Covered Calls on my Horizons

The more I dive into the world of options, the more I want to learn and grow as an option trader.  Finally, I deployed the $5000 cash sitting in my RRSP since early January 2015.  This is very unusual for me to just leave a significant amount of cash sitting in a trading account.  But I was stumped.  The markets are at all time highs and every time I pick a stock to buy, it goes down.  

Last Tuesday, I finally took a leap and bought NA.TO for 111 shares @ $48.10 in my Questrade RRSP account.  Unfortunately, I wasn't set up for option level two trading.  So I couldn't do a covered call (CC) for my newly bought shares right away.  

Once set up, I entered in my CC for Jan 2016 strike @ $50 looking to collect a $2.80 premium.  But my good till cancel (GTC) order was in queue and it didn't fill.  Of course, banks took a tumble for the next few days.  The premiums were getting lower and lower.  But I stood my ground, I didn't want to sell for less than $2.80.

Today, NA.TO jumped back up to my buy in price once again and my CC order got filled.  Patience is key.  Set your limits and play within it.  Haha, I know I'm stealing the casino slogan sort to speak.

I am quite attached to my stocks.  The reason why I never sold covered calls is that I don't want to lose my shares and option commissions in QT ain't cheap.  But I am starting to realize that I need to be less emotional and try to milk as much as I can from my stocks.  

For years, I've been holding a few hundred shares of BMO.TO and IPL.TO in my QT RSSP just DRIPing and collecting dividends.  I think it's time for me to deploy some CC on them to generate more income!  But I would hate to get them assigned though.  To be continued...