Saturday, 2 November 2013

October Account Activity

October was an active month for my investment accounts. I closed several option positions to cover a negative margin; rolled several options for a credit; and made changes to stocks held in three of my accounts. Two of my unmitigated losses include: 1) closing my JNJ (Johnson & Johnson) call options and 2) closing my EMA (Emera Inc) put options.

1) JNJ - I sold the only holding in my retirement account, 905 shares of JNJ, to purchase shares of three companies (Emara, Bank of Nova Scotia, and Crescent Point Energy). I purchased 400 shares of JNJ in my margin account. I will continually sell JNJ put options to gain additional shares. These costly actions result in a trimming of my largest position and avoiding future currency conversion costs by placing JNJ in a US dollar account. Prior to selling my shares, I closed my covered calls for a cost of $1,860.00.

2) EMA - I bought 1,000 shares of EMA in my retirement account. I will enrol in the DRIP (dividend reinvestment Plan) and receive a 5% discount from the purchase of additional shares. While holding EMA in a retirement account, I am not required to calculate my adjusted cost base each time I receive shares through the DRIP. Prior to purchasing my shares, I closed my November $32 puts to avoid assignment of EMA in my margin account for a cost of $1,139.99.

As a result of the two costly trades, October as my least profitable month of 2013.

Listed below is my account activity for the month of October:

DIVIDEND INCOME

  Company Name         Amount of Dividend


Batex Energy                          $264.00
Crescent Point Energy            $117.30
Gibson Energy                        $412.50
Keyera Corp                           $121.20
Pembina Pipelines                  $157.08
RioCan REIT                          $170.73
TD Bank                                 $425.00
  

    Total Dividends            $1,667.81



OPTION PREMIUMS


The following is a list of my October option trades.
The premiums listed are the amounts of cash I received after commissions.

  Date        Position                 Premiums

10/03    -2P  MCD  Oct 4  $97    -$472.49
10/03     2P  MCD  Oct 25 $97     $547.50
10/04  -20P   GIS   Oct      $41      -$94.99
10/04     2P  CNR  Dec   $100      $217.51
10/07     4P  PPL   Apr     $29       $185.01
10/09  -20P   CL    Oct    $50        -$75.00
10/09   10P  CVE  Nov    $28       $237.51
10/11   -3P  XOM  Oct    $90    -$1,093.74
10/11    3P  XOM Nov1  $90      $1,096.24
10/14    1P   CL Jan/16 $57.50      $583.74
10/16    4C  BTE  Apr  $48             $145.01
10/17   -8C  JNJ   Oct  $90         -$1,246.41
10/17    8C  JNJ Jan/14 $92.50   $1,425.04
10/18    2P   KEY  Dec  $54           $127.51
10/18    2P    TD    Dec  $88             $87.51
10/18   25P    PG.  Dec   $65          $258.75
10/18.  20P   JNJ   Dec   $75          $205.00
10/18   25P  XOM  Dec  $70           $258.75
10/21   20P  PEP    Dec  $70          $218.00
10/21.  25P    CL    Dec  $50          $208.75
10/21   3C  XOM   Dec  $90           $191.25
10/22  10P  GIS     Dec  $44          $107.50
10/23   3P   CVE   Apr  $27           $151.26
10/23   3P   ENB   Apr  $40           $175.26
10/24  -2P  MCD  Oct 25 $97       -$472.49
10/24   2P  MCD. Nov 23 $97       $519.50
10/28   5P   RY     Dec   $68         $273.76
10/29/ 10P  SBUX  Dec  $65        $127.50
10/29  10P   YUM  Dec  $55           $77.50
10/30.  5P    BNS   Nov  $63         $158.76
10/30  -8P  JNJ Jan/14  $92.50  -$1,860.00
10/31  -8P  EMA  Nov  $32        -$1,139.99
10/31   1P  JNJ   Dec    $90              $89.75

     Total Option Premiums   $1,218.26


Total October Income:    $2,886.07



Ticker Symbols


* TSX listed stocks and options are listed in Canadian currency and the remainder are listed in US currency (exchange rates may vary)

BNS - Bank of Nova Scotia (TSX)
BTE - Baytex Energy (TSX)
CL - Colgate-Palmolive
CNR - CN Rail (TSX)
CVE - Cenovus Energy (TSX)
EMA - Emara Inc (TSX)
GIS - General Mills
JNJ - Johnson & Johnson
KEY - Keyera Corp (TSX)
MCD - McDonald's Corp
PEP - Pepsico
PG - Proctor & Gamble
PPL - Pembina Pipelines (TSX)
RY - Royal Bank (TSX)
TD - TD Bank (TSX)
XOM - Exxon Mobil Corp

2 comments:

  1. Hi,

    Thanks for sharing your activity. It's really inspirational. I have a question. How does one obtain that 5% discount on EMA shares through DRIP? Does is happen automatically just because it is something that company offers? Is it something offered by your broker instead?
    Thanks!
    LT

    ReplyDelete
    Replies
    1. Hi LT,

      By enrolling in the DRIP, I automatically receive discounts when offered by corporations, such as Emera. However, when I did a comparison of rates, I discovered these discounts are not provided through every broker. Hopefully yours offers it.

      Thanks for your comments.

      Delete

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