Option Expiration Day - December 2016

  Option expiration day has come and gone.  Usually options expire on 3rd Friday of the month. I had a covered call and 2 different put option expiry worthless at expiration.

   I recently wrote about selling 9 covered call contracts in IAMGOLD (IMG.TO) stock with a $5 dollar strike price. The fed announced last week they are raising the interest rate by 25bps.  This caused fear in the gold sector and gold stocks fell a lot in value. The option was not assigned, but I still get to keep the premium received of $242.05.  Over 5% return for 8 days is more than welcome.

  I wrote about selling a naked put in Royal Bank of Canada with a $86.00 strike price, which you can read about here. The big 5 banks in Canada continued to march higher in the past few weeks.  This option was not assigned.  I get to the keep the premium received of $25.05 after commissions for being the option seller.

   I wrote about selling 2 covered call contracts in Potash Corporation of Saskatchewan (POT.TO), which you can read about here.  The number of days to expiration was 35. I received a premium minus commissions of $48.05 after commissions.  This option was not assigned.

Summary:

   With these 3 short positions on, I collected total premium of $315.15.  This is $315.15 that I did not have to go to a job in order to accumulate this amount of money.

Disclosure: Long IMG.TO, POT.TO

Disclosure:  Do not own any shares of RY.TO in any account.

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.