I have made a few changes to the FFJ Portfolio in the first half of September. Rather than wait until month end, I provide this interim report for the sake of full disclosure.
I acquired an additional 300 Chevron (CVX) shares as per this article for one of the 'Side Accounts' at an average cost of $115.38.
Further to my recent Fortive (FTV) article I have acquired 300 shares at an average cost of $66.57666 for one of the 'Side Accounts'.
In my recent HEICO (HEI) article I indicated that I would be initiating a position. On September 16, I acquired 300 shares at an average cost of $99.006 for one of the 'Side Accounts'.
A few call options are set to expire September 20, 2019 but since I am scheduled to be out of town on this date I decided to close some positions on September 16.
My MSCI Bear Call Spread option transaction didn't work out too well. After closing this position my net loss after commission amounted to ~$615.
In my April 28 article I disclosed that I would be initiating an option trade on Microsoft (MSFT). On April 30 I wrote 1 covered call on a portion of my Microsoft (MSFT) holdings in one of the 'Core Accounts'. After closing this position my net profit after commission amounted to ~$140.
In another 'Core Account' I wrote 1 Bull Put Spread on Microsoft (MSFT). After closing this position my net profit after commission amounted to ~$205.
In my April 8 Chevron (CVX) article I disclosed that I had just written a dozen Covered Call option contracts expiring September 20 with $130 and $135 strike prices. I have not closed out these positions as I am of the opinion that CVX's current ~$124 share price will not rise to the strike prices of the option contracts between now and September 20. If CVX's share price remains below $130 come expiry, all contracts will expire worthless meaning I retain 100% of the ~$3,159 (after commission) I collected when I wrote the contracts.
In my April 16 NIKE (NKE) article, I disclosed that I had written 5 Covered Call option contracts expiring September 20 with a $92.50 strike price. NKE is currently trading at ~$87.30 and I am cautiously optimistic NKE's share price will remain below the strike price between now and expiry. In exchange for writing these contracts I collected ~$1554 (after commission) which will be my profit if the option contracts expire worthless.
On April 30 I wrote the following Canadian National Railway article. I wrote 3 Covered call contracts with a $125 strike price which expire September 20. CNR is currently trading at ~$121.50. If the share price remains below $125 come expiry I will retain the shares and the ~$1,276 premium I collected.
Should the CVX, NKE, and CNR option contracts expire worthless, my total net profit after commission for the contracts reflected above will amount to $5,719. I know this is not much but considering I still own the underlying shares, I view this option income as 'pennies from heaven'.
Final Thoughts
I fully confess that I am frustrated we have not yet witnessed a significant market correction (35%+ would be nice). When I feel this way, I re-read the following wise words of Mohnish Pabrai, a highly successful Indian-American businessman, investor, and philanthropist.
‘You make money by waiting.’
My FFJ Portfolio September month end update should be uploaded October 1.
I wish you much success on your journey to financial freedom!
March for the Fallen
I am scheduled to once again participate in the March for the Fallen to be held September 28 at Fort Indiantown Gap, Pennsylvania. I provide this link so you can learn more to help you decide if this is an event in which you would like to participate in 2020.
FYI - Fort Indiantown Gap is a stone's thrown from Hershey where you can check out The Hershey Story Museum.
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