Savings Hack

  My savings has taken a hit over the past 3 to 4 months.  I had to dig into my savings to pay for dental expenses.  The first dental expense was expected as it was a cleaning.  I then had to go for a second dental appointment expense was for 2 fillings.

About a week later, one of the fillings fell off.  I went to the dentist to get it fixed and the dentist tried to fix it.  It was a complete failure.  The dentist did not freeze my mouth and would do a little bit of bonding and then get me to feel it.  It was torture.  There was no charge.

Next week, I will be going to get it fixed.  I am going to make the  dentist freeze my month before any work is getting done.  There will likely be a charge for this.

When ever I got paid, I paid myself first 6% to my savings account.  All this went into a normal savings account.

How did I boost my savings?

My trading account did not have any active trades.  So, I decided to use this money and borrow some money on margin and did some trades.  Any dividends, capital gains and option premiums would be taking out immediately and place in my EQ Bank High Interest Savings Account (referral link).  The interest on this account is 1.25%.  

Trade #1  

Oct 20  - Bought 175 shares of T.TO at $27.74 for a total cost of $4859.71 including commissions.

Oct 22  - Sold 175 shares of T.TO at $27.92 for a total if $4880.79 including commissions.

Profit =  $4880.79-$4859.71

         = $21.08

Trade #2

Oct 26 - Bought 100 shares of ATD.B.TO at $48.25 for a total cost of $4829.95 including commissions.

This trade is still open.  I sold covered calls on the position.

Trade #3  (Covered Call #1)

Nov 1   Sold 1 Nov 26 2021 ATD.B.TO $49 Call at $1.40 for a net premium of $129.05

Nov 26  Covered call expired.

Trade #4  (Covered call # 2)

Dec 2  Sold 1 Jan 21 2022 ATD.B.TO $49 Call at $1.50 for a net premium of $139.05

As of December 24, this option has not been assigned.  The stock now trades under the ticker symbol ATD.TO.  The stock closed at $52.45 on December 24.

I received a dividend from ATD.TO for $11.00 CAD on December 16.

Summary:

Capital gains = $21.08

Option premiums = $268.10

Dividends  = $11.00

I made $300.18 that went directly to my savings.

For disclosure, I also own the stocks mentioned above in my other accounts.  

Note:  - T.TO is the ticker symbol for Telus Corporation

          - ATD.B.TO is the ticker symbol for Alimentation Couche Tard

Note:  ATD.B.TO was merged into ATD.A.TO at 1:1 ratio and ticker symbol changed to ATD.TO

Disclosure:  Long T.TO in TFSA

                  Long ATD.TO in RRSP

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.