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Wednesday, October 22, 2014

Invest and retire before you die - The Bank of Nova Scotia (BNS)

Have you ever wondered how an investment in a boring, blue chip company that pays dividends to share holders and periodically grows those dividends performs over long periods of time?

Welcome to the Invest and retire before you die series, where I explore the merits of long term investments in Canadian blue chip companies that pay and grow their dividends every year. I have seen these studies for American companies in the past and figured it would be nice for people to find something equivalent for Canadian ones. Notice that many Canadian blue chips companies are also listed in American exchanges and are therefore easily available to US investors.

Tuesday, October 21, 2014

Closed November $RUT 910/920 Credit Put spread

Today I closed the RUT November 910/920 Credit Put spread that had been entered as part of an adjustment made to the Put side of the 1020/1030/1230/1240 Iron Condor played with October options.

Saturday, October 18, 2014

Weekend Portfolio Analysis (October 18, 2014)

There's a colleague at work who is a terrible trader (Sorry John! you said so yourself. You know how much I love you). Anyways, he is a very smart guy and has been trading for 2 decades. He obviously knows way more than I will ever know about the markets. He's able to articulate concepts really well and knows every single options strategy you can think of. However,..........he's pretty good at losing money little by little. Not huge draw-downs, but consistent frequent small losses. He realized that will always be the case. Yet, he still trades! He does it for fun, to satisfy his addiction. He just trades a very small amount that doesn't represent anything to his family at this point in his life, but he admits he just can't get away from it. I don't blame him! I don't blame him at all. You know why? Because of weeks like this one we just had! Even if I lose money, provided it is not a serious draw-down, it is great to live through this. Few things make you feel alive as the markets. It's great to be in touch with your raw feelings, in constant conflict between greed and fear and it's great entertainment value to see everybody panicking and talking about the markets.

This was a very exciting week. The S&P500 started the week at 1905.65 and closed at 1886.76. Just a 1% decline! Did you know it was just a 1% decline after all the panic we experienced? Only 1% after all.

Friday, October 17, 2014

Credit Put Spread roll up for profit and new credit received

Today I closed the SPX 1595/1600 Credit Put spread for 0.15 debit. This spread was entered 2 days ago as an adjustment. Here are the details of that entry.

Wednesday, October 15, 2014

November 2014, SPX Put spread adjustment

Today I made an adjustment to the November SPX 1755/1760 Credit Put spread in the morning.

Tuesday, October 14, 2014

November 2014, RUT Credit Call spread

The market's not overbought. However, today I sold a Credit Call spread on RUT

Saturday, October 11, 2014

Weekend Portfolio Analysis (October 11, 2014)

The S&P500 went from 1970.01 down to 1906.13 for a 3.24% decline. That's pretty significant and unusual.

RUT was even weaker and went from 1107.36 to  1053.32. A 4.88% loss. So weak that I had to adjust my 1020/1030 October Put spread. In my previous Weekend Portfolio Analysis I said "All three positions look pretty good to me and they shouldn't be a problem in the next few days". Which is right. They were looking good, and unlikely to be in trouble. A 4.88% correction in the span of a week is an unlikely event. Adjusting sucks. But it's part of the game. Perhaps the most crucial one.