Option trade diary #5 – Advanced metallurgical group

This one is not for the faint of harted , today in my option diary series , Advanced metallurgical group. Which in a very short description makes difficult products out of precious metals. With emphasis on difficult, and precious.

It’s a very hard and volatile market on any given day, it’s a highly cyclical business and it’s always at the forefront of any wrinkle in the market. But it’s a nice stock to own just because the stuff it produces is only getting harder to come by and it’s something which will be more expensive in the future , and since were here for the long run , this is worth a bit of a gamble. So I sold two put options.

These are the options I sold :

AMG Put 14.00 20 December 2019, for 50 Euro’s
AMG Put 18.00 20 March 2020 , for 175 Euro’s

As you can see, these were sold right before a dip in the market due to tweeting presidents and the like. So my timing was a bit off. So this case shows this stock can fluctuate a bit , I told you so. Target is 50% or less before I buy them back. See you next time !

July 2019 Dividend

A new month, a new dividend round. And another nice monthly revenue, which in most part because of the ever growing portfolio , not so much extreme dividend increases. Around 167% more. Seems steep but mostly because of the growing number of shares and ETF’s which pay out. Compounding interest at it’s finest. The 8th world wonder some say. Exactly as it was intended. A nice bit of passive income.

We live in strange times, as always maybe. But it’s rather strange indeed, geopolitics, environment and economical. The switch towards a more sustainable way of living which is upon us. Which has not yet been seen in any of the current driving numbers. It’s time we look at things in a different perspective. Calculate our production and profits not just in money and growth. Take into account things like health, impact on the environment and our surroundings, happiness and more of these kind of parameters. These should all be taken into account when calculation the gross national production of countries or the results of any company.

Unfortunately we are not there yet, until we are it’s all about the benjamins. Speaking of which , here are the July dividend numbers :

DateStockCurrencyAmount
25-07-2019Walt Disney CompanyEUR0,68
24-07-2019Cisco SystemsEUR8,83
16-07-2019W.P. Carey IncEUR9,32
11-07-2019Vanguard FTSE all world UCITS ETFEUR114,27
05-07-2019Unibail - WFDEUR16,41
02-07-2019Porsche automobil holdingEUR22,10
02-07-2019Nike IncEUR1,98
01-07-2019Coca ColaEUR5,41



TotalEUR173,59

Option trade diary #4 – Heineken

Another new position, this time Heineken. Also a bit different this time it’s a written call option instead of a put option. Which means I am bound too deliver the shares at the strike price up until the expiration date. There are two ways to go about this. Covered and uncovered , when you write a covered option this can be done when you have the shares in your possession. You expect the shareprice to stay more or less the same or go down and the option premium is a bit of an extra result on your stock position. You are covered by the fact you own the right amount of the stock. This can also work against you, when the share rises above the strike price effectively limiting your profits, which will be strike price plus option premium.

This is the easy way of covering, there are other ways , but those are for another post and another time.
Leaves us with the second variation, writing uncovered calls. Which means you don’t own the right amount of stock and you gamble om a downturn in the share price. Your potential loss is infinite as the share price can rise well above your strike price and when called upon too deliver , you will have too buy at market price.
You do have the option to buy the option back at any given time. So before you do anything be well aware of the risk and your risk appetite.

That’s the theory behind it in a nutshell, back to the position itself. Heineken’s share price rose above 100 Euro’s last week, at that time it got me thinking the valuation seems a bit high at the moment. The last jump up was also quite significant. Nonetheless Heineken remains a very solid company with great dividend history, worth having in any portfolio.

So I took a bit of a gamble and sold a Call option, strike price 100 euro, expiration date 15 December 2023. At 12,50. And I have set a goal buying the option back at 9,25. Let’s see how this works out.

June 2019 Dividend

Dividend update June 2019, the eight miracle of the world, compounding is taking a hold on my dividends. Another significant increase in dividend payouts for my retirement. Whenever that will be. Anyway, most comes from the usual suspects. Some from newer positions but mostly existing ones. Comparing with last year it’s another nice increase of about 36%. Which is very nice indeed.

It only becomes real when you start accumulating real assets. In theory it’s all very clear. But you have to have a bit of faith in the long term plan. Which can be pshycologically challenging , and at times it is. But when you look at the growth and the numbers , it all makes sense. So just start and keep at it, remember showing up consistently is all it takes when talking about achieving your goals. In this case showing simply means keep investing.

So without further delay the overview :

DateStockCurrencyAmount
21-06-2019

AegonEUR15,00
20-06-2019Icahn EnterprisesEUR1,77
20-06-2019Vanguard dividend appreciationEUR1,26
18-06-2019HAL Trust EUR53,14
14-06-2018DOW incEUR1,86
13-06-2019Deutsche PfandbriefbankEUR100,00
13-06-2019MicrosoftEUR8,14
05-06-2019UnileverEUR8,21
TotalEUR136,24

Personal finance, it’s very personal.

