big 10 and option 10 portfolios

[selkirk]

first of all was going to post this last week, but had two computers and a hard drive (portable) fry on me last week, within 48 hours, lots of fun...had to new anyways so the only real pain is backing up files again on the computers, ect.....

now that my petty gripping is out of the way..in late september my shareclub picked 10 stocks (third week) and then would take another portfolio with the same stocks and write (sell) covered calls 10% out of the money and three months out.

this starts on Oct. 1 2010
easy to track start of the month

Big 10
Octotber 1, 2010

BCE $33.01 302.9385 $10,000

BMO $59.12 169.1474 $10,000

FTS $31.66 315.8559 $10,000

TRP $38.11 262.3983 $10,000

TCK.b $43.35 230.6805 $10,000

CM $74.26 134.6619 $10,000

CNQ $36.77 271.9608 $10,000

SAP $35.05 285.3067 $10,000

ABX $47.94 208.5940 $10,000

CPG $38.21 261.7115 $10,000

total $100,000

should be noted that the members picked power financial pwf and manitoba tel. I dropped these for ABX barrik gold and tck.b tck resources.

the main reason is that we had no gold stocks which is a large part of the cdn. index, and also no base metal stocks, so tck.b is chosen gives us copper, coal, zinc, etc.

pwf is a good stock but we already have two finanacials, and manitoba tel is a telco with limited growth and they cut their div, new rule cut your div and not allowed for a year or two or three... has recovered and still pays a high yield limited growth would rate it a hold along with pwf.

thanks
selkirk

 

[selkirk]

Option 10 Portfolio

October 1, 2010

bce 3 calls jan 36 .22 = $66

bmo 1 call jan 64 .61 = $61

FTS jan 34 3 calls .30 = $90

TRP Jan 40 2 calls .40 = $80

TCK.b jan 49 2calls .40 = $204

CM jan 80 1.03 1 call = $103

CNQ jan 40 2 calls .75 = $150

SAP jan 38 .50 2 calls - $100

ABX jan 52 1.22 2 calls = $244

CPG jan 42 2 calls .15 = $30

trade costs 12 X 10 = $120

sub total $1,128 money from options

total = $1008 net from options

the idea is to that the market will be flat to up 10-15% however with this rally the big 10 will probably outperform the option 10.

I believe in the option 10 portfolio, note : I hold these stocks in similar portfolios to track them, so in the end I hope they go up, which they are.

will go in more detail and will have to roll up and out some of these options..., it is my belief that the option 10 portfolio is a good choice, however I admit in a roaring bull market the big 10 will do better.

should also note this is a buy and hold there will be no trading around the core positions for a year, similar to an index.

hopefully that does better that the red river resources one passive also we tried here, no one loss more that 30% ever as quick....

thanks
selkirk

 

[selkirk]

Big 10
Octotber 1, 2010 updated december 9, 2010

BCE $33.01 $35.07 302.9385 $10624.05

BMO $59.12 $61.84 169.1474 $10,460.07

FTS $31.66 $32.81 315.8559 $110363.23

TRP $38.11 $37.45 262.3983 $9826.81

TCK.b $43.35 $55.62 230.6805 $12830.44

CM $74.26 $77.17 134.6619 $10391.85

CNQ $36.77 $42.57 271.9608 $11577.37

SAP $35.05 $36.42 285.3067 $10390.87

ABX $47.94 $53.91 208.5940 $11245.302

CPG $38.21 $43.22 261.7115 $11311.17

the first price is the one when the portfolio began and the second is the price on december 2, 2010. all the stocks had 10,000 invested.

should be noted that the resources have been the main sourcce of the gain cpg, abx, cnq, tck.b account for = +6964.28

of the total = 9,021.16

bce bmo trp tck.b (tck in the US), cm, cnq, abx, trade in the US as well as toronto. these are in cdn. dollars. the divs will be added later.

thanks
selkirk


total $100,000

 

[selkirk]

Option 10 Portfolio

October 1, 2010

bce 3 calls jan 36 .22 = $66

bmo 1 call jan 64 .61 = $61

FTS jan 34 3 calls .30 = $90

TRP Jan 40 2 calls .40 = $80

TCK.b jan 49 2calls .40 = $204 buy it back 7.30 sell tck.b may 52 call 2 contracts = +40

CM jan 80 1.03 1 call = $103

CNQ jan 40 2 calls .75 = $150 buy jan 40 3.10 sell 3.50 = $80 2 calls may 42 call

SAP jan 38 .50 2 calls - $100

ABX jan 52 1.22 2 calls = $244

CPG jan 42 2 calls .15 = $30

trade costs 12 X 10 = $120

sub total $1,248 money from options

total = $1224 net from options

okay so rolled out cnq and tck.b, basicallly buy the calls back and sell new ones, another rule is when I do this it has to be for a net credit. however you could have rolled out tck.b to 55 instead of a 52 for only another $1, $200. however that would not be a net credit.

remember the option 10 holds the shares in the big 10 only with covered calls.


will later talk about the stock in the portfolio, the resources are on a run in general the rest are up slightly.

