Thursday, 30 July 2015

Options Trade - AGCO and SU

This week, I took advantage of AGCO's volatile share price to make some extra $$$ with options.

On July 29, AGCO's share price plunged from $54.19 to $50.25. This surprised me as their quarterly results, also published on July 29, were quite good. So I decided to close my call option: 

Jul/28/2015 BTC 1 AGCO Nov 20 '15 Call @ 1.45 ($11.20 commission)
Jul/20/2015 Sold 1 AGCO Nov 20 '15 Call @ 2.60 ($11.20 commission + $0.01 SEC fee)
Profit: $92.59
Annualized Return: 91.9%

The very next day, AGCO's share price popped above $55. So I decided to re-sell the exact same call.

Jul/29/2015 Sold 1 AGCO Nov 20 '15 $55 Call @ 2.60 ($11.20 commission + $0.01 SEC fee)



Yesterday evening, Suncor published some very good quarterly results and raised the dividend 3.6%. That caused the share price to close up 6.3% today. This was the perfect opportunity for me to close my put option:

Jul/30/2015 BTC 1 SU Dec 18 '15 $35 Put @ 1.65 ($11.20 commission)
Jun/15/2015 Sold 1 SU Dec 18 '15 $35 Put @ 3.15 ($11.20 commission)
Profit: $127.60
Annualized Return: 32.4%


Monday, 20 July 2015

New Purchase and Short Put - Baytex Energy

Oil continues to drop and I continue to buy.

On July 20, I initiated a position in Baytex Energy.

This company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Approximately 82% of Baytex's production is weighted toward crude oil and natural gas liquids. 

Number of shares purchased
100
Price per share
$14.95
Commission
$9.95
Total cost per share
$15.05
Total cost
$1,504.95
Annual dividend per share
$1.20
Initial dividend yield
8.0%
Increase in forward 12-month dividends
$120.00



My dividend income is now $9,464 per year.


At the same time, I also sold a put on BTE:

Sold 1 BTE Put Jan 15 '16 $15 Put @ 2.15 ($11.20 commission)

Days Held (sell date to expiry): 179

Net Premium: $203.80

Annualized Return = ($203.80 / ($1,500 - $203.80)) * 365/ = 32.0%

Thursday, 16 July 2015

New Purchase - Cummins

On July 14, Cummins increased its annual dividend by 25%, from $3.12 to $3.90 per share per year.

I initially purchased 25 shares @ $136.40 in Sept 2014 and decided to average down yesterday.

Number of shares purchased
15
Price per share
$130.40
Commission
$9.95
Total cost per share
$131.06
Total cost
$1,965.95
Annual dividend per share
$3.90
Initial dividend yield
3.0%
Increase in forward 12-month dividends
$58.50


My dividend income is now $9,344 per year.


Tuesday, 7 July 2015

New Purchase - Chevron

On July 7, I added to my CVX position.

Number of shares purchased
23
Price per share
$93.70
Commission
$9.95
Total cost per share
$94.13
Total cost
$2,165.05
Annual dividend per share
$1.07
Initial dividend yield
4.55%
Increase in forward 12-month dividends
$98.44


My dividend income is now $9,236 per year.

Seeing all the red in my portfolio doesn't do much good for my morale, but I'm staying the course. Because

Income = Wealth