I, therefore, decided to look elsewhere. I decided to sell a put option. So on January 2, I sold a put option in Royal Bank of Canada at an $80.00 strike price at a premium of $95.00 excluding commissions. As I am the option seller, I collect the premium minus the commissions up front. The expiry date of this option is January 17, 2014. If this option is assigned, I plan to write cover calls.
The banking system we have in Canada is very stable, and all 5 major Canadians banks have paid dividends for a very long time.
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Disclosure: I have owned RY in the past as an investment. Long TD, BNS
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.