Trading Account Update

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                                # of trades :                 22
                               Total Capital added:    $250.00
                               Trading Acct Balance:  $ 2180.46
                               Average Drawdown:   $29.22
                               Average Loss:             $51.83
                               Average Accuracy:    86.36%
                               Average Risk:              $36.39
                               Average Reward:         $67.25
                               Average R/R :             1: 1.848

     
       I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account with stay within the account.

Note:  The trades are listed under the Trading Tab above with all the trades listed as of Aug 28, 2016

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.

Recent Buy

   

  On Aug 23rd of 2016, I purchased 300 shares of IAMGOLD Corporation  at $5.84 a share.  THe total cost of this purchase is $1756.95 including commissions.

 IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development, and exploration projects and continued assessment of accretive acquisition opportunities. (source: www.iamgold.com)

       I was attempting to sell covered calls with a $6.00 strike price, but the stock fell over the next couple of days.  So I decided to average down.  But I didn't buy additional 300 shares directly.  I sold 3 put contracts with a $5.00 strike price and an expiration date of Sept 16, 2016.  I received a premium of $53.05 after commissions.  If the stock goes sideways or stays above $5.00 at expiration, I keep the premium.  If the option is assigned, I will have bought 300 additional shares at a reduced cost basis.

I will update my investing tab spreadsheet in early September.

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.

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.

Recent Buy -- Changes

      On my dividend update posts I write something on the bottom about a REIT that I own in my margin account and that I do not account for the distribution as income.  The REIT is Dream Office REIT, which is an office REIT in Canada.

      Prior to Friday the adjusted cost base was near $32 per unit. This does not take into account the adjusted cost base will be lower from the Return of Capital.  As I owned this REIT for a few years, the Return of Capital , as part of the distributions, reduces the cost basis. I have owned this for awhile and collected about $2000 in distributions.  It has been difficult to find opportunities on the Toronto Stock Exchange as the telecoms, banks, and railroads are trading at or near their 52 week highs.  I do not see this rally in the price of oil as being substainable for the long term.  So Dream Office REIT, whose ticker symbol is D.UN, was trading near $16 per unit.  Why is the price so low?  D.UN has office space in Alberta and Alberta is going through a major depression due to the low oil prices.  The problems with less demand in office space in Alberta and a few other factors, have meant a distribution decrease in the past year of approximately 33%. 

     On Aug 19, 2016 , I purchased 300 units at $16.14 per unit for a total price of $4849 including commissions.  The annual distribution currently is 1.50 per unit. This purchase has $450 to my annual dividend income.

     So what is the change?  So previously I viewed the 300 units that I already owned as a trade and never accounted for the distributions as dividend income.   So, I decided to change the reason why I was holding the REIT in the margin account, and will now account for the distributions from these 300 units as dividend income.  This type of change is not something that should be done, as you enter into a position for a specific reason and it is best to stick with that reason.  This will be reflected in my distribution reports going forward starting with the dividend income report for the month of September.
   
    With 600 units of Dream Office REIT paying a monthly distribution of $75, my annual dividend income will increase by $900 a year.

Note:  I own 140 units of Dream Office REIT inside my TFSA also

I will update my investment tab spreadsheet in early September to reflect in increase of 300 units.

Disclosure:   Long D.UN

Photo Credit:  www.dream.ca

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.

Dividend Update - July 2016

      The month of July is another month of dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

       The markets continue to go higher in the month of July.  On the flip side, the price of a barrel of WTI Crude Oil fell below $40 dollars a few times.  With the price of oil near $40 dollars, this will continue to have a major effect on economies that are dependent on oil. 

      One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds.

 Non-registered Account

• Bell Canada Enterprises - (BCE) - $68.25
• Enerplus (ERF)  -$ 5.58
• Bank Of Nova Scotia (BNS)  - $22.93
• Bank Of Nov Scotia  (BNS) - $14.40
• Rogers Communications Class B (RCI.B) - $96.00
• Shaw Communications (SJR.B)    - $19.75

TFSA

• Boston Pizza  Royalties Fund (BPF.UN)   - $26.91
• Claymore 1-5 yr Laddered Corporate Bond ETF (CBO)  - $0.68
• Cominar REIT (CUF.UN ) - $5.39
• Dream Office REIT   (D.UN)  - $ 17.50
• Killam Properties REIT (KMP.UN) - $  15.10
• Horizons Natural Gas Yield ETF - $3.08
• Transforce (TFI) - $8.50

Total = $304.07

        This total represents a 4.60% decrease from 3 months ago and 0.566% decrease year over year.

      I also received another distribution payment of $37.50 for my swing trade in Dream Office REIT in my non-registered account. This is not listed above since it is a trade, so I keep the money in the account and do not pay myself first with this payment. I have received $1958.97 in distributions so far on this trade.  Dream REIT has reduced the amount of distribution they pay monthly which was announced in February.

     I will update my dividend income tab with the new amount. It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for July?

Disclosure : Long all securities above.

Photo Credit: www.mipaq,co.za

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.

Portfolio Update - July 2014

The month of July 2016 is now behind us.  What continues to be the big headline month after month?  The price of a barrel of WTI Crude Oil fell below $40.00.  In Canada and the United States we have stock markets that are at an all time high.  A province in Canada, Alberta, is feeling the full effects of the low oil prices.  We have companies that service the oil patch, who have laid off a large amount of their work force and reduced hours of most of their employees.

On July 27, the initiated a new position in HNY, which is the Horizons Natural Gas Yield ETF.  This purchased was done over two separate purchases on the same day.  I purchased 94 units for a total of $1490.07.  My brokerage offers free commission ETFs, but their were ECN fees of $0.329.  The distribution of this ETF is paid monthly and varies month to month.  July 27 was the ex-dividend date, so I am not eligible for the distribution payment that is paid this month.

Shares Acquired Through DRIPS

0.347633 Shares of BNS.TO @ $65.96 per share.
  
   As of 4 Aug 2016, the value of the portfolio is  $92717.06  This is a 5.74% increase over last month's total.  The spreadsheet in the investment tab above has been updated.


Disclosure: Long  all mentioned securities.

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 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