thanks
selkirk

 

[selkirk]

Big 10 Portfolio (October 1, 2010- Feb 7,2011)
price bought current price shares value divs

1. BCE $33.01 $36.45 302.9385 $11042.108
divs = $138.5943

BMO $59.12 $58.90 169.1474 $9962.7818
divs = $118.403

FTS $31.66 $35.07 315.8559 $11077.066
divs = $91.5982

TRP $38.11 $38.00 262.3983 $9971.1354
divs = $104.9592

TCK.b $43.35 $61.76 230.6805 $14246.827
divs =

CM $74.26 $77.88 134.6619 $10487.468
divs = $117.1558

CNQ $36.77 $44.15 271.9608 $12007.069
divs = $20.3970

SAP $35.05 $40.79 285.3067 $11637.66
divs = $45.6490

ABX $47.94 $47.51 208.5940 $9910.3009
divs = $24.7705

CPG $38.21 $ 261.7115 $11415.855
divs = $180.5809

sub total = $111,758.85

total (counts divs) = $112,600.95

divs = $842.1079 these are done every 3 months, TCK.b will be figured in at the end. small div.

only one stock counting the div is a (small ) loss ABX the rest are all positve.

thanks
selkirk

 

[selkirk]

Option 10 Portfolio

February 7, 2011 (Started October 1, 2010)

BCE, FTS, TRP, BMO, CM, ABX, options in Jan expired worthless so will sell new ones.

BCE 3 calls May 38 calls (3X.30 ) = $90

bmo 1 call April 62 call (1 X .55) =$55

FTS 3 calls April 36 call (3X.60) = $180

TRP 2 calls July 40 calls 2X.45 = $90

TCK.b may 52 call 2 contracts = +40

CM 1 call April 82 1X.55= $55

CNQ 2 callls may 42 call 2X.40 = $80

SAP jan 38 sold at $38. currently at 40.79

ABX 2 calls April 52 2X.80 = $160

CPG 2 calls july 42 2X1.19 = $238 (bought back rolled out net credit 238.



trade costs 24 X 10 = $240

$988 made from options in this update.
sub total $2236 money from options

total = $1996 net from options

SAP sold at $38 so money goes to cash, according to the rules cannot reinvest, though that would be a good idea.

$10841.165

total $110,962.35
divs $842.1079
total from options $1996

TOTAL = 113800.45

though the option 10 has more money for now, the upside is limited, and SAP is now sold and the famous cheese stock is now at $40 and going up.

the resources are doing well. for now it seems the buy and hold is doing better in this bullish environment, though would not cry over 13-15% for option 10 portfolio.

thanks
selkirk

 

[DOGS THAT BARK]

Big 10 Portfolio (October 1, 2010- Feb 7,2011)
price bought current price shares value divs

1. BCE $33.01 $36.45 302.9385 $11042.108
divs = $138.5943

BMO $59.12 $58.90 169.1474 $9962.7818
divs = $118.403

FTS $31.66 $35.07 315.8559 $11077.066
divs = $91.5982

TRP $38.11 $38.00 262.3983 $9971.1354
divs = $104.9592

TCK.b $43.35 $61.76 230.6805 $14246.827
divs =

CM $74.26 $77.88 134.6619 $10487.468
divs = $117.1558

CNQ $36.77 $44.15 271.9608 $12007.069
divs = $20.3970

SAP $35.05 $40.79 285.3067 $11637.66
divs = $45.6490

ABX $47.94 $47.51 208.5940 $9910.3009
divs = $24.7705

CPG $38.21 $ 261.7115 $11415.855
divs = $180.5809

sub total = $111,758.85

total (counts divs) = $112,600.95

divs = $842.1079 these are done every 3 months, TCK.b will be figured in at the end. small div.

only one stock counting the div is a (small ) loss ABX the rest are all positve.

thanks
selkirk

While your option 10 is over my head--I certainly love this portfolio. Will post my div portfolio in near future outside of this thread and have you critique it.

 

[selkirk]

DTB the option 10 portfolio is not that complicated...welll..., but did not explain.

TRP 2 calls July 40 calls 2X.45 = $90

lets break this down.

1 call = 1 contract= 100 shares
so 2 calls just means 200 shares

July 40 : this just means they are excercised or would sell if TRP hit $40 cdn. by the third Friday of July.

All options are the third Friday of the month, in this case July.

