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Tourmaline Oil Corp (Alberta) T.TOU

Alternate Symbol(s):  TRMLF

Tourmaline Oil Corp. is a Canada-based crude oil and natural gas exploration and production company. The Company is focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin. It operates in three basins, which include the Alberta Deep Basin, NEBC Montney Gas/Condensate and Peace River Triassic Oil. The Company has ownership interests in 16 natural gas plants in the Alberta Deep Basin. It owns and operates five natural gas processing facilities with an aggregate capacity of approximately 325 million cubic feet per day (MMcf/d) with related gas gathering systems and NGL handling infrastructure at NEBC Montney Gas basin. The Company owns and operates two oil batteries at the Peace River Triassic Oil basin, which handles approximately 48,000 barrels per day of fluids and the associated natural gas is delivered to a third party for processing.


TSX:TOU - Post by User

Comment by CHECKMATE77on Nov 08, 2022 1:25pm
131 Views
Post# 35082728

RE:RE:RE:RE:RE:Smart investing

RE:RE:RE:RE:RE:Smart investing

Covered calls are in fact not speculating but a conservative way of increasing one's income. Noth8ng goes to zero, you are selling the right to buy your shares at a future time at a specific price. The buyer goes to zero if the option is not excercised .
example
today
tou buy at 79.33
sell nov 18 call at 81.75 for 1.25
 

so, nov 18 if share price is 81.75 or above you are selling your 79.33 shares at 81.75 , and keep the 1.25 as a premium. Net is selling at 83.00
if shares are below 81.75 you keep the 1.25 premium

Also as the time value decreases as we reach nov 18 the premium goes down and you can buy back the option and close it.And write another further out.
example
if by nov 17 the shares are 80.50 the call option you sold for 1.25 would be worth maybe .25 , then you could buy back and close position, net 1.00 and write another one out the next week.

I have been doing the above for about 6/12 now and have been called once. Kept all the premiums .I avoid call dates near earning announcements, as if really good or the announcements of special dividends pop the price.

I own 1000 share of tou so the premiums add up.
 

TOURMALINE OIL CORP
1,000
 
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