Credit Spreads

Credit spread, involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. Investors receive a net credit for entering the position, and want the spreads to narrow or expire for profit.

$MA and $NFLX were opened on April 27th.  $AAPL was opened on April 28th.  

$NFLX, this is my first time trading Iron Condor.  In order for me to keep my premiums, $NFLX has to be in the range of $140-165.  Currently it is trading at $152.20 as of April 29th.  

$MA, this is a bull put spread.  In order for me to keep my premiums, $MA has to be trading above $100.  Currently it is trading at $116.32 as of April 29th.  

$AAPL, this is a bull put spread.  The range is tighter than what I like it to be at, but I'm looking for a quick trade here with time decay accelerating fast into next week.  In order for me to keep my premiums, $AAPL has to be trading above $140.  Currently it is trading at $143.65 as of April 29th.  

Q1 Update of Stock Additions

2017 has been a more active year than last for sure.  Here is my quarter one update on my stock additions throughout my accounts:

Account	Ticker	Q1 Gain/Loss %
RRSP	SRU.UN	1.59%
TFSA	EMA.TO	3.73%
TFSA	FTS.TO	7.74%
TFSA	RPI.UN	19.28%
MARGIN	PTM.TO	-17.20%
MARGIN	CBRL	-0.50%
MARGIN	GILD	-2.07%	ASSIGNED @ $70
MARGIN	KR	-4.35%	ASSIGNED @ $31
MARGIN	SBUX	8.22%	ASSIGNED @ $55.50
MARGIN	SKT	-5.46%
MARGIN	TEVA	-9.77%	ASSIGNED @ $35

Over the past few months, I've been selling a lot of puts for extra income on the side in my margin account.  However, if the stock price goes below your strike price, you will get assigned 100 shares of each contract you sell.  I've been assigned on four stocks thus far.  When I get assigned shares, I usually sell cover calls to try to get rid of the stock.  

Current short options on assigned stocks (multiple of 100):

GILD May5 CALL @ $72 - Collected $0.41

KR May19 CALL @ $32 - Collected $0.20

SBUX May19 PUT @ $52.50 - Collected $0.74

SBUX May19 CALL $57.50 - Collected $0.49

TEVA May19 PUT $32.50 - Collected $1.33

TEVA May19 CALL $35 - Collected $0.22

Since, I've been assigned shares, my USD cash is in the negative of $12.5k.  $SBUX will most likely be called away by May19.  $GILD is climbing closer, but they are due to report earnings on May 2nd.  This can go either way.  I am hoping $GILD will beat so I can lower my margin and risk factor.

Expiring Options for April 21, 2017

All of my options for April 21, 2017 expired 'worthless', that's great since I sold calls and puts.  Mid morning, $IMO was trading just below my strike price of $40 and I did not want to get assigned shares, so I closed it early.  Later half of the day, $IMO soared back up above $40.  Doh, I could have made $10 more on that trade, but I had to head out on Friday for lunch and shopping and didn't have time to monitor the trade close to end of trading day.

Realized $342 CAD and $74 USD in premiums for April 21, 2017.

Option	Accounts (Position)
BMY 21APR2017 59.5 C	(-1)
CGX 21APR2017 48 P	(-1)
DOL 21APR2017 98 P	As always, I just watch it go up and up. (-1)
GILD 21APR2017 70 C	(-1)
IMO 21APR2017 40 P	(-1)
PEY 21APR2017 25 P	(-1)
RCI.B 21APR2017 54 P	(-1)

Canada's Big Three Telecom Comparison

Tax season is upon us.  This forces me sift through my trades for the year.  There were a few stocks that were bought in previous tax years, so I have to go back and find my average cost.  Over the years, I've traded brokerages like I have done so with my stocks.  I have lost track of my initial investments.

I used to buy bigger blocks than I do now.  I was fearless... then somewhere along the line, I got scared and started doing smaller trades as time went on.  I held a lot of good stocks back in the day and yet, my lack of patience got the better of me.  

Anyways, let's do a comparison on Canada's big three telecoms.  I used to own $RCI.B (200 shares) many years ago, but I sold them out for a few hundred bucks in profit.  If I only kept it, I'd be in much better shape than holding $T.TO (100 shares) that I currently hold in my RRSP for the past 1 year+.  Who are the leaders in each industry?  Who are best at retaining customers?  How are they growing their revenues?  

RCI.B +13.24%- 1yr 
T.TO +2.92%- 1yr
BCE.TO -0.35- 1yr

But when you compare them all in the five years time span, they all were pretty much on par with each other growing approximately 49%.  Patience wins over short term trading, unless you can pick winning trades after another.

Over trading can sure damper your gains.  If I had just held all the quality stocks I had bought over the years, I'd be in much better shape.  

We have had a great bull run for the past 8 years.  People have been calling for a market crash for a while now... it has yet to materialize.  But I would be cautious in adding positions at this level in case of an upcoming correction.  Take your profits and wait for the dips.