since these have worked out close to how I wanted they turned out, however probably still mistakes, one is still open.
1. SLF
back in May saw that SLF was going up almost everyday, so decided to buy some at $24.80-$24.90 cdn. and then sold a $25 covered call July for $2.40 shortly after.
I thought it was a great return would get a return of around 9.6% in just under 3 months if I loss the stock.
also got the .36 quartely div.
however one of the drawbacks of a covered call is that you cap your upside. the stock traded up to $30. so would have got $5 per share if I just held.
Currently SLF 37.90cdn. it went up sharply yesterday.
note: when it was at 29US sold a 22.50 put nov. for .60 and own 10% of the positon buy and hold..wish it was 90% more.
PWF Power Corp owns Investors Group (mutual funds), London Life insurance, Great West Life.
you can buy them seperate or buy Power Corp financial which controls them all, also Power Corp controls Power Financial and is the mother corp...do not buy this as they own assets in Europe and media, not sure I understand.
PWF is a good company to own, they like to raise their div. and in nomral years, increases earnings and revenue.
bought it recently, last week at 27.30 cdn. and wrote a 27 covered call for oct. got $2. oct.
that means you get a profit of 1.70 plus div, just for holding it for 3 months and a couple of weeks.
still the stock in the past week has shot up to 29.86 cdn. thought it could hit 30 cdn., in a 3-6 months.
So that is the main downside in Covered calls, somethimes you give up the upside.
would rate SLF (trade in cdn. and the US) and PWF power financial as holds now, they are two very good companies, and will be higher in the future.
just that in the short term these stocks have had some very good runs, and at sometime would expect some profits taken......of couse said the same thing in late May/June.
thanks
selkirk
1. SLF
back in May saw that SLF was going up almost everyday, so decided to buy some at $24.80-$24.90 cdn. and then sold a $25 covered call July for $2.40 shortly after.
I thought it was a great return would get a return of around 9.6% in just under 3 months if I loss the stock.
also got the .36 quartely div.
however one of the drawbacks of a covered call is that you cap your upside. the stock traded up to $30. so would have got $5 per share if I just held.
Currently SLF 37.90cdn. it went up sharply yesterday.
note: when it was at 29US sold a 22.50 put nov. for .60 and own 10% of the positon buy and hold..wish it was 90% more.
PWF Power Corp owns Investors Group (mutual funds), London Life insurance, Great West Life.
you can buy them seperate or buy Power Corp financial which controls them all, also Power Corp controls Power Financial and is the mother corp...do not buy this as they own assets in Europe and media, not sure I understand.
PWF is a good company to own, they like to raise their div. and in nomral years, increases earnings and revenue.
bought it recently, last week at 27.30 cdn. and wrote a 27 covered call for oct. got $2. oct.
that means you get a profit of 1.70 plus div, just for holding it for 3 months and a couple of weeks.
still the stock in the past week has shot up to 29.86 cdn. thought it could hit 30 cdn., in a 3-6 months.
So that is the main downside in Covered calls, somethimes you give up the upside.
would rate SLF (trade in cdn. and the US) and PWF power financial as holds now, they are two very good companies, and will be higher in the future.
just that in the short term these stocks have had some very good runs, and at sometime would expect some profits taken......of couse said the same thing in late May/June.
thanks
selkirk
