BMO US Put Write Hedged to CAD | StockChase
6
BMO US Put Write Hedged to CAD (ZPH-T)

Last Price Recorded: $19.6400 on 2017-12-13

ON STOCKCHASE SINCE Mar 2017

E.T.F.'s
6
BMO US Put Write Hedged to CAD (ZPH-T)

Last Price Recorded: $19.6400 on 2017-12-13

ON STOCKCHASE SINCE Mar 2017

E.T.F.'s

BMO US Put Write Hedged to CAD


Signal Opinion Expert
HOLD

It contains some of the best quality companies in the US.  BMO write puts 15-20% below the market price.  They generate additional income from the puts.  Every month if the markets don’t fall to those prices, then they harvest the income on those puts.  BMO does not want to own the stocks so if necessary they buy the option and re-write the put.  He expects 6-7% from it.  If it is not working out the way you hoped, pricewise, then you have to ask if you can take the asset and put it somewhere else.  This ETF won’t grow in price.

E.T.F.'s

It contains some of the best quality companies in the US.  BMO write puts 15-20% below the market price.  They generate additional income from the puts.  Every month if the markets don’t fall to those prices, then they harvest the income on those puts.  BMO does not want to own the stocks so if necessary they buy the option and re-write the put.  He expects 6-7% from it.  If it is not working out the way you hoped, pricewise, then you have to ask if you can take the asset and put it somewhere else.  This ETF won’t grow in price.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$19.650
Owned Owned
Unknown

COMMENT

ZWE-T vs. ZPH-T.  ZPH-T is the put write strategy.  If we have an acute sell off, both will lose a little money.  If you are branching outside of Canada, there is no dividend tax credit, but put write gives additional income.  He recommends having a bit of both in order to diversify.  Europe is a bit more attractive over the next couple of years.

E.T.F.'s

ZWE-T vs. ZPH-T.  ZPH-T is the put write strategy.  If we have an acute sell off, both will lose a little money.  If you are branching outside of Canada, there is no dividend tax credit, but put write gives additional income.  He recommends having a bit of both in order to diversify.  Europe is a bit more attractive over the next couple of years.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$19.700
Owned Owned
Unknown

BUY

ZPW-T vs. ZPH-T.  ZPH-T is hedged against currency risk.  The cost of hedging is the differential in the cost of writing the forward contract.  He is fully hedged on all portfolios.  The CAD$ may go back to $.80.  If markets sell off and contracts come into the money they may get taken out.   A 20% down for the market will cause many of their stocks to come down into the money.

E.T.F.'s

ZPW-T vs. ZPH-T.  ZPH-T is hedged against currency risk.  The cost of hedging is the differential in the cost of writing the forward contract.  He is fully hedged on all portfolios.  The CAD$ may go back to $.80.  If markets sell off and contracts come into the money they may get taken out.   A 20% down for the market will cause many of their stocks to come down into the money.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$19.900
Owned Owned
Unknown

COMMENT

ZPW-T vs. ZPH-T. You have 100% equity exposure even though they are miss-classified on many trading platforms that look at what is in them.  They are writing options.  The fixed income holing is just there for margin purposes.  It is a treasury bill so there is no risk to it.  These are not fixed income. 

E.T.F.'s

ZPW-T vs. ZPH-T. You have 100% equity exposure even though they are miss-classified on many trading platforms that look at what is in them.  They are writing options.  The fixed income holing is just there for margin purposes.  It is a treasury bill so there is no risk to it.  These are not fixed income. 

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$20.060
Owned Owned
Unknown

BUY

Low Risk ETF with a Monthly Dividend.  It yields 6-7% a year.  It hedges the currency.  There is not a lot of price movement up and down.  It is not risk free, however.  It will go down half as fast as the market in a rapidly declining market.

E.T.F.'s

Low Risk ETF with a Monthly Dividend.  It yields 6-7% a year.  It hedges the currency.  There is not a lot of price movement up and down.  It is not risk free, however.  It will go down half as fast as the market in a rapidly declining market.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$19.990
Owned Owned
Unknown

COMMENT

ZPH-T or ZPW-T? He likes them both. When he thinks the CDN$ is going to get weaker, $.02, $.03, $.04, he wants ZPW. When he thinks the Cdn$ may get stronger, then he wants this one and wants to hedge the currency risk.

E.T.F.'s

ZPH-T or ZPW-T? He likes them both. When he thinks the CDN$ is going to get weaker, $.02, $.03, $.04, he wants ZPW. When he thinks the Cdn$ may get stronger, then he wants this one and wants to hedge the currency risk.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Manageme...

PricePrice
$19.980
Owned Owned
Unknown

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