site > paste link.
Not sure if this is the best way...takes about 2 - 3 mins. I think

[Dmoney]

You are missing the Y-axis, Dmoney

Musta slipped my mind . It starts from a VERY low level though so the first months are misleading. When I get a bit more history behind me I'll cut them off so it doesn't make me look like Buffett.

Whenever I have posted something from Excel on the forum, I have done screen print > Save as JPG > Upload to flickr or similar site > paste link.
Not sure if this is the best way...takes about 2 - 3 mins. I think

I did the same and it's a little bit of a pain. Oh well, that's life.

[Dmoney]

Updated with a Y-axis, just for you Harold . That and I guess it's always more interesting with numbers. I also included my latest trade.

Sold 5 puts on Telus today. Jan 54 strike price. Want to buy Telus for yield and some growth opportunity, but figure that by selling puts until I get assigned I can maximize my yield. I'll miss the December dividend ($0.58) but instead got $0.93 per share for the puts.


Based on today's close of $55.67, my annualized yield is 13%. Will roll over the put in January if I don't get assigned, or write the covered call if I do.

[Causalien]

Oh oh.. The secret is out on how profitable options are...

[Dmoney]

Let's hope so. Only 6 months in so it's a little to early to tell. Will compare my returns with simple buy/hold to see how I do at year end.

[Homerhomer]

I've been recording dividends since March 2010 and Option writing since June 2011. Hope this gets some interest and generates some discussion.

I think it would garner more attention in the more active investment forum, and since it touches on dividends and options it would be appropriate to post it there.

[Dmoney]

Well, I'll leave it here for now until it's a little more comprehensive, then will consider moving it I suppose. I figure it belongs in money diaries though as it's going to chronicle my experience for the next little while at least.

[Dmoney]

I took advantage of a strong day for TLM, buying back my Jan 14 calls for $0.09 and selling March 13 calls for $0.71. I removed the $0.09 plus commissions from December and January income then spread the income from the $0.71 across Dec, Jan, Feb and March.

I've also added in my expected Dec. dividend income.
I will update actual dividend income as well as a net worth update closer to Jan 1.

[Dmoney]

So another year come and gone, a good one overall, quite eventful.

Graduated university with a degree in finance, got a contract job and two months in got a job offer in Toronto with much better prospects so I made the move in July.

Somewhat expensive starting up in a new city and making the transition from living at home (rent free) and going to school, to working crazy hours and living in downtown Toronto paying exorbitant rent.

I have tracked my finances in quite some detail from early June, and one goal for 2012 is to have everything tracked in even more detail, some of which I will be posting here.

For December I increased my net worth by 2.13%

Assets
Cash: $11,593 ($5k primed for TFSA in Jan)
TFSA: $17,309
Unregistered account: $70,432
Employee share plan: $1,500 (It's actually slightly lower but I don't have online access yet to get the accurate number so I'm recording at book value at the moment)


Liabilities
Margin: $5,975

Net Worth
$94,859

I've been working and saving since I was extremely young (mowing lawns, raking leaves, shovelling snow), got my first 'job' as a camp counsellor when I was 12 and never looked back. Had all my savings in mutual funds for about 10 years and have learnt my lesson there.

I now have a job in equity research and love that I am connected to the financial markets more or less 24/7.

Going forward - goals for 2012:

Net worth target: $150,000 - Ambitious but a few things should hopefully get me there.
-I will hopefully get a raise sometime in the first half of 2012
-Two semi-annual bonuses, which if the past is a good indicator should sum up to roughly my base pay
-The girlfriend, who I live with, hopefully finishes school and gets a job, should let me save more

Savings targets:
-50% of after-tax base pay (~3,700/month, so save $1,850)
-100% of bonus pay - ????? haven't been here long enough to know how much I should reasonably expect

Other goals:
-Might look into getting my CFA designation
-Will keep myself open to buying a house or condo in the New Year, but no desire to rush it
-Get back into shape - hit the gym a minimum of 3 times a week, no excuses


Hopefully tracking myself here will keep me honest. I think the most challenging will be saving 50% of after-tax pay, so here's hoping I get a raise .

Happy new year to all.