Option Trades

         A way to make money in the markets is to SELL options. The way to get more out of your positions is to write covered calls to collect option premiums.  To buy more shares of stock , an investor can sell put options up front to get paid a premium for something he or she is willing to do anyway.

Company Potash Corporation of Saskatchewan

On July 25, sold a covered call in Potash Corporation of Saskatchewan (ticker symbol: POT) with a $23 strike price and option expiration date of Aug 19, 2016.  The premium collected on the covered call was $34.05 after commissions.  On Aug 19th this option expired worthless. What does this mean to the covered call writer?  The cover call writer gets to keep the premium he or she was paid and gets to hold on to the stock.

On July 28, I sold a put option in POT with a $21.00 strike price  and option expiration date of Aug 19, 2016.  The premium collected on the naked put is $59.05 after commissions.  This option was assigned on Aug 19, 2016.  The adjusted cost basis of the new 100 shares is ($2100-$59.05+$24.95) is $2065.90.  So I currently own 200 shares of POT.

On Aug 23rd, I sold 2 cover call contracts on POT.  The strike price is $23 per share and the expiration date is Sept 16, 2016.  The total premium collected is $88.05 after commissions.

Company : Royal Bank of Canada

I recently wrote about  a cash covered put for RY that was set to expire on July 29.  This cash covered put expired worthless.  As the option expired worthless, I got to keep the $44.05 after commissions.

On Aug 2nd,  I sold another cash covered put in RY with a strike price of $79.00 and expiration day of Aug 12, 2016.  The premium received was $87.05 after commissions.   This option expired worthless at RY was trading above $79.00 at expiration.  As the option expired worthless, I get to keep the premium received of $87.05.

 On Aug 15,  I sold another naked put in RY with a strike price of $79.00 and expiration day of Sept 2, 2016.  The premium received was $ 46.05 after commissions.

I currently to not hold a position in RY.

Disclosure:  Long POT

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.