March was a very active month for my account, mainly due to my quartly dividend paying stocks. By March 22, I had used up my available margin selling put options, resulting in a general sense of boredom I often experience when I am not trading.
I could have resolved this issue in one of two ways:
1) Close some of my current possitions and write new ones
2) Transfer additional cash from my savings account into my investment account
Rather than paying higher commissions and assuming additional risk, I decided to devote my time to conducting research, watching option trading utube videos, and reading blogs from other investors/traders.
Listed below is my account activity for the month of March:
DIVIDEND INCOME
Company Name Amount of Dividend
Baytex Energy $242
Cenovus Energy $193.60
CN Rail $129
Crescent Point Energy $46.92
Enbridge Inc $126
Exxon Mobil $171
Johnson & Johnson $524.82
Keyera Corp $108
McDonald's Corp $308
Pembina Pipelines $206.55
PepsiCo $215
RioCan REIT $165.67
Total Dividends: $2,436.56
OPTION PREMIUMS
The following is a list of the options I sold in March.
The premiums are the amount of cash I received after commissions..
Date Position Premiums
03/01 20p PG March $67.50 $165
03/04 25P CVE April $28 $208.76
03/06 20p XOP April $49 $265
03/07 2C CPG March $38.50 -$122.49 (buy to close)
03/11 25P XOM May $75 $408.74
03/15 30P CL April $90 $287.50
03/18 30P PEP May $67.50 $282.50
03/19 30P CVE May $28 $252.51
03/22 20P PG April $67.50 $165
Total Option Premiums: $1,912.52
March Investment Income Total: $4,349.08
Hello,
ReplyDeleteI recently came across your blog and I really like your strategy.
I was wondering how far OTM do you like to go? How often do you get assigned?
Hello, Thank you for your comments. I prefer to go as OTM as possible. I do not have a specific percentage, it really depends on the stock. I try to take little risk with my options.
ReplyDeleteMy puts are rarely assigned; my most recent was Baytex Energy in July/12.
Calls on Pembina Pipelines and CN Rail have been assigned recently. I sell calls when I own too many shares of a particular company that I believe it is fully valued or trading sideways. Although I am happy to take profits on a stock, I dislike losing to the upside and lowering my dividend income.
In the future, I plan to sell fewer calls.
I hope you find this information helpful.