Wednesday, 25 March 2015

Options Trade - CSX

Earlier this week, I placed a limit order which went through today. The trade:

Sold 1 CSX Put Jan 15 '16 $30 Put @ 1.55 ($11.20 commission + $0.01 SEC fee)

Days Held (sell date to expiry): 296
Net Premium: $143.79

Annualized Return = ($143.79 / ($3,000 - $143.79)) * 365/296 = 6.2%

I don't mind the "low" return because I feel the risk I'm taking is also low.

The most likely outcomes of this trade are:
  1. Shares are trading above $30 at expiration. I will get to keep $143.79 in net premiums.
  2. CSX is trading below $30 at or before expiration and shares are assigned. I will receive 100 shares of CSX at a net cost of $28.56/share.


Tuesday, 17 March 2015

New Purchase - Fastenal


On March 16, I initiated a position in Fastenal.

Number of shares purchased
40
Price per share
$40.90
Commission
$9.95
Total cost per share
$41.15
Total cost
$1,645.95
Annual dividend per share
$1.12
Initial dividend yield
2.72%
Increase in forward 12-month dividends
$44.80

I’m following Josh Peters on this one.

My dividend income is now $8,094.51 per year.

On another note, I’m disappointed with my purchases of ACN and ETN. I purchased these in a TFSA account thinking there was no dividend withholding tax on Irish based companies. After receiving my first dividend from each company, I called my brokerage firm to ask why a dividend withholding tax had been applied. Turns out that to avoid the withholding tax on Irish based companies, I would have to pay an administration fee of $25.00 per quarter per stock! I like these companies, but despise the withholding tax. I might trade these two for something like DEO, RDS.b, UL or VOD.

Wednesday, 4 March 2015

Options Trade - Loblaw's


On March 3, I sold a put option in Loblaw’s.

Sold 1 L Put Oct 16 '15 $60.00 Put @ 3.40 ($11.20 commission)

My net premium is $328.80.

Days Held (sell date to expiry): 227
Net Premium: $328.80

Annualized Return = ($328.80 / ($6,000 - $328.80)) * 365/ 227 = 9.3%


The most likely outcomes of this trade are:

1. Shares are trading above $60.00 at expiration. I will get to keep the $328.80 in premiums.

2. L is trading below $60.00 at or before expiration and shares are assigned. I will receive 100 shares of L at a cost of $56.72/share.

Tuesday, 3 March 2015

New Purchase - HCP


On March 2, I used the money from the sale of 50 shares of TGT (Dec 12, 2014) to re-initiate a position in HCP.

Number of shares purchased
100
Price per share
$42.15
Commission
$9.95
Total cost per share
$42.25
Total cost
$4,224.95
Annual dividend per share
$2.26
Initial dividend yield
5.35%
Increase in forward 12-month dividends
$226.00

Unfortunately, my annual dividends were significantly reduced when Ensco cut its dividend by 80%. With the purchase of HCP, my dividend income stands at $7,993.16 per year.

Below is a list of my dividend increases and decreases so far this year - and it's not pretty:

Company
2015 Div. Increase
$$$ Increase
Accenture


AGCO
9.1%
$4.04 USD
Baxter International


BHP Billiton


BP


Canadian Utilities
10.3%
$2.75 CAD
Chevron


CSX


Cummins


CVS Caremark
27.3%
$30.00 USD
Deere


Eaton
12.2%
$12.00 USD
Enbridge
32.9%
$120.98 CAD
Ensco
-80.0%
-996.00 USD
IBM


JP Morgan


Kraft


Norfolk Southern


North West Company


Occidental Petroleum


Reckitt Benckiser


Rogers Comm
4.9%
$24.75 CAD
Saputo


SNC Lavalin


Suncor Energy


Target Corp.


Telus
5.3%
$11.64 CAD
Tesco
-100%
-16.50 USD
Teva


TD
8.5%
$16.00 CAD
Vodafone
2.0%
---
Walgreen Co


Total

-$790.34