Option Expiration - January 2014

January expiration feels a lot like cleaning house; getting rid of the things I no longer need to create space for something new. My account appears more organised and is easier to manage with fewer open positions. This process is similar to decluttering.

My previous strategy involved selling many LEAPs (longer dated options) to lower my cost base and to buy the dips. Because I do not close my winning trades, my investment account becomes cluttered with a mess of worthless positions.

Presently, I focus on generating a steady income through dividends and option premiums. My strategy does not involve purchasing shares during a downturn to sell for a profit. I value income created through my investments over stock price appreciation. My plan is to sell short duration options and fewer LEAPs.

I sold a total of 45 positions for January: 41 expired worthless; one was assigned prior to expiration; two were rolled for a credit; and one was closed at a loss.

Listed below are my expired options for the month of January. Premiums are the amounts of money I received after commissions. My total option premiums are included in my monthly blog entries.

Expiration - January 18, 2014

Date             Position               Premiums

12/05/11      3P  BCE  $32          $436.26
05/30/11      1P  BMO  $58         $703.80
06/01/11      1P  BNS  $54           $618.80
12/23/13      5P  BNS  $64.50      $333.76 closed
05/23/12      2P  CL    $32.50      $228.75
08/04/12      1P  CNR  $66          $719.25
12/23/13      3C  CPG. $41.50      $64.26
06/20/12      3P  CVE  $28       $1,051.26
12/03/13    10P  CVE  $29          $117.51
11/26/13    10P  DIS   $60          $107.50
12/20/13     6P   EMA $30          $192.51
04/19/13     3P  ENB $36           $121.26
10/12/11     1P  GIS  $40           $618.74
11/18/13    10P GIS  $45             $97.50
01/06/14      5P  GSK $52.50     $133.75
05/31/11      2P  HSE  $26          $537.55
10/17/13      8C  JNJ  $92.50    $1,525.04 closed
06/05/12      1P  JNJ  $35              $73.75
07/29/13      8C JNJ  $95          $1,743.80 closed
11/18/13     10P JNJ  $77.50         $77.50
05/23/13      3P KEY $58            $616.26
04/24/12      6P  KO  $25            $346.25
04/19/12      3P  MCD $50          $319.25
11/15/13    10P  MCD $85          $117.50
04/17/12    10P  MFC  $8           $627.51
06/05/12      1P  PEP  $35           $68.75
02/10/12      1P  PEP  $50         $278.75
11/15/13    20P  PEP  $70         $165.00
11/15/13    20P  PG   $70          $185.00
05/31/13      4P  PPL  $30         $365.01
06/06/12      1P  RY   $52          $578.80
05/26/11      1P  RY   $56          $638.80
01/06/14      5P  RY   $70          $133.76
06/07/12      6P SBUX $25        $642.49
12/05/11      3P  SC   $34         $661.26
09/20/11      5P  SU   $30      $3,233.76
06/13/12      1P  T     $23           $89.75
12/06/12      1P  TD  $70          $258.76
11/19/13      3P  TD  $92          $136.26
08/30/13      5C TD  $92          $988.76 assigned
09/09/11      5P  TRP $34     $1,208.76
04/26/12      1P  XOM $60      $303.75
11/15/13    20P  XOM $77.50  $165.00
02/04/13     1P  YUM   $50       $168.75
12/23/13   10P   YUM  $60         $97.50


Ticker Symbols

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

BMO - Bank of Montreal (TSX)
BNS - Bank of Nova Scotia (TSX)
CL - Colgate-Palmolive
CNR - Canadian National Railway (TSX)
CPG - Crescent Point Energy (TSX)
CVE - Cenovus Energy (TSX)
DIS - Walt Disney Corp
EMA - Emera Inc (TSX)
ENB - Enbridge Inc (TSX)
GIS - General Mills
GSK - GlaxoSmithKline
HSE - Husky Energy Inc (TSX)
JNJ - Johnson & Johnson
KEY - Keyera Corp (TSX)
KO - Coco-Cola
MCD - McDonalds Corp
MFC - Manulife Financial (TSX)
PEP - Pepsico
PG -Proctor & Gamble
PPL - Pembina Pipelines (TSX)
RY - Royal Bank (TSX)
SBUX - Starbucks
SC - Shoppers Drug Mart (TSX)
SU - Suncor Energy (TSX)
T - AT&T
TD - Toronto Dominion Bank (TSX)
TRP - TransCanada Corp (TSX)
XOM -Exxon Mobil Corp
YUM - Yum Brands