Trading Account Update

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                                # of trades :                 22
                               Total Capital added:    $250.00
                               Trading Acct Balance:  $ 2180.46
                               Average Drawdown:   $29.22
                               Average Loss:             $51.83
                               Average Accuracy:    86.36%
                               Average Risk:              $36.39
                               Average Reward:         $67.25
                               Average R/R :             1: 1.848

     
       I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account with stay within the account.

Note:  The trades are listed under the Trading Tab above with all the trades listed as of Aug 28, 2016

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.

Recent Buy

   

  On Aug 23rd of 2016, I purchased 300 shares of IAMGOLD Corporation  at $5.84 a share.  THe total cost of this purchase is $1756.95 including commissions.

 IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development, and exploration projects and continued assessment of accretive acquisition opportunities. (source: www.iamgold.com)

       I was attempting to sell covered calls with a $6.00 strike price, but the stock fell over the next couple of days.  So I decided to average down.  But I didn't buy additional 300 shares directly.  I sold 3 put contracts with a $5.00 strike price and an expiration date of Sept 16, 2016.  I received a premium of $53.05 after commissions.  If the stock goes sideways or stays above $5.00 at expiration, I keep the premium.  If the option is assigned, I will have bought 300 additional shares at a reduced cost basis.

I will update my investing tab spreadsheet in early September.

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.

Option Trades

         A way to make money in the markets is to SELL options. The way to get more out of your positions is to write covered calls to collect option premiums.  To buy more shares of stock , an investor can sell put options up front to get paid a premium for something he or she is willing to do anyway.

Company Potash Corporation of Saskatchewan

On July 25, sold a covered call in Potash Corporation of Saskatchewan (ticker symbol: POT) with a $23 strike price and option expiration date of Aug 19, 2016.  The premium collected on the covered call was $34.05 after commissions.  On Aug 19th this option expired worthless. What does this mean to the covered call writer?  The cover call writer gets to keep the premium he or she was paid and gets to hold on to the stock.

On July 28, I sold a put option in POT with a $21.00 strike price  and option expiration date of Aug 19, 2016.  The premium collected on the naked put is $59.05 after commissions.  This option was assigned on Aug 19, 2016.  The adjusted cost basis of the new 100 shares is ($2100-$59.05+$24.95) is $2065.90.  So I currently own 200 shares of POT.

On Aug 23rd, I sold 2 cover call contracts on POT.  The strike price is $23 per share and the expiration date is Sept 16, 2016.  The total premium collected is $88.05 after commissions.

Company : Royal Bank of Canada

I recently wrote about  a cash covered put for RY that was set to expire on July 29.  This cash covered put expired worthless.  As the option expired worthless, I got to keep the $44.05 after commissions.

On Aug 2nd,  I sold another cash covered put in RY with a strike price of $79.00 and expiration day of Aug 12, 2016.  The premium received was $87.05 after commissions.   This option expired worthless at RY was trading above $79.00 at expiration.  As the option expired worthless, I get to keep the premium received of $87.05.

 On Aug 15,  I sold another naked put in RY with a strike price of $79.00 and expiration day of Sept 2, 2016.  The premium received was $ 46.05 after commissions.

I currently to not hold a position in RY.

Disclosure:  Long POT

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.