I read a lot on personal finance, just too learn from people and their approach. It’s not just the financial independence part I’m interested in. Mostly I am more interested in how people go about the decision making process. A always pick something useful out of that. One thing I have learned it’s an incredible personal journey. The math is different for everybody, as well as time span, risk adversity and all other factors one might take in consideration.

There are some basics , most people start off by paying off consumer debt, student loans and mortgages. The variation starts from that point on, one might want to pursue a world trip , others want a better retirement or really early. All of these goals have different metrics. So there is not one right way , generally speaking the basic and key metric is spent less than you make.

One thing I have learned along the way is , make sure you know what your end goal is. And make sure this is really what you want. This is generally the hardest part to figure out. It’s has partly to do with the amount of time it takes achieving these life changing goals.

Also goals can change over time. And that’s ok, nothing wrong with that. Just don’t change them every month week or year. The journey in itself is rewarding as well, focussing and maintaining an outlook with a better and more secure future will pay off sooner than you think.

As it being personal one key thing will change for most. Your stress levels will decrease once your debt decreases and your net worth increases. Your mindset will change for the better. More mind space is available for things other than worrying. In my experience things will get better fast, more relaxed and your mind sharper. The main thing is getting better not just financially but also mentally and physically.

As with all long term goals you will get lost on the way, it helps defining and keeping an eye on the main prize at the end of it , but setting intermediate smaller goals in sync with the end goal keeps you enthused on the journey. Find those small goals and make a list. Once you get one , mark it as done. Celebrate it ! Share it with people that are important to you. Once the list is done, make a new one and save the old one. It’s a nice reminder of where you came from. It has worked for me in every part of life, not just finance. With my recovery as well. It keeps you grounded and thankful for progress made. It’s not an easy task getting in (financial) shape, but the ups and down will make you stronger !

While goals and time lines may vary wildly , the benefits and rewards that come with more financial stability are around the corner. The beginning might seen hard but your persistence will pay off. Find your first goal and stick to it.

May 2019 Dividend

May has passed , summer ahead and so it’s time for another dividend report. As usual May is a busy month for dividend. This year there has been an increase in dividend yet again, due mainly to new or additions too existing positions and some increases. As well as Munich Re , a large part of the total dividend any month they pay out. This month it was in May, but last month it was in April. A one on one comparison is a bit tricky so therefore I am not doing that. But it’s sufficient too say it’s up. When we look at the year as a whole we already have two thirds of the total dividends of last year in the pocket. And were not even half way yet. Al is going very well indeed.

The rundown :

DateStockCurrencyAmount
02-05-2019INGEUR44,00
02-05-2019Bayer AGEUR14,00
06-05-2019Munich ReEUR212,75
07-05-2019JungheinrichEUR5,00
08-05-2019ASMLEUR21,00
09-05-2019Amsterdam CommoditiesEUR36,00
15-05-2019NSIEUR13,44
16-05-2019AppleEUR10,41
20-05-2019K+S AGEUR10,00
21-05-2019BMWEUR35,00
28-05-2019ASM InternationalEUR30,00
28-05-2019DowDuPontEUR1,26
EUR432,86

Option trade diary #1 – ASML position 1

New series, as I stated in my option article newsflash post. I am going to mix it up. Talking about positions I take and why I take them. These posts are by no means advice , and should not be taken as such. It’s merely me taking you through my thought proces. Do your own homework and risk assessment at all times before doing anything !

ASML is a leading company in chip machines. Which is a highly cyclical business. It’s also one that is highly complicated and very expensive too enter. Hence when your at the top changes are you will be there for a while.

ASML has been one of my favorites for a lot of years now. I have bought the stock at first and as volatility is common I started writing put options. This time things are no different. Given the global trade war and attack on Chinese technology by the American president these are trying times. But in the long run this is only a minor hick up. As everything nowadays is technology driven it’s only a matter of time before things get back too business as usual. With these sort of ‘cyclical’ stocks the price fluctuations are always a bit over the top. Which has it’s direct influence on the option prices.

As I am long in any stock I own, I have written (sold) a put option for december 2022 with a strike price of 140 euro’s per share at a price of 19,05. Which means I received 1905 euro’s for taking te risk of having too buy 100 shares at 140 euro each. Why 1905 when the price states 19,05 ? Well 1 option contact always has the underlying number of 100 shares. So option prices should always be multiplied by 100.

I will sell this when it hits 25% profit, which means buying the option when the option price hits 14,27 (Rounded and including all transaction costs).

Why 25% ? , well what I have done is checking my historic options trading profit percentages and they on average run around the 25% mark. Which means that is psychological my comfort zone. I am not really good at letting my profits run, also these profits tend too be made in shorter time periods than my larger profits. Mostly in a matter of days instead of months. So my conclusion is I am a bit impatient and therefore this is my threshold for now.

Not very scientific maybe, bit then again it’s what I tend to do. So in order not too make things overly complicated I simply put the order in and don’t check it anymore.

First post on options and trading options new style. Will be interested too hear your thoughts and comments.
I will be making more of these as I am opening and closing positions, hopefully you will find my thought process interesting !

