Thursday, December 1, 2016

Portfolio Update - November 2016

       The month of November 2016 is now behind us. What a month as we had 2 major events occur. Donald Trump become President Elect of the United States and OPEC agreed to cut oil production by 1.2 million barrels per day. The latter caused a jump in oil prices to slightly above $50 a barrel for WTI Crude Oil.

      On November 11, I sold 2 call option contracts on the 200 shares of Potash Corporation of Saskatchewan (POT) that I currently own which you can read here. The strike price is $25 with a December 16, 2016 expiration date. 

       On November 14, I wrote about purchasing 39 units of Horizon's Natural Gas Yield ETF, whose ticker symbol is HNY on the Toronto Stock Exchange.  My brokerage provides the opportunity to purchase most ETFs commission free.

      November 18 was option expiration day as it is the third Friday of the Month.  I recently sold 3 call contracts with a $6.00 strike price and 3 put options with a $5.00 strike price.  The 3 put option contracts was assigned at expiration, which you can read about here.  I decided to sell 3 put option contracts at $5.00, in order to average down on my position of  IAMGOLD (Ticker Symbol IMG).  When an investor or trader sells a put option, they are obligated to BUY 100 shares of in the underlying stock.  By selling an put option, an investor can collect a premium up front, for something he or she is willing to do anyway.  So, after this put option assignment I owned a total of 600 shares altogether.

     I purchased an additional 300 shares of IMG as the price was lower than $5.00 a share.  With 900 shares and my adjusted cost basis being around $5.22 a share, I am looking to unload these shares with a direct sell or by selling covered calls.  I did not write a post about this purchase. 

      On November 23, I wrote about different Pathways to Retirement. As lot of people invest in Registered Retirement Savings Plans such as a 401k in the United States and RRSP in Canada. These accounts are savings plans where an investor hopes the money grows and stays above the amount they contributed.  Therefore, these plans will affect an investor's net worth.  An investor in a non-registered account can invest for cash flow or capital gains. The cash flow can come from dividends  interests, and selling options to collect premiums upfront.

      On November 29, I wrote about purchasing 50 shares of High Liner Foods Inc (HLF) at $19.99 per share.  HLF trades on the Toronto Stock Exchange.  As people live busy lives and the health recommendations of eating a certain amount of seafood for things such as Omega 3 fatty acids, people will often purchase Frozen Fish products, to reduce their trips to the grocery stores.  HLF also sells their products to restaurants.  I purchased one of their products today at the grocery store today, as it was on sale.

I recently wrote about selling a put option in Royal Bank (RY) with a strike price of $86.00 and an expiration date of December 16, 2016.  A few days after selling this put option, Royal Bank released its earnings.  Investors reacted negatively to these earnings and the stock fell a few dollars but still remained about my strike price.

 Shares Acquired Through DRIP

1 Unit of D.UN.TO @ $16.8635 for a total cost of $16.86           (TFSA)
1 Unit of CUF.UN.TO @ $13.8035 for a total cost of $13.80      (TFSA)

4 Unit of D.UN.TO @ $16.8635 for a total cost of $67.45 (Margin Account)

As of Dec  1,  2016, the value of the portfolio is $96166.29.  This is a 2.22%  decrease over last month's total.  The spreadsheet in the investment tab above has been updated.

 Disclosure:   Long HLF, IMG, RY, HNY

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.

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