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Thursday, October 30, 2014

Second November $RUT Credit Call spread adjustment

Well, another tough day for my November positions. I had to close the RUT 1180/1185 Credit Call spread as it reached the 30% probability of being in the money level.

Invest and retire before you die - RioCan Real Estate Investment Trust (REI.UN.TO)

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.

If you are interested in other companies already discussed as part of this series, you can check out:
Invest and retire before you die - The Bank of Nova Scotia (BNS)
Invest and retire before you die - Emera Inc (EMA)

Tuesday, October 28, 2014

November 2014, RUT Credit Call Spread adjustment

Today I had to make an adjustment to my infamous RUT 1150/1160 Credit Call spread.

Sunday, October 26, 2014

Invest and retire before you die - Emera Inc (EMA)

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.

If you are interested in other companies already discussed as part of this series, you can check out:
Invest and retire before you die - The Bank of Nova Scotia (BNS)

Saturday, October 25, 2014

Weekend Portfolio Analysis (October 25, 2014)

We had an exceptionally strong week in the markets with SPX going from 1885.62 to 1964.58 for a +4.2% gain. I don't know how this week ranks in the entire history of the markets, but it is the strongest week I've ever reflected in my three years doing the Weekend Portfolio Analysis.

I made two trades in my options trading portfolio. First, on Tuesday I closed the RUT November 910/920 Credit Put spread for a profit. This trade was originated as an adjustment to an October Iron Condor. Closing the spread allowed me to remove downside exposure in the portfolio and it also turned the whole October Iron Condor into a profitable play, adjustment costs included. Then on Friday I entered an SPX December 1750/1760/2070/2080 Iron Condor in what should be a comfortable position for at least a couple of weeks.

Friday, October 24, 2014

December 2014 SPX Iron Condor

Today I entered the first trade of the December 2014 monthly options expiration cycle:

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.

Friday, October 10, 2014

October RUT Iron Condor Put side adjustment

Well, the good luck came to an end after some months of peaceful trading without need for adjustments.
This time it was the Put side of the October RUT 1020/1030/1230/1240 Iron Condor as RUT has just been lifeless in the last few sessions.

Monday, October 6, 2014

Investments in Potash (POT.TO) and Finning International (FTT.TO)

Today I invested almost 3K in my Tax Free Savings Account (TFSA). I'm doing it aggressively lately as I'm trying to max out the contribution room available in that account (equivalent to a Roth IRA in the US). Starting this year I had $31,332.58 of room. I had already started investing in October 2013 but using an Individual Taxable account as Questrade doesn't open TFSA accounts for non-Canadian citizens. But I recently became a Canadian citizen, opened my TFSA account with Questrade and continued my investing activity prioritizing this account where all the growth you get is tax free.

Saturday, October 4, 2014

Weekend Portfolio Analysis (October 4, 2014)

This week I sold a November SPX 1755/1760 Credit Put spread on Wednesday and I initiated a long term investment position in Agrium Inc on Thursday attracted by lower prices in this stock and its yearly dividend of 3.41%. My projected passive dividend income is now close to $150 bucks a month on average. Not a large amount by any means, but money I don't have to work for for the rest of my life. All I have to do is be able to breath and keep myself alive for 30 days to get that favorably taxed income.

Thursday, October 2, 2014

Investment in Agrium Inc. (AGU.TO)

Today I started a hopefully long term position in Agrium, a global producer and marketer of nutrients for agricultural and industrial markets.

This goes to my TFSA account (similar to Roth IRA for US citizens), where I still have room for about 13 grand extra to invest tax free.

Wednesday, October 1, 2014

November 2014, SPX Credit Put spread

Today I entered an SPX 1755/1760 Credit Put spread with November options: