Thursday, 24 March 2016

Update on several transactions

National Bank (NA)
11-Feb-2016, bought 30 shares @ $36.13
18-Mar-2016, sold 30 shares @ $43.42
+20.2% in a little over 1 month
Profit: $218.60

Caterpillar (CAT)
12-Jan-2016, bought 20 shares @ $62.40
18-Mar-2016, sold 20 shares @ $74.85
+20.0% in two months
Profit: $249.06

CSX
9/Nov/2015 Sold 1 $27 Put
18/Mar/2016 BTC $27 Put
Profit: $96.59

Vodafone (VOD)
5/Feb/2016 Sold 1 $30 Put
18/Mar/2016 BTC $30 Put
Profit: $102.59

General Motors (GM)
16/Feb/2016 Bought 1 $30 Call
21/Mar/2016 STC $30 Call
Profit: $112.59

Pfizer (PFE)
22/Mar/2016 Sold 1 Jan 20 '17 $30 Put @ $2.40


I took advantage of the market rally to lock in some profits.

Luckly, not all stocks rallied. This gave me an opportunity to sell a put in PFE and reinitiate a position in Pason Systems (PSI), which I will write about at a later date.

Have a great Easter weekend.

4 comments:

  1. The market rally has definitely given the opportunity to "lock in" profits. Just curious though given some of the names listed why you chose to sell rather than just hold for the long term. Were the gains just too attractive over such a short time to not lock in some of the profits or do you think many of them have moved into overvalued territory?

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    1. Hey PIP,

      The primary reason for selling was because I have doubts the rally is sustainable. Moreover, estimated 2016 EPS for CAT is somewhere between $3.65 - $4.00. At $4.00, CAT has a PE of 19 which is a little high for my taste. Should the stock price decline to the low 60's, I'd be back in.

      As for Canadian banks, my long term holds are limited to TD and BNS - because they do a lot of business outside Canada. I bought NA because it was too cheap to pass up. Then I was granted the opportunity of a quick gain.

      Both these stocks were held inside my TFSA so there is no tax on the gains.

      ADY

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  2. I like your options activities. That's a nice way of enhancing income, which I'm hoping to develop in the next few months. Up to now, I've just been too busy at work to really get into it.

    Thanks for sharing,
    FerdiS, DivGro

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    Replies
    1. To date, I have sold puts, sold calls and bought calls. Unfortunately, after a year and some, I'm not that much further ahead. I lost lots of money on BBL, BTE and NOV. I still think options are fun but be vigilant. I wish you the best and sincerely hope you are more successful than I have been.

      Take care.

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