Gilberts portfolio

[selkirk]

going to start another portfolio similar to Mr. GIC, hope it does as well but who knows.

instead of 100,000 will be 10,000, the goal is 10% a year, also it will be based in Canada.

November 19, 2009.

sell 2 puts BNS 46 dec .44 .48
.44X200= $88 net credit.

buy 100 cnq 72.40 cdn. $7240

sell 1 covered call CNQ Dec 72 3.10 - 3.25
$325 net credit.

going to take discount brokerage rates, for keeping it simple will count every trade $10, in reality the equity orders can be done cheaper than most of the option orders.

though around 10 if not cheaper as the commissions fall a little every year.

off to Edmonton to see some friends who work in the oil fields, and yes CNQ. leaving thursday and coming back home on monday...tuesday.

only a cdn. would travel to a colder climate while on vacation... :shrug:
should be good time, have known this group of friends for over 20 years.

thanks
selkirk

 

[selkirk]

the CNQ option will be counted for 310, as will always take the worse bid/ask, available. could probably get better.

also these are closing prices.

thanks
selkirk

 

[Kid Bro Sweets]

nice be interesting to track, safe trip kirk

 

[selkirk]

KBS had a great trip, the first day the plane did not work so missed the 6am flight out, then there was fog, anyways flew south, but we got there 3am eastern, almost 24 hours after we checked in, for a four hour flight.

we met some great people during the trip...Edmonton a great city, $$$ beer.

did this trade late yesterday.
buy 400 ap.un $17.45.

could have got it for below 17.40 it I waited ten minutes.

will trade this so will buy 17.45 and sell at 17.75.
the stop is 16.75.

thanks
selkirk

 

[selkirk]

ap.un traded from 17.35 to 17.74 on wednesday. so bought at 17.45.

yesterday it hit and sold at 17.75 cdn. (the high), it was lucky it hit the high as it traded in a wide range, also went ex div on thursday. got the .11 cent dividend for anyone who bought in on wed.

will wait until next week to buy back in, as the reit just paid its div, and will wait to see how CNQ, and BNS turn out. also the reits in Canada will follow the banks which have been flat to trending down. despite good earings from BMO and expected good earnings from the other banks next week, already priced into the stocks though.

the next trade for this portfolio will probably be another option on CNQ, maybe BNS, but that will be next week.

the market as I write this looks like it will drop, -2% futures, so CNQ, and BNS are probably not going to have a good day. resources and financials.
will wait

next trades (looking at) options on CNQ, BNS, and AP.un in about two weeks closer to monthly div.


thanks
selkirk

 

[selkirk]

will do a recap of the portfolio but here is the latest trade

TRP 34 P Jan .50-.55
2 contracts = $100

- the comm

basically TRP is trading at 34.50 cdn. so willing to buy it at 34 in Jan. will get 100-commis.
add to cash.

TRP is a defensive good pipeline / power play. yields over 4%. would rather do this around 32 but get nothing for the option.

thanks
selkirk

 

[selkirk]

this is a short trade. go to sell two puts on ABX $42P DEC .45-.55 last trade .53

42.50cdn.

so basically willing to buy 200 shares of Barrick gold at $42 cdn. the option expires this Friday. not a bad risk for a short period of time.

if it falls below and get 200 put to me, will sell 100 and keep the other 100.

200X .45 (.45-.55) = $90 - commissions.

cash will be added to the account.

will do an update tomorrow, hopefully on the account. wish I kept ap.un as it went on to hit 18.70 cdn. so much for short term trading.

thanks
selkirk

 

[selkirk]

well gold dropped by more than $30 dollars this week, and ABX fell to 41.50, so got 200 put to me, on Monday traded up briefly but like I said previously will sell 100 at 41.30 cnd. price at time of post.

and sell a $42 Jan $1.35 this is probably a mistake to hold any gold as it is coming off and testing resistance.

in the next few weeks will update com. ect.

thanks
selkirk

 

[selkirk]

A review Update

A review Update

since the portfolio started on November 17, 2009 here is an update of the trades

1. 2 46 dec Puts December they expired worthless, as BNS is trading above 49cdn. was 48 and change at time of put.
$88 credit to the account

2. bought 100 CNQ at 72.40cdn. and at the same time sold $72 dec call.

cnq -40 stock
the stock was $73 cdn. so loss the stock for $72 but got $3.25 for the call option.

credit $325

3. bought 400 shares of ap.un at $17.45 and sold 17.75. also got the monthly div .11 per share.

