Income Trade Update

I  did an income trade a while ago with Royal Bank. 

May 15, 2013 - Purchased 100 shares of Royal Bank at 61.26  for a total of 6130.30 including commissions.

May 16, 2013 - Wrote a covered call Jun 22, 2013 62 for a option premium of 69.05 after commissions. I receive this premium right away as I am obligated to sell my shares at 62.00 strike price on or before expiration date. The option expired an I got to keep my shares.

June 26, 2013 - Wrote second covered call July 19, 2013 62 for an option premium of 39.05 after commissions. Like above I received this immediately in my brokerage account.

July 19, 2013 - My shares were called away as the price of  Royal Bank went up over $65 a share.
The assignment has a commission of 12.00 for the broker I use.


Total Return = Profit / Money invested
                     = (6200-6130.30+39.05+69.05-12.95)/6130.30
                     =2.689%

NOTE : I originally used an option assignment charge of $12.00, but after checking trading confirmations noticed it was changed to $12.95.


So what did I do with the option premiums and the capital gain from this trade ( Total $165.80). It stays in my brokerage account.

I missed the dividend record date for Royal Bank when I purchased the stock.

So for comparison sake, if I just sold the shares at $62.00 (assuming $4.95 commission to sell)
             Total Return = (6200-6130.30-4.95)/6130.30
                                  = 1.06%

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

Dividend Income for June 2013

June 2013 has come and gone. During the month, passive income through dividends having been paid to me.
The total for this month is  $175.59. 

Currently I am unemployed so there will be now new capital added to the accounts until I find employment. Therefore my dividend income will not increase much and some of it will be used to pay my investing line of credit.

I will update my dividend tab with the above  total.

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 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.

You Never know !!!

I recently left a job over something stupid that I did. Never knew how good I had it until I am no longer working there.

Am I going to be OK? Yes because I have an adequate funded emergency fund. This is because I delayed gratification by saving and investing money rather then having a car or buying things expensive clothes. Having an adequate funded emergency fund allows me to sleep at night. You never know when an emergency is going to happen whether voluntarily or involuntary. This doesn't negate the fact I made a mistake leaving my job.

What would happen if I didn't have an adequate funded emergency fund. I would have no way to pay rent or pay for food. Since I left the job, after 2 weeks notice, I do not get Employment Insurance as I left the job on my own.

The moral of this is that don't jump to quick and to something you will regret later. I am glad I have an adequate funded emergency fund.

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