Canadian National Railway Co T.CNR

RE:RE:RE:RE:RE:RE:Seems like a fun place to play with Options in the TSX

[rad10]

JayBanks wrote:

I've gotten used to living with leverage as dividends from other stocks more than pay off my interest bill per month.

While laid off over the early new year I learned and gained myself access to options and am learning what systems of use work for me.

I've got a long CNR position of 100 shares purchanced the boring way in 2 purchases, but I'd like to hold 3-500 at some point. Playing the options game, (I sold a 2nd weekly option that expires on July 28th for anouther $160ish payout that = $152 ish share purchase price) allows me to do it much earlier with less overhead and at potentially better prices.

Also I only put Call options out for what would be way over valued prices ($180-200) with the intent they never get called away... and I've put out 3-4 different Call options out there over the past while, only one got accepted because I'm not getting that risky on loosing the shares.

This is a pretty predictable company, you know it's gonna raise the dividend 10%+ regularly and jumps and dips in a pretty stable range where you can buy when it's low in the year (like current area) and potentially sell a bit when it gets ahead of itself and then repurchase your previous position plus a few more shares when it lowers again. I'm just using the bank and a more interesting way to do it.

Also rarely does this method get discussed by peeps so I'm putting it out there for those interested or that do play a similar game.

 

strong work.  Glad you have a system that works.