My Trading Account Status 8/2/2014

My holdings took a hard hit this past week. Here they are as of August 2nd, 2014:

DescriptionSymbolQuantityDate AcquiredCost BasisMarket Value
AFLAC INCAFL10001/31/14$6,278.95$5,912.00
AFLAC INCAFL8903/27/14$5,540.75$5,261.68
NELNET INC CL ANNI12112/11/13$4,970.79$5,016.66
AFL Aug 16 2014 65.00 CallAFL Call-107/18/14-32.34-3.00

If you haven’t heard already, the DJIA fell 317 points on Thursday, July 31st, 2014, and another 69 points on Friday, August 1st, 2014.

AFL closed out for the week at $59.12. Ouch! On my last week’s post I speculated that AFL might hit $64 soon. I was dead wrong! I was right that there would be a big swing in price, but it was a big downward swing.

I do think that AFL will recover somewhat in the next 2 weeks. It will not recover enough to justify a sell. They did announce a quarterly dividend of $0.37 per share payable on 9/21/2014, with an ex-dividend date of 8/18. My plan now is to keep my shares until at least 8/18 to collect the dividend.

On the bright side, I can be sure that the $65.00 Aug 16 call will expire with me pocketing the premium without selling my stocks. It’s still possible that AFL will get back up to $65 in 2 weeks time, but highly improbable.

After the Aug 16 call expires, it will be harder to to sell another $65 call on my 100 shares for a good premium. I will need to keep a close tab on the option chain.

There was no significant change in price for NNI. We will have to see what happens when earnings are announced next week.

My real bottom line on 8/2/2014: $16,311.40

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