Closing more long calls and the going forward TFSA plan

I closed another long call today for somewhere near a 110% gain. I took it out based on an early morning surge in the underlying price that seemed to peak. I had decided to take any 100% gains this week and close others on strength if they were profitable as the week progressed. So this is a little bonus...particularly after Friday's expiration as four positions closed for 100% losses.

Overall, I am 22 winners out of 36 losers which is not a bad win rate, 61%, and I am still profitable. It just is not good enough to continue paying for a service for that kind of rate. Particularly as I will have more 100% losers come January expiration I expect. My overall rate of return is between 12 and 13% and that is for a period of about 3 months.

The trouble with the win rate is that a loser is likely to be a 100% loser which means a winner must always be a 100% gainer, and they are not all that at all.

I will be removing any extra cash from my TFSA this week as it will free up TFSA contribution room for next year. If I wait until January it will not. This allows me to add to my spread trading account which I would rather be working for a far more secure return without relying on any services to provide entry and exit guidance.

The grand plan is to run a sector rotation style trade setup out of the TFSA using ETFs for long and inverse ETFs for short plays against the respective sectors. While I am saving some cash for this I will likely run a live paper trading model to see how it works in "close to real life". I will look at switching back to Canadian ETFs in order to lower my trading costs in the account, even though I know I cannot set stop loss orders... I may find that access to the same information is not readily available for what I am looking for though and the TSX makes poor proxy for NYSE indices and securities.

Jeff.