The drastic decline of oil prices impacted the overall value of my account. My energy and energy related stocks were hit hard. It was rather unsettling to observe my 1,200 shares of Baytex Energy (which was once my largest holding) decline 13.95% in a day. My shares of Surge Energy, purchased last October through my $8 put assignment, fall as low as $4.90. As a long-term, income focused investor, I am not easily stressed over falling stock prices. My main concerns are dividend cuts and margin calls.
On Friday November 28, I woke up with $115K available margin. At market close, my available margin fell to $71,713.63. I was surprised to experience a drop of $44K in one day. If this market action continues, I will be required to close short put positions to maintain a positive margin.
In my retirement account, I bought 200 shares of AltaGas Ltd. (ALA.TO) at $44.51 per share. In addition to receiving $29.50 monthly dividends, I sold January $46 calls for .80. I currently hold 10 ALA $48 short puts. I will continue to roll them to a future expiration for a credit to avoid assignment.
Listed below is my account activity for the month of November.
DIVIDEND INCOME
Company Name Amount of Dividend
Agellan Commercial REIT $243.08
Bank of Montreal $214.50
Baytex Energy $288.00
Bonterra Energy Corp $150.00
Colgate-Palmolive $288.00
Emera Inc $437.88
General Mills $328.00
Inter Pipeline LTD $126.31
Keyera Corp $150.50
Leisureworld Senior Care $225.00
Pembina Pipelines $162.69
Surge Energy $150.00
Total Dividends $2,763.96
OPTION PREMIUMS
The following is a list of my November option trades. The premiums listed are the amounts of cash I received after commissions.
Date Position Premiums
11/03 15P TD Dec $50 $226.26
11/05 -10P CVE Nov $29 -$2,022.49
11/05 -10P CVE Nov $30 -$3,072.49
11/05 15P CVE Jan/16 $28 $5,371.26
11/06 25P PG Jan. $75 $333.75
11/07 10C CPG Apr $42 $527.51
11/10 10P GIS Dec $47.50 $177.50
11/07 10C FTS Apr $40 $427.51
11/18 -10P ALA Nov $48 -$3,122.49
11/18 10P ALA Dec $48 $3,277.51
11/21. -2C BMO Nov $82.50 -$148.49
11/21 2C BMO Dec $82.50 $313.51
11/21 1C TD Dec $56 $146.76
11/21 10P XOP Dec $50 $207.50
11/21 15P PEP Jan $85 $226.25
11/24 2C ALA Jan $46 $147.51
11/24 15P BNS Dec $66 $151.26
11/24 25P XOM Dec $87.50 $283.75
11/24 25P XOM Jan $82.50 $384.75
Total Option Premiums $3,836.83
Interest Charges
Margin Interest $39.75
Line of Credit $46.45
Total Interest Charges -$86.20
Total November Income $6,514.59
Ticker Symbols
* TSX listed stocks and options are listed in Canadian currency and the remainder are listed in US currency (exchange rates may vary).
ALA - AltaGas Ltd (TSX)BMO - Bank of Montreal (TSX)
CPG - Crescent Point Energy (TSX)
CVE - Cenovus Energy (TSX)
FTS - Fortis Inc (TSX)
GIS - General Mills
PEP - Pepsico
PG - Proctor & Gamble
SBUX - Starbucks
TD - Toronto Dominion Bank (TSX)
XOM - Exxon-Mobil Corp
XOP - Oil & Gas Exploration ETF
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