$44 div
$120 credit.
should point out AP.un is now above 19 cdn. and hit over 19.90 so should have just kept it instead of trying to be a brilliant short term trader...more like idiot trade.

4. TRP Jan 34p 2 contracts net credit $100.
with trp trading at close to 36cdn. this is looking very good. would have to buy if it falls below 34.

5. 2 p abx dec 42 credit $100
abx fell to 41.50 the friday opton was due, so got 200 abx put to me.

sold 100 on following monday for 41.30 -70 debit
kept 100 and sold 42 jan abx call for +135 credit.

ABX is trading 41.70 cdn.

+88
-40
+325
+44
+120
+100
+100
-70
+135
=$802
-70commissions
=732

100 ABX $41.70
1 ABX call jan 42 (1.35)
2 trp Jan 34p

total 6532 cash
total 6532 + 4170 =10,702

note : the trp option and abx would count against this total, however the abx is a 42 covered call so the upside is limited, and the trp jan 34p will probably expire worthless.

all figures in cdn. $, on Toronto and options montreal.

new trades

CNQ 1 $70 put feb .95 1.10
credit $95

BNS 2 p April $44 .83 .93
.83 X200 = $166 credit

so on the hook to buy bns now for 44 in april it trades as 49.72 and yields just under 4%. today bought into a china bank 13.2%, XACB, now owns 14.8% and will buy up to 20%.

they have a strong retail bank in Canada, have a large presence in South Amercia and now expanding slowly in Asia... believe it will be flat to up 10%, so willing to write insurance at 44cdn.

CNQ is at 75.99 since I owned it before around 72 willing to buy it around 70 in feb.

will roll out and up the ABX if it is around 44 and below 42-44, and will write a trp put when the other one expries, for the summer.

everyone have a happy and safe new year...Bring ON 2010... will have the new years predictions on the Jan 1, 2, 3....have to see how I recover from new years eve...lol.

thanks
selkirk

 

[selkirk]

here are some more trades,

the ABX jan 42 calls expired worthless so will write sell

ABX april 42 cdn. 1.03/1.10 =$103 credit

cnq feb 74 call (uncovered) .55/.70 = $55 credit

BNS apr 50 call (.24/.31) = $48 credit

the BNS and CNQ calls are hedges against the puts which are close to being in the money, CNQ at this time is in the money.

the TRP $34 put Jan expired worthless, will sell another one will wait to see how these do first.

thanks
selkirk

 

[selkirk]

update

update

Feb 21, 2010 Portfolio began November 18, 2009

ABX (Barrick Gold ) 100 shares $41 =$4100

-1 ABX $42 April covered call

-1 BNS $50 call

- 2 BNS 44P April

Cash $6,999
cash $6,999+4100= $11,099

started with $10,000

CNQ $74 call feb and the $70Put feb options both expired worthless. CNQ is now at 72.52cdn.
so the trades worked out.

the cash balance has been updated from the last five trades (options).

except trade comm. -$50 will be taken later.


new trade

- 2 Put OTC (open Text) Aprl $46 (.70/.90) X2 contracts 200= $140 credit

this amount will be added to cash, OTC is a cdn. tech company, that had great earnings and had a brief run from $44cdn. to $50..now at $49.22cdn.

company growing at 15X this years earnings, and growing at more than 15-20%. with cash on hand.

downside risk is $45 cdn. so april 46 put, is not bad.

