Tuesday, December 2, 2014

Trading summary: going Looooooooooonnnng

To further account transparency for all of my 3 readers, I will start updating all of my moves to my trading account, and perhaps talk vaguely about the moves I'll do in my TFSA, RRSP, and sons' RESP.  (Think tax free, tax deferred, and education accounts for you non-kanuckistan residents)

Here's the brick:

The move: STO (sold to open) a $32 Put on IPL (Inter pipelines - An oil pipeline company).
Credit $1.15  ($115-$1.50 commission)  $113.50

NB: This put is ITM (in the money).  I am hoping to take assignment of IPL @ $32/s.

With the premiums collected that would give me a cost base on IPL of $30.88.  As the stock closed today @ $31.32, that's not too bad.  The stock was trading at $31.26 when I made my move.

If IPL goes up above $32 by December 19th, I'll walk away with my $113.50.   If this is the case, that would represent a 13% annualized yield.

Stay hungry my friends.

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