Winter is coming… Ski holiday is only 3 weeks away… That is a nice outlook. With November behind us, it is time to look at my
passive non-working income.
I have 3 sources of non-working income in my portfolio: dividends, capital gains from trading and option premium income.
November has only income in option premium and some small dividend income.
There was 341€ of option income last month. Not a bad month for me. With almost one year of active option trading, this is slightly above my YTD average. I should buy my wife and me a nice glüwhein on the ski slopes. What do you think?
Numbers do not tell the full story. I try to be as transparent as possible in my option story, showing you the good news and the bad news.
This month, I got actually assigned for the first time stock. This means I sold a put and someone decided to use his right to sell the stock at the strike price. I had the obligation to buy the stock. I was scared for about 5 seconds, then the rationale kicked in. Remember, I write puts on stock I would not mind owning.
The option had a strike a of 28USD and now the stock trades around 21USD. That is a loss of 7USD per stock, so, that makes 700USD. So, where is that loss? For now: nowhere! Why? It is a paper loss. As long as I do not sell, it is not a real loss. I apply the same rule on gains. I have stock I bought at 16, that now trades 22. That paper gain is also nowhere. My trading reporting deals only with realised losses and gains.
November was rather skinny: 7,59 EUR of dividend income.
December looks better, with the dividends from RDSA, SOLV and BPOST coming in. That should be my best month of the year. Although I do not consider dividends as part of my core strategy, I do like the dividend return that beats the interest on a savings account. When I manage to build up a Belgian based dividend portfolio, I could start to see this as an alternative for my savings account. The home bias is a non issue due to my investments in trackers that cover the whole world. Let me sleep on it.
How was your November month?