as for the BNS trade the stock is just below $48cdn. for the options sold want the stock to stay in the 44-50 range until April.

more trades in late March/April.... Gilbert has to open up his camp.

by the way ABX earnings beat, and they are spinning off their african operations to raise cash and have it valued better...

thanks
selkirk

 

[selkirk]

some trades for Gilbert

Aug 70 P 1.37/1.49 so will sell 200X1.37

basically agreeing to buy cnq for $70cdn. a share up unitl August, 200 shares for $1.37 each.

will have to buy 200 shares of bns or cover the position. on uncovered calls, 50 april bns is trading at 50.85.

thanks
selkirk

 

[selkirk]

will also sell 2 put bns 46 July .53/.59 so 200 X .53

I will probably roll out the two uncovered calls if I have to, April, this is the first step...

wish to buy CUF.un which yields over 7%, however will wait to see how BNS, and OTC play out.

thanks
selkirk

 

[selkirk]

buying back the BNS April 50 calls (2) 1.29/1.35, will pay 1.35 (always pay the highest price, for record purposes.)

sell 52 call July 1.15/1.22 (2) will sell for 1.15.

this was a dumb trade will soon just add 200 bns and cover the position.

sell 1 June $68 rim p 1.50-1.65 (so will pick up 150)
Rim is cheap, and maybe dangerous, still will sell a 68 put, that allows someone to put the stock to me for $68..

next update late April after all of the options expire OTC this April.
will update portfolio then...along with trading costs.

thanks
selkirk

 

[selkirk]

Gilberts Portfolio May 12, 2010 update (began November 18,2009)

started with $10,000

- 2 BNS July 52 calls

- 2 BNS July 46 puts

- 2 CNQ AUG 70P

- 1 RIM June 68P

cash = $15734

OTC (open text) April expired worthless, the rollout and rollup on BNS July calls cost me $30.

the cash reflects selling abx at 42 in April and the money from options you see above. Also paid for trade costs of $65. which bring the trade costs up to date.

note: will buy BNS soon so the calls are covered. do not want to be short BNS especially when it is trading around this price.

thanks
selkirk

 

[selkirk]

We have a June 68 RIM P which is in the money rim is at 63cdn.

so in June have to buy it for 68 and since it is now at 63, well this is a hedge, or just stupid.

2 calls June 68
.50X200 (2 contracts)= $100

now if Rim increases then the amount lose on the Puts on Rim go down. if rim is put to me, I get the premium from the put, and now $100 from the uncovered calls. get added to cash.


thanks
selkirk

 

[selkirk]

will put an order to buy cuf.un at 18.35 starting tomorrow. good eastern reit that yields 8% paid monthly.

thanks
selkirk

 

[DOGS THAT BARK]

will put an order to buy cuf.un at 18.35 starting tomorrow. good eastern reit that yields 8% paid monthly.

thanks
selkirk

Kirk --are any of these toronto stocks available to U.S. residents under diff symbol?

 

[selkirk]

DTB this one is not listed anywhere besides the TSX. none of the reits that I follow are listed in the US. though that will probably change, Riocan is started to invest about 30% in beaten down US retail, where they think there are bargains. time will tell if they are correct.

so riocan by next year may be dual listed, woud make sense if 40% of your holdings in time are in that country.l

will let you know when one is listed. note prefer cuf.un to rei.un, has not reached this price actually went up to 19.

thanks
selkirk

 

[selkirk]

well cuf.un opened at 18.85 today high 18.98 and hit a low of 18.35.

closed 18.47
in my post stated was putting an order in at 18.35 but did not say how many sorry, for the mistake.

300 at 18.35

will sell the 300 at 18.80. if it does not reach this price will just sit and collect the .12 monthly div.

rim is falling, and will probably have to buy back the put at a loss, was going to roll down and out, but will not risk it on a stock that seems to be in free fall.

will update later this week on rim.

thanks
selkirk