Option articles newsflash

Well I have been thinking a lot about my option article series, one representing the actual positions and another one explaining my option strategy and learning curve. I have decided on stopping with the overview. It’s not really teaching anything and I was struggling on getting all the information in a readable format. As such it was just a spreadsheet with some of my gains and losses. While these can be interesting , my current way of thinking is I will post a blog as soon as I enter a position with and explaining why I think it’s a good idea.

Not as an advice that anyone should follow, just showing my thought process presented by a real life example. This combines the two article series in a more learning focused way. And it will save me a lot of hassle presenting large spreadsheets in a meaningful way.

Hopefully these adjustments will help the articles along.

April 2019 – Dividend

Another month passed by quickly. And so it’s time for another dividend update. This month and the next are always big on dividend coming in. This year is no different. It’s also got a few decent increases within the payments which is a nice bonus. Although this is exactly what is supposed too happen, it still feels as a bonus.

Mind you it can also go the other way round. Dividend payments can stop just like that and stock prices can implode as well. The last decade has been amazingly good. So for all of you who are just starting out. Have a long focus and don’t be deterred when things go sideways. Because they will at some point in time.

For now we are enjoying a nice ride, so here are the results for April :

DateStockCurrencyAmount
25-04-2019Ahold DelhaizeEUR70,00
24-04-2019Cisco systemsEUR8,75
16-04-2019WP Carey Inc. REITEUR9,21
15-04-2019NedapEUR50,00
10-04-2019Vanguard FTSE All-WorldEUR57,71
02-04-2019Vanguard Dividend AppreciationEUR1,36
02-04-2019NikeEUR1,96
01-04-2019Coca Cola CompanyEUR8,03
TotalEUR207,02

Dusseldorf marathon 2019

After a week of absolute rest, or to be more precise physical rest , the nerves were breaking havoc, it’s finally time to travel. Dusseldorf marathon here we come. Not running for a week is always strange and feels uncomfortable. If I am not running processing day to day events and input becomes a lot harder. I function quite a bit less than when I am running. So I have to adjust everything. Do less. That’s always a bit of an adjustment.

De trip was excellent, The ICE takes you too Dusseldorf in no time, an easy relaxed and comfortabel way of traveling I can highly recommend.

Weather forecast was promising during the week ahead and kept on getting beter. On the day itself it was dry and chilly at the start. Because the new half marathon start got delayed so dit the main event , the marathon. So another 15 more minutes keeping yourself warm. I felt a bit stiff while waiting but that was just nerves I guess.

The waiting went pretty fast and it was time for the start. During training it was pretty clear my sub 3 hour marathon was a bit of a stretch for now, but the pacers for sub 3 hours had a slow start and I felt pretty comfortable in this group.

The first kilometer was done in 4:30 so that was fine, I just stuck with this bunch and that went well. It was pretty cold during the first 7 kilometer en sometimes I felt pretty cold myself. The pace went up slowly and probably too fast for me between 10 and 15. But it felt very good and I decide not too slow down and decent towards the 3:15 pacers. Sub 3:15 was a time I could aim for based on training results and general fitness level. Which would mean a small improvement of my personal best.

But I ran very easy and it was time for a bit of a gamble. Let’s see how far I can take this and stay with this sub 3 hour group. The half marathon mark was passed in 1:28 so perfectly on target for just under 3 hours. But as everyone knows. A marathon starts at the 30 kilometer mark. And so it went, after 30 the pace started taking it’s toll. Also the gels didn’t go in very well. Normally it doesn’t matter which brand , flavor or whatever I take it’s never a problem. That’s why I never take my own. All the solutions for taking them along just irritate me. And the gels which the organizations give out normally work fine.

Not this time, they made me a bit sick. So now I had too rely on Iso drinks, water and bananas. Works as well just not as fast. At the 35 mark I was well and truly drained. No more energy and I had too walk at one refreshment post and make sure I took my Iso drink the right way. My lap times between 35 and 40 deteriorated a bit and weren’t as fast anymore.

It takes a lot of effort just getting too move forward, or so it feels, maybe it looks that way too. It’s at that point in the marathon I simply stop watching the lap times and pace on my watch and focus strictly on the running part , just keep running. The kilometeres go by and the signs on the road counting down, 5, 4 , 3 ,2 ,1 kilometer too go are unmissable here in Dusseldorf so hat helps a lot. It gets you thinking in kilometers instead of the bigger numbers.

At the 40 mark I felt better and the finish line started pulling. The final stretch on the Koningsallee and then on to the waterfront. At one point you make a slight turn and then run down towards the bank of the river with a nice view on the finish clock. At that moment it said 3:08 and change. At that moment I wanted too cross the finish line under 3:10, and I was going for a final sprint. Which didn’t feel like sprinting at all. 3:09:25 it was. I should have crossed the line cheering and jubilant , but I was simply happy just crossing. The final kilometers were very hard, and maybe because of my fast pace in the beginning. Then again if I had started out slower and try keeping it flat during the race and the energydip had come along I never would have crossed the finish under 3:10.

It has taken me a few days in realizing this new personal best and all the race day impressions. But I am stoked with the result. I’m very happy indeed.