$BAC $BNS $H Option Assignments and Expiry via BMO InvestorLine. (March 18, 2016)

March 18, 2016 was relatively exciting as it was option expiry day and I had written a few Puts and a Call. As you can see below. Ouch!!! However, this gave me an opportunity to see how BMO InvestorLine presents these transactions.

An underlying goal that I have been developing has been to hold options for longer and preferably to the expiry date. This is in hopes of reducing paperwork for my small transactions and just so I don't need to look at them as much. As with all Put options that I write the target stocks are companies that I actually DO want to own. The problem is as my portfolio evolves and risk levels change I feel my positions need to be cut at times.

It definitely hurt to see my BAC position get wrecked, but also doom on me for holding tight. I was saddened to see the reduced profits from BNS, but I grabbed a small profit and reduced my overall position size. $109.80+$47.34= $157.14 ($1.5714)/ $56.09 average cost = 2.80% profit. It will hurt more when my 4 Calls @ $56 potentially get assigned in April, but at least it is after ex-dividend. Assignment commissions are very high for BMO IL; if I added to the April Calls it would have spread out the pain.

One last thing is to figure out how to work the taxes and record keeping on the assignments as I always thought the premiums would be accounted for with the purchase and sale price. I will need to research further. Also, no confirmations are sent for Assignments; I'll need to remember it is recorded on my transactions spreadsheet.


1) Bank of America: 3 x PUT BAC 2016MAR18 18.00

- Wrote this last year thinking BAC would stay around the $17 level and potentially run for $18.

- BAC proceeded to collapse; at one point the shares hit $10.99.

- Put option loss at that time was over $1,400.

- Wrote an additional Put at $4.40 to average down the eventual buying price.

- Assignment Commission: $51.30

- Closing Price at Expiry: $13.79


2) Bank of Nova Scotia: 1 x CALL BNS 2016MAR18 57.00

- As part of hedge-lite I wrote three Covered Calls for BNS. The market turned and the value of the Puts increased significantly as they went "In The Money.

- As part of building inventory for writing Covered Calls I doubled my 500 share position of BNS to 1,000. Sold 100 to "slightly" manage risk and reduce margin debt.

- Stupidly, wrote another Put @ $57 for March instead of writing an additional April Put.

- Option position -514.75%. Missed out on approximately $565.20 additional profits.

- Assignment Commission: $43.00

- Closing Price at Expiry: $63.57 ($6.57 difference from the strike)



3) Hydro One: 2 x PUT H 2016MAR18 22.00

- Small position to dip my toe back into H.

- It's still got a major owner of the Ontario Government. It "can't" go down... right?

- Expiry meant the entire premium is mine!

- Calculated as a 703.2129% gain! $87.55. lol.

- No Commission for expiry.

- Closing Price at Expiry: $23.48