beach, could you fill me in on the details of these options.....like what did you pay, exactly when is the date they expire, what did you pay for commission, who did you buy them through, etc......?
I've been holding banks long forever, it seems, but my recent aquisition of a computer and the resulting feeling of being in touch with developments is leading me to consider writing covered calls on them.....and right now, I'd be interested in a put on RY, considering the relative P/E and all.......
Here's something more or less verbatim that I was just babbling about to a friend, somebody jump on it if they think it's wrong; "In any reasonably long period, like 5 or 10 years, in the last 40 or 50 years, it has been possible to borrow money from a Canadian bank at standard mortgage rates, use the money to buy shares in that bank, and make money in the process, after taking into account all expenses, fees, dividends, etc.... And if you pick the right timing, it's possible to make a lot of money doing this......If you pick the poorest timing, the worst case possible is that you have to wait a long time to get to positive results, and make the mortgage payments in the meantime."
It just strikes me that these returns could be increased by writing covered calls as well...... |
