Passive Income – May 2016

Before diving into the May 2016 Income, I have some exciting news to share. As you know, I am a big fan of option writing for passive income. Via the FIRE community I got in touch with  few others that do the same. Inspirational! I am very happy to announce that every Monday of June, I will feature an interview with an option trader. Going forward, I plan to do this on the third Thursday of the month.

So, what did the passive income look like?

Dividend Income

For now, dividends are only a small portion of my passive income strategy. I have a idea in place to grow my DGI portfolio with mainly Belgian companies (Partly for tax purposes). More on that later.

This month’s income was nice: 84€
This is a nice income for doing nothing. Most of this comes from my new buy Solvay. The rest is from KMI.

Options Premium Income

May has been an interesting month for me. I have made some newbie mistakes with a covered call (selling an option when I was not willing to sell the stock) and the market went against my directional options: GDX took a dive while I was positioned for a stable or higher price. Both events limited my income. Part of the game!

income201605

This month’s income was still nice: 197,5€. Compared to my initial year goal, my income this month is still awesome. When I put things in perspective, it is regular. All depends from your point of view. Funny actually.

Going forward, I will adjust my strategy a little. This is related to the outer-space speculation tax in Belgium. Profit out of short term trading on stock (not ETFs) is taxed at 33 pct (trading costs are not taken into account). Till now, there was juridical debate on options and banks decided not to apply the tax. This might change and even be applied retro actively. This will cost me money (I will spare you the details on how option rolls are taxed, in one word: over the top!)

So, my real premium income will be ETF based. Here, I take profit early.

On individual stock, I will let options expire. For a funny funky reason, this is not considered a trading profit (are you still following?) This will happen in another account.

How was your May Income?

 

 

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26 thoughts on “Passive Income – May 2016

  1. Very nice! Do you set your dividends to auto reinvest?

    I haven’t received any dividends on my investments since March but I did get about $40 in interest income from my deposit accounts.

    Liked by 1 person

    1. Is is great. When you have a list of stock you would like to buy anyway, the options could be a solution to buy them at your price. As a plus, you get paid for waiting.
      Keep an eye n the option trader series… Some people use that technique

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  2. nice job through may! 🙂 it was a hard month for options traders like us.
    Nevertheless you pulled in more than double of your monthy premium goal, awesome job! 🙂

    keep it up over there 🙂

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  3. And AT is at it again, nice income from both sources! Well done.

    We are still awaiting the final dividend payments into the investment accounts, final score is expected next week. But should be around €350 for May.

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      1. Same here, but there is the difference in trade date and settlement date. We go by the settlement date for the transactions. But there can be up to 4 weeks difference between the trade date and the settlement date. It therefore happens that for dividends with a settlement date in May, the trade date (which is also the date that it show up in the account) is say the 10th of June. So we have to wait well into the next months to see what the final dividends are for May (they also vary each month since we use DRIP’s).

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      2. The “problem” of trade dates and settlement dates primarily happens in the Canadian accounts. It is not to be confused with the ex-dividend date though , which was in May for RDSA with payment scheduled on the 27th of June (for RDSA and UNA I believe the trade date and settlement dates are the same).

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  4. Congrats on another great month. I’m excited to see that your dividends are quickly adding up. I’m also looking forward to your upcoming options posts.

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  5. Well done! It’s dividend month for all my index funds, so I’m looking forward to increasing share count! I always find option trading discussions really interesting, though I haven’t delved into it.

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  6. Oh, you’re getting fancy with those Options. Congrats on the dividend income and I’ll check back to check out more of these Options posts.

    Rock on Amber Tree.

    Liked by 1 person

    1. Tristan, that is a very good question… I never gave it any tought. During FI, I guess I do not mind still depending on options income. It would be great to reach 500/month or so (just dreaming). Once we are in the RE part, ideally, it We can live of other passive income streams.

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  7. Thanks for sharing your passive income results.I’m excited to read about options more as I see many of our fellow bloggers collecting nice premiums to supplement their passive income streams. Keep your own dividends growing too. Can’t forget about that. Look forward to your next update.

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  8. Nice post, ATL. I’ll have to watch for your interviews with the option traders. I know so little about it. Nice work on the dividends. I love income that you don’t have to work for.

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