Saturday, January 31, 2015

Portfolio Update - January 2015

   The first month of 2014 is now behind us.  During the month of January, the price of a barrel of crude oil stayed low and is currently at  $47.85 on the NYMEX.  This drop in price has a big effect on my portfolio due to the weight on the energy sector in my portfolio.

Click to Enlarge

Shares added due to drip

4 shares of ERF @ $10.44 for a total of $41.76
1 share of KMP @ $10.57 for a total of $10.57

Please note, that BNS recently paid a dividend in the last few days. I own this stock directly with the transfer agent and the position is set up as a full drip. Therefore, when the price is determined of the dividend reinvestment, I will gain some partial shares of BNS. 
        My cash position in low at the moment.  During the month I made a couple of trades and plus had an option assignment. My recent put option in Royal Bank, which you can read about here, was assignment as the price was below my strike price at expiration. My plan, initially, if this put option was assigned was to sell covered calls on this position.  With selling, or writing, a covered call I will be paid the premium up front for the obligation to sell my 100 shares at the strike price before or at expiration. When an covered call is exercised,  The premium paid is added to the proceeds of sale, which means a greater capital gain or smaller capital loss. Due to the price of the stock fallen to $71.74, I have abandoned the covered call strategy and will look to average down.  Royal Bank is a solid company and has a history of raising dividends and has paid dividends consistently for a long time.
       On January 13, I purchased  600 shares at $2.40 a share for a total of $1446.00 including commissions of Sherritt International in my margin account. You can read about this recent trade here. I have traded this stock in the past and was profitable on both trades.
        On January 16, I purchased 500 shares of Bombardier Inc. Class B shares inside my TFSA at $2.75 per share. The total cost of this transaction is $1380.00 including commissions, which you can read about here.  For disclosure, I also own 1000 shares of Bombardier Inc. Class B shares in my margin account for investment purposes. 

      As of Jan 31, 2015, the value of my portfolio stands at $75607.84. This is an increase of 1.017% over last month. I have experienced drawdown on my TD and RY positions. I believe these are solid companies to have in my portfolio going forward and will look to average down on these positions in due course. I also contributed some cash to my portfolio.

I will update my investing account tab above.

Disclosure: Long KMP, ERF, BNS, RY, TD

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 be NOT 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


  1. Congrats on the dividend income. And im sure the RY exercise isnt a bad deal....Ive been thinking of picking up some RY shares myself...but am low on cash too.

    Best wishes

    1. Roadmap2Retire,

      My put option in RY was for $80.00. So with the cost basis is around $79.40 and the stock is trading around $72.00 now. Since I believe in the long term vision of this company, I feel confident holding this stock and averaging down.

  2. Way to go on getting your dividend income. Interesting to see that you're pursuing with option tradings. That's something I haven't done but maybe I should look into it in the future.

    I'm low on cash too... first world problem right?

    1. Tawcan,

      Thanks for dropping by. It is always nice to receive the dividend income. As far as option trading goes, I have sold options in the past. Royal Bank is the third one that was assignment. The other two are TD and RCI.B. Selling naked put options allows an investor to get paid while waiting for the stock to go down.

      Often times an investor will find themselves strapped for cash.

  3. Hi Investing Pursuits

    Interesting that you have a positive month there when most other investors are having a negative month.

    Another interesting to note that most bloggers are low on cash at this point, I guess as Tawcan has pointed out, it's a real first world problem to have ;)

  4. B,

    Thank for dropping by. It was strange that I had a positive month as energy is big part of the portfolio. The price of some of the REITs I own have increased in value and the money that I put in the account via deposits have contributed to the positive increase.

    After a large portion of your portfolio in one sector can be disadvantageous. Large drops in this sector will cause a portfolio to decrease in value rather substantially.