Strategy #2: Covered Calls

[Peter518]

JDH, Congratulations on your success in the covered call writing strategy.   Your timing is perfect.  Great job!

I prefer to writing covered calls too.

Looking forwards to reading your great work next Saturday.

Have a nice weekend.

[Peter518]

Of course the above analysis ignores commissions. Using K.TO - Kinross Gold Corp. as an example, the sale of 5 contracts (representing 500 shares) cost a commission of $16.24, and the subsequent sale of the shares when called cost another $43. I use TD Waterhouse; different brokers may have cheaper rates.

DH, Congratulations on your success in the covered call writing strategy.  Good job!

I also use TD Waterhouse.  Normally they charge me $29 flat up to 1,000 shares for Stock Price over $2.

http://www.tdwaterhouse.ca/trading/asff.jsp

If you are an active trader, you only pays $9.99 per trade.

Why don't you use their Electronic Brokerage Services ?

Have a nice weekend.

[JDH]

Thanks for the comment on TD Waterhouse and commissions.  I looked back through my transactions, and you are correct; I pay $9.99 on most stock purchases.  Apparently when a call option matures and the stock is "called", the commission is not discounted, and I pay $43 instead of $9.99.  I'm not sure why that is; if I get a chance next week I may call TD and enquire.