In October, I actively pursued income from covered calls and cash-secured puts on AT&T, Verizon, and Super Micro Computer (SMCI). Here’s a breakdown of each trade and the income strategy behind them.
AT&T (T) $23 Call – Expired Worthless
- Trade Date: 10/16/2024
- Premium Collected: $9
- Outcome: Expired worthless on 10/25/2024
With AT&T, I collected a small premium at a strike price above the stock’s near-term range. This call expired worthless, allowing me to capture the full premium. Selling calls on stable stocks like AT&T provides reliable income with manageable risk.
Verizon (VZ) $42.50 Call – Expiring 11/08/2024
- Trade Date: 10/28/2024
- Premium Collected: $24
This call is still open and offers additional premium income if Verizon remains below the strike price. I’ll be monitoring it closely as expiration nears.
Verizon (VZ) $46.00 Call – Expired Worthless
- Trade Date: 10/18/2024
- Premium Collected: $14
- Outcome: Expired worthless on 10/25/2024
The $46.00 Call expired worthless, enabling me to keep the full premium. Like AT&T, this added premium without the need to sell the underlying shares, keeping my cash flow steady.
Super Micro Computer (SMCI) $46.00 PUT – Rolled from $45 PUT
- Trade Date: 10/24/2024
- Premium Collected: $80
- Notes: Rolled from an initial $45 PUT expiring 11/22/2024
I rolled this SMCI PUT to a higher strike, gaining more premium and pushing out expiration. This helps manage risk and lets me potentially buy shares at a discount, should SMCI’s price fall.
October OPTIONS
| Date | Call | Option Premium | Notes |
| 10/10/2024 | Sell SMCI $40 PUT 10/25 | 81 | |
| 10/11/2024 | Sell SMCI $40.5 PUT 11/1 | 55 | rolled Sell SMCI $40.5 PUT 11/1 |
| 10/14/2024 | Sell SMCI $44 PUT 11/8 | 188 | rolled Sell SMCI $40.5 PUT 11/1 |
| 10/15/2024 | Sell SMCI $44 PUT 11/15 | 35 | rolled Sell SMCI $44 PUT 11/8 |
| 10/16/2024 | Sell SMCI $45 PUT 11/22 | 76 | rolled Sell SMCI $44 PUT 11/15 |
| 10/16/2024 | Sell T $23 Call 10/25 | 9 | Expired Worthless and captured Premium |
| 10/28/2024 | Sell VZ $42.50 Call 11/08 | 24 | |
| 10/18/2024 | Sell VX $46.00 Call 10/25 | 14 | Expired Worthless and captured Premium |
| 10/24/2024 | Sell SMCI $46.00 put 11/29 | 80 | Rolled Sell SMCI $45 PUT 11/22 |
Takeaway: Consistent Income Through Options
In total, these trades brought in $127 in premiums, supporting my income-focused strategy. With careful management, including rolling the SMCI PUT, I’ve been able to balance risk with regular cash flow.
This steady income strategy complements my broader portfolio by adding premium income alongside dividend growth. Looking forward, I’ll continue evaluating these positions and reinvesting where I see potential.
