The month of October 2016 is now behind us. One of the major issues still facing the world is the low price of a barrel of crude oil and the upcoming US election for President of the United States.
On Oct 3, I sold 1 RY.TO $79.00 Oct 28 2016 put option to collect a premium of $59.05 after commissions. This option was not assigned, but as the seller of the option I get to keep the premium. I currently do not have any option position in RY.
On October 13, I sold my position in Manulife Financial (MFC), which you can read about here. This reduce my annual dividend income by $74.00. I still have my eye on this stock hoping the price will fall below by previous purchase price of $18.61 a share.
October 21 was option expiration day. I had 3 options expire that day which involved POT.TO and IMG.TO. I had 2 covered call contracts with a strike price of $23 expire worthless for POT.TO. I got to keep the premium as I was the option seller. As there was pending meetings involving a merger of Potash Corporation of Saskatchewan and Agrium, I did not look to put on any more covered call positions involved POT.TO. IMG.TO had been trading between $5 an $6 a share, so I previously sold a put option for $21 and a covered call option for $23 for 3 contracts each. The price of IMG dipped well below $5 dollars but rose about $5 and was not assigned.
As the price of IMG.TO was trading below $6 on October 21st, I decided to sell 3 covered call contracts with a strike price of $6 dollars and a Nov 18, 2016 expiration date. You can read about this transaction and the transactions of the previous paragraph, by clicking on this link.
On October 24, I sold 3 put contracts in IMG.TO with a $5 strike
price and Nov 18, 2016 expiration date. I collected a premium of $47.05
after commissions. I did not write a blog post about this transaction.
On October 28, I purchased 140 shares of Westjet Airlines (WJA.TO) at $22.39 per share for a total cost of $3140.04 including commissions. WJA.TO released its earnings a couple of days later and beat expectations. Regardless of this impressive earnings report, the federal government changes the ownership regulations for foreign ownership of Canadian airlines from (25% to 49%) to increase competion with our carriers.The latter, caused the stock price to become lower. WJA.TO currently pays an annual dividend of $0.56 per share. This adds $78.40 to my annual dividend income. I did not write a blog post about this transaction.
On Nov 2, I noticed the price of Canadian Imperial Bank of Commerce (CM) has fallen in price somewhat. So, I decided to take an advantage of this opportunity to pick up some shares. I purchased 28 shares of CM.TO for a total of $2747.65 including commissions. This Canadian bank does not get as much attention as the other 4 big Canadian banks. CM currently pays an annual dividend of $4.84 per share. The purchase of 28 shares of CM.TO adds $135.52 to my annual dividend income. I recently wrote a post, showing the annual dividend amounts going back to year 2000, which you can read about here.
On Nov 3, Potash Corporation of Saskatchewan and Agrium voted to
merge the 2 companies with over each company voting over 97% in favor of
the merger. There is still a lot of hurdles that have to be dealt with
prior to this actually happening.
Shares Acquired Through DRIP
0.333221 Shares of BNS.TO @ $71.51 for a total cost of $23.83
As of Nov 6 2016, the value of the portfolio is $98346.53. This is a 9.03% increase over last month's total. The spreadsheet in the investment tab above has been updated.
Disclosure: Long all mentioned securities.