I have held Tangerine funds within my RRSP for a few years and then sold out. I kept the cash with Tangerine as a high interest savings account for about 3 years. The interest rate kept dropping and I got more and more frustrated. I decided to make a move.
I transferred my RRSP to my brokerage to make better investments and hopefully better returns.
I decided to start off with international exposure. I decided to go with XAW ETF based in Canada. The ETF is actually called iShares Core MSCI All Country World ex Canada Index ETF. To learn more about this ETF, click here.
I now own 76 units of this ETF. I did not use my own money, except the capital to purchase other positions to help pay for it.
To see how I purchased the first 35 units of XAW, click here.
Steps
From Part 1
- total raised cash was $1004.13.
- total purchase cost of 35 XAW units was $934.34
Now Part 2 (September 2020 to August 28 2021)
- September 21 Covered call on Fortis expired
- September 22 Sold 2 Nov 20 2020 FTS.TO covered calls for net premium of $158.05
- October 27 Bought 2 units of XAW at $$28.25 for a total cost of $56.51 including ECN fees
- November 13 Bought to close 2 Nov 20 2020 $54 FTS.TO covered calls for net cost of $201.95
- November 13 Sold 2 Dec 18 2020 FTS.TO $54 covered calls for net premium of $284.05 .
- December 1 Collected $101.00 dividend from FTS.TO
- December 14 Bought 8 units of XAW at $30.30 for a cost of $242.43 including ECN fees.
- December 21 Covered call expires worthless
- January 6 Received XAW distribution of $10.23
- January 25 Sold 2 April 15 2021 FTS.TO $54 covered calls for net premium of $78.05.
- January 27 Bought 2 units of XAW at $31.58 for a cost of $63.17 including ECN fees.
- March 1 Collected $101.00 dividend from FTS.TO
- April 16 Covered call is assigned.
- April 28 Purchased 400 shares of Telus Corporation.
- April 30 Bought 6 units of XAW at $32.77 for cost of $196.64 including ECN fees
- May 10 Sold 4 June 18 2021 T.TO $27 covered calls for net premium of $66.05
- May 10 Bought 3 units of XAW at $32.60 for cost of $97.81 including ECN Fees.
- May 12 Bought 14 units of XAW at $31.60 for a cost of $442.45 including ECN fees
June 8 Covered calls are assigned.
June 14 Purchased 400 shares of New Flyer Group (NFI.TO)
June 14 Sold 4 July 16 2021 NFI.TO $27 covered calls for net premium of $126.05
June 28 Covered calls on NFI.TO were assigned
June 30 Received XAW distribution of $15.82
July 5 Bought 100 shares of CP Rail
July 6 Sold 1 Sept 17 2021 CP.TO $95 covered call for net premium of $164.05
July 19 Bought 6 units of XAW at $33.75 for cost of $202.52 including ECN fees
Summary:
From Part 1 Total cash available = $1004.13
Total costs of purchases = $934.34
Total cash after part 1 is $69.79
Now for Part 2
Option Premiums Received = $158.05 +$284.05 +$78.05 +$66.05 +$126.05 +$164.05
= $876.30
Dividends / Distributions received = $101.00+$10.23+$101.00+$15.82
= $228.05
The total amount is $1104.35
Purchase cost of 41 units of XAW = $56.51 +$242.43 +$63.17 +$196.64 +97.81+ $442.45+$202.52
= $1301.53
Purchase cost of Buy to Close option = $201.95
The total cost is $ 1503.48.
So, we have the following as of Aug 28, 2021:
$69.79 (left over from part 1) + $1104.35 - $1503.48 = - $329. 34 .
I am short $329.34. So I will have to collect dividends and sell more option premiums to get this number to be positive. Currently, I can received dividends from the CP Rail position and from XAW itself. I also have a covered call on CP Rail that with an September 17 2021 expiration date.
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.
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.
