The markets have lost some momentum as the issue with Greece is upon us. We saw a decline in the WTI oil prices over the past while by around $8.00 a barrel. There is mention of areas of Canada to be in a recession or close to being in a recession. The prices of stocks have fallen over the last month.
In my two brokerage accounts, I didn't have enough money to warrant buying a long term position. Once money is in my TFSA is is not advantageous to take it out. This is because any individual cannot put that money he or she takes out until the following year.
I decided do buy call options.
On July 14, I purchased 3 call options of TD with Aug 21, 2015 expiration with a $52.00 strike price. The premium paid was $1.20 per contract excluding commissions.
Total Cost with commissions = 3*100*1.20+$12.95
= $372.95
This trade is on the Canadian exchanges.
Disclosure: own 100 shares of TD
DISCLAIMER:
I
am not a financial planner, financial advisor, accountant or tax
attorney. The information on this blog represents my own thoughts and
opinions and should NOT be taken as investment or business advice.
Every
individual should do their due diligence to make their own financial
decisions based on their financial situation and tolerance for risk.
Options are a safe way to play the market as you wait to save up more money. I started a position today on Corus (CJR.B.) I think it's a little oversold so I bought 100 shares. Good luck with your call options. Hopefully the second half of the year will be better than the first for our economy.
ReplyDeleteLiquid,
DeleteThanks for dropping by. I was able to exit the trade two days later when my limit order was filled.
Nice trade
ReplyDeleteDaniel,
DeleteThanks for dropping by. I was able to exit this trade on July 16 when my limit order went through. I place the limit order at a price I would like to exit as I am unable to access the markets while at my job. I am happy with the return.
Why don't you trade options through interactive brokers. Commissions are much cheaper.
DeleteDaniel,
DeleteI do not use Interactive Brokers at this time as I am mostly an investor. I do not have $10000 to open an account with them. It would be something I would strongly consider though if I traded more often.
My broker, Questrade, the options can be cheaper if being an active trader which means you pay a fee to have real time quotes and other benefits.
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ReplyDelete