Account Activity

      In recent weeks, the market has been going up and down a lot it seems with any major news story.  On top of that, Canada is in the middle of a federal election where there is no front runner and the prospects of a minority government, liberal or conservative, are high.
      
Account Activity

    I had no active trades in my trading account the past several weeks.  I also had around $1400 in my margin account.  So I decided to make another trade in the margin account by using the positive margin account balance, "borrowing" the balance of the trading account and using some margin to make a purchase.

    I purchased 200 shares of TFI International (TFII.TO) on the Toronto Stock Exchange.  TFI International is a large trucking company that operates under various subsidiaries in Canada, United States and Mexico.  

    I purchased 200 shares at $39.20 for a total cost of $7844.95 including commissions.  The reason that I used some margin to purchase a board lot of shares is to sell covered calls against the position.  

   On Sept 26, I sold 2 covered call contracts with October 18, 2019, expiration date and a strike price of $40.00.  I collected a net premium of $88.05 on this transaction for being the seller of the option.

   I purchased the 200 shares of TFI International prior to the ex-dividend date.  TFI International currently pays a quarterly dividend of $0.24 per share, or $0.96 per share annually.  So I will receive the quarterly dividend payment of $48.00 in the middle of October.  

   My plan is to use the premium collected, dividends and capital gain to help pay down debt. I will hold back around $5.00 to more than cover the margin interest per month.  Therefore, the dividend is not going to show up in my dividend tabs for the month.   If option expires than I will sell another covered call or place a limit order to sell at a higher price.

Disclosure: Long 50 shares of TFII.TO inside TFSA

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.