.45 is just the price you get per share

so 2 C (contracts) (200) at .45 = $90

basically in english you are giving away all upside action past 40 until July, for $90.

looking forward to the div portfolio,

covered calls are better in a flat to sideways market.


thanks
selkirk

 

[selkirk]

Well the covered call option portfolio is finally doing better though than the BIG 10 Portfolio, the market pullback has helped the option portfolio in relation to the buy and hold portfolio.

will update divs, later on in the year.

thanks
selkirk



Big 10 Portfolio (October 1, 2010- June 9,2011) Divs last calculated February 7, 2011.
price bought current price shares value divs

1. BCE $33.01 $38.38 302.9385 $11626.779
divs = $138.5943

BMO $59.12 $60.23 169.1474 $10187.747
divs = $118.403

FTS $31.66 $32.16 315.8559 $10157.925
divs = $91.5982

TRP $38.11 $42.02 262.3983 $11025.976
divs = $104.9592

TCK.b $43.35 $47.50 230.6805 $10957.323
divs =

CM $74.26 $77.14 134.6619 $10387.818
divs = $117.1558

CNQ $36.77 $40.45 271.9608 $11000.814
divs = $20.3970

SAP $35.05 $46.09 285.3067 $13149.785
divs = $45.6490

ABX $47.94 $43.25 208.5940 $9021.6905
divs = $24.7705

CPG $38.21 $45.29 261.71159 $11852.917
divs = $180.5809

sub total = $109368.77

total (counts divs) = $110210.87 (February 7, 2011)

divs = $842.1079 these are done every 3 months, TCK.b will be figured in at the end. small div.

only one stock counting the div is a (small ) loss ABX the rest are all positve.

 

[selkirk]

Option 10 Portfolio

February 7, 2011 (Started October 1, 2010)

BCE 3 calls May 38 calls expired worthless
bmo April $62 Call expired worthless
FTS April $36 Call expired worthless
TRP 2 calls July 40 calls 2X.45 = $90
TCK.b may 52 2 calls expired worthless
CM 1 call April 82 expired worthless
CNQ 2 callls may 42 call expired worthless
SAP jan 38 sold at $38. currently at 40.79 SOLD at $38 =$10841.654
ABX 2 calls April 52 expired worthless
CPG 2 calls july 42 2X1.19 = $238 (bought back rolled out net credit 238.)

BCE 3 calls November $40 = $138 (.46X300)
BMO 1 call October $64= $63 (.63X100)
FTS 3 calls October $34 = $150 (.50X300)
TCK.b 2 calls November $54 = $476 (200X2.38)
CM 1 calls October $82 = $101 (1.01 X 100)
CNQ 2 calls November $48 = $154 (.77X200)
ABX 2 Calls October $48 = $240 (1.20X200)




trade costs 31 X 10 = $310

$1322 made from options in this update.
sub total $3558 money from options

total = $3248 net from options

SAP sold at $38 so money goes to cash, according to the rules cannot reinvest, though that would be a good idea.

$107060.64

total $107060.64
divs $842.1079
total from options $3248

TOTAL = 111150.74
divs last updated february 7, 2011 for both Portfolios.

 

[selkirk]

Below is the Big 10 Portfolio and the Option ten portfolio, started October 1, 2010, and will end at the end of the year, or in October.

Big 10 is $108,235.72 counting divs, so up 8.23%.

The option 10 portfolio is $111,157.08, is up 11.15%.

I should say though the market has been very volatile, these portfoliios have not fluctuated much in value. dividends, and options are not bad to have in a flat volatile markets.

thanks
selkirk



Big 10 Portfolio (October 1, 2010- Divs last calculated June 30, 2011.
price bought current price shares value divs

Update September 8, 2011

1. BCE $33.01 $38.80 302.9385 $11754.013
divs = $295.364

BMO $59.12 $ 169.1474 $10086.259
divs = $236.806

FTS $31.66 $32.72 315.8559 $10334.805
divs = $183.196

TRP $38.11 $42.80 262.3983 $11230.647
divs = $215.16648

TCK.b $43.35 $42.55 230.6805 $9815.4552
divs =

CM $74.26 $76.27 134.6619 $10270.663
divs = $150.821

CNQ $36.77 $35.72 271.9608 $9714.4397
divs = $44.87

SAP $35.05 $38.02 285.3067 $10847.36
divs = $99.8572

ABX $47.94 $54.61 208.5940 $11391.318
divs = $49.3845

CPG $38.21 $42.62 261.71159 $11154.147
divs = $361.161

sub total = $106599.10

total (counts divs) = $108235.72 (September 8, 2011)

divs = $1636.6261 June 30. these are done every 3 months, TCK.b will be figured in at the end. small div.




Option 10 Portfolio

February 7, 2011 (Started October 1, 2010)

SAP jan 38 sold at $38. currently at 40.79 SOLD at $38 =$10841.654

TRP 2 calls October $44 = $70 (.35X200)
CPG 2 calls October $44 = $100 (.50 X 200)

BCE 3 calls November $40 = $138 (.46X300)
BMO 1 call October $64= $63 (.63X100)
FTS 3 calls October $34 = $150 (.50X300)
TCK.b 2 calls November $54 = $476 (200X2.38)
CM 1 calls October $82 = $101 (1.01 X 100)
CNQ 2 calls November $48 = $154 (.77X200)
ABX 2 Calls October $48 = $240 (1.20X200)




trade costs 33 X 10 = $330

$170 made from options in this update.
sub total $3728 money from options

total = $3398 net from options

SAP sold at $38 so money goes to cash, according to the rules cannot reinvest, though that would be a good idea.

$106593.39

total $106593.39
divs $1586.697
total from options $3398

TOTAL = 1111578.08
divs last updated June 30, 2011 for both Portfolios.