Sunday 21 September 2014

Option Expiration - September 2014

I held ten options positions with September expiration; eight expired worthless; and I rolled two to October for a credit (Yum Brands YUM and Crescent Point Energy CPG).

Several days prior to expiration, I bought to close my 15 YUM $72.50 puts for $1,468.74 and sold 15 October $72.50 puts for $3,586.18 (receiving a credit of $2,117.44). On the date of expiration, YUM closed above $72.50. This is the second month I had rolled my 15 YUM short puts.

Shortly after the market opened, on expiration day, I bought to close my five CPG $42 puts for $316.24 and sold five CPG Oct $42 for $533.76 (receiving a credit of $217.52). Near the end of the day the market went higher and CPG closed above $42.


Both of my positions would have expired worthless. However, I do not regret closing them as it's best to remain cautious when trading. If the puts would have been assigned, I would not have had sufficient cash to cover them.

The following is a list of my expired option positions. Premiums are the amounts of cash I received after commissions. My option premiums are included as income in my monthly blog posts at the date the income is received.

Date              Position           Premiums


07/21/14   5P    CPG    $42      $268.76 closed
07/21/14   10P  CVE    $30      $167.71
07/21/14   10P  DIS     $75       $227.50
08/01/14   10P  ENB   $50        $147.51
07/17/14   25P  JNJ    $90         $408.75
07/21/14   25P   PG    $72.50    $283.75
07/21/14    5P  TGT    $55         $208.75
07/17/14  25P  XOM   $90         $508.74
08/15/14  20P  XOP    $65.        $325.00
08/14/14  15P  YUM  $72.50  $3,886.17 closed


Ticker Symbols

CPG - Crescent Point Energy
CVE - Cenovus Energy (TSX)
DIS - Walt Disney Co.
EMA - Emera Inc (TSX)
ENB - Enbridge Inc (TSX)
FTS - Fortis Inc (TSX)
GIS - General Mills
HSE - Husky Energy Inc (TSX)
JNJ - Johnson & Johnson
KEY - Keyera Corp (TSX)
MCD - McDonald's Corp.
PEP - Pepsico
PPL - Pembina Pipelines (TSX)
RY - Royal Bank (TSX)
SBUX - Starbucks
TD - Toronto Dominion Bank (TSX)
TRP - TransCanada Corp (TSX)
XOM - Exxon Mobil Corp
YUM - Yum Brands

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