Saturday, October 22, 2016

Option Trades - Update

The 3rd Friday of each month is always an option expiration day. Some stocks have options that are weekly. I had 3 options that were set to expire on Oct 21, 2016.

There was rally in the price of gold lately, which pushed the price of IMG.TO over $5 per share.

       -3 Put IMG.TO $5 Oct 21 2016  =  $53.05 premium collected
       -3 Call IMG.TO $6 Oct 21 2016 = $ 38.05 premium collected

 I previously wrote a covered call in Potash Corporation on the Toronto Stock Exchange

       -2 Call POT.TO $23 Oct 21 2016 = $88.05

In these 3 option trades that expired, I get to keep the premium of $179.15 as seller of options get to keep the premium regardless if market goes up, down, or sideways.

With the price of IMG.TO trading near $5.50 a share on Friday, I decided to write a covered call with Nov 18 2016 expiration date. I sold 3 call contracts with a $6.00 strike price to collect a premium of $41.05 after commissions.

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.

1 comment:

  1. Looks like many DGI bloggers are getting into options trades. Thanks for sharing.