Richard Croft
Member since: Dec '04
President at
R.N. Croft Financial Group Inc.
R.N. Croft Financial Group Inc.
1079 Opinions
Latest Top Picks
(A Top Pick Nov 09/18, Up 19%)synthetic long Apple He bought a call and sold a put. It acted like the underlying stock. He didn't put up any money, and got a 60-cent credit right out of the gate. He closed everything last Friday and got $40.75/share--a huge win. He tamped that down and put up 30% margin. So, that 19% return would triple. He took that off the table though and simply bought Apple which was up 19%. He was being conservative.
(A Top Pick Nov 09/18, Up 7%) This will break out, has serious upside, and he expects a US-China trade deal.
(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.
Synthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
Synthetic long Microsoft Buy January (2021) 145 call at $14.50, sell Jan (2021) 145 put at -$15.40, net $0.90/share. MSFT is a great company shooting on all cylinders. It has a great shot scoring the US government contract for cloud services (Trump doesn't like competitor Amazon/Bezos).
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COMMENT
COMMENT
November 4, 2019
He doesn't see a recession. We had a correction in Q4 last year and a flat market since 2018. We're laying the foundation for a market that will do just fine. The US consumer remains strong, spending money in services (food, entertainment, travel, etc.), and pushing up the real estate market. Manufacturing is a little slow, though the Fed is lowering interest rates. Caveats: Volatility is below 13 now, which worries him, and we don't know who will lead the Democrats. He doesn't like Elizabeth Warren's idea about taxes.
He doesn't see a recession. We had a correction in Q4 last year and a flat market since 2018. We're laying the foundation for a market that will do just fine. The US consumer remains strong, spending money in services (food, entertainment, travel, etc.), and pushing up the real estate market. Manufacturing is a little slow, though the Fed is lowering interest rates. Caveats: Volatility is below 13 now, which worries him, and we don't know who will lead the Democrats. He doesn't like Elizabeth Warren's idea about taxes.
Richard Croft
President, R.N. Croft Financial Group Inc.
COMMENT
COMMENT
November 4, 2019
Did 3 puts on May 10 at 284 and paid $9.61 on May 13. It was at 280 or a loss of $4/share, but the put went up to $11.13. Why did the put not protect the SPY position? Are the puts a good way to protect long positions? Problem is, options have a delta--they don't move dollar-for-dollar with the underlying security . The delta would be around $50 for him, so the option likely moved 50 cents up every dollar that the SPY moved down. So that's not 100% protection. He'd need 6 puts instead of 3.
Did 3 puts on May 10 at 284 and paid $9.61 on May 13. It was at 280 or a loss of $4/share, but the put went up to $11.13. Why did the put not protect the SPY position? Are the puts a good way to protect long positions? Problem is, options have a delta--they don't move dollar-for-dollar with the underlying security . The delta would be around $50 for him, so the option likely moved 50 cents up every dollar that the SPY moved down. So that's not 100% protection. He'd need 6 puts instead of 3.
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
Which bank ETF or banks themselves to buy? Currently, he holds GICs. Buy the bank where you are holding your GIC. It's safe. With a GIC, you're loaning that bank money. Banks are starting to rally now after a weak summer. TD is solid. He also likes CIBC and Royal.
Which bank ETF or banks themselves to buy? Currently, he holds GICs. Buy the bank where you are holding your GIC. It's safe. With a GIC, you're loaning that bank money. Banks are starting to rally now after a weak summer. TD is solid. He also likes CIBC and Royal.
Richard Croft
President, R.N. Croft Financial Group Inc.
DON'T BUY
DON'T BUY
November 4, 2019
food services
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 19%)synthetic long Apple He bought a call and sold a put. It acted like the underlying stock. He didn't put up any money, and got a 60-cent credit right out of the gate. He closed everything last Friday and got $40.75/share--a huge win. He tamped that down and put up 30% margin. So, that 19% return would triple. He took that off the table though and simply bought Apple which was up 19%. He was being conservative.
(A Top Pick Nov 09/18, Up 19%)synthetic long Apple He bought a call and sold a put. It acted like the underlying stock. He didn't put up any money, and got a 60-cent credit right out of the gate. He closed everything last Friday and got $40.75/share--a huge win. He tamped that down and put up 30% margin. So, that 19% return would triple. He took that off the table though and simply bought Apple which was up 19%. He was being conservative.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 7%) This will break out, has serious upside, and he expects a US-China trade deal.
(A Top Pick Nov 09/18, Up 7%) This will break out, has serious upside, and he expects a US-China trade deal.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.
(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.
Transportation
COMMENT
COMMENT
November 4, 2019
food services
BUY
BUY
November 4, 2019
A good portfolio hedge? Yes. With this, you're buying the VIX x 2. TVIX is a short-term vehicle. You hedge because you feel the markets are irrational now, expecting the market to move down which spark the volatility, which gives you double the bang for your back. But keep a very close eye on this as you execute it.
A good portfolio hedge? Yes. With this, you're buying the VIX x 2. TVIX is a short-term vehicle. You hedge because you feel the markets are irrational now, expecting the market to move down which spark the volatility, which gives you double the bang for your back. But keep a very close eye on this as you execute it.
E.T.F.'s
BUY
BUY
November 4, 2019
E.T.F.'s
WEAK BUY
WEAK BUY
November 4, 2019
E.T.F.'s
DON'T BUY
DON'T BUY
November 4, 2019
Energy faces a lot of challenges. If you're contrarian you can buy some of this. He's not a fan of energy. Current energy prices are about right. Also, Aramco is going public, as announced today, which will attract some investment at the expense of Canadian energy stocks. Alberta needs pipelines.
Energy faces a lot of challenges. If you're contrarian you can buy some of this. He's not a fan of energy. Current energy prices are about right. Also, Aramco is going public, as announced today, which will attract some investment at the expense of Canadian energy stocks. Alberta needs pipelines.
E.T.F.'s
BUY
BUY
November 4, 2019
A covered call He likes covered calls and you can do it with BHC. Write them and take the premium here. BHC has been rangebound, but demographics favour health stocks. However, governments will limit pricing of health services.
A covered call He likes covered calls and you can do it with BHC. Write them and take the premium here. BHC has been rangebound, but demographics favour health stocks. However, governments will limit pricing of health services.
Healthcare
BUY
BUY
November 4, 2019
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
Option trade with uncertainty in Canada? Do a covered call or write a put. If you sell a put, you must buy the stock at a certain price, so you can set a price point to enter the position. If a covered call, you're buying the stock, selling a call and capping your upside but reducing your cost base. The premiums on CNQ are in the top 25% of Canadian option premiums. Don't buy options on it now.
Option trade with uncertainty in Canada? Do a covered call or write a put. If you sell a put, you must buy the stock at a certain price, so you can set a price point to enter the position. If a covered call, you're buying the stock, selling a call and capping your upside but reducing your cost base. The premiums on CNQ are in the top 25% of Canadian option premiums. Don't buy options on it now.
oil/gas
DON'T BUY
DON'T BUY
November 4, 2019
He's never liked marijuana stocks. The hype wasn't justified and they got way ahead of themselves. This will be regulated like alcohol which means tight returns.
He's never liked marijuana stocks. The hype wasn't justified and they got way ahead of themselves. This will be regulated like alcohol which means tight returns.
E.T.F.'s
BUY
BUY
November 4, 2019
Initiate a call option for a strike date of April 2020 at a strike price around $340? Likes Shopify. You will pay a lot for the option because the premiums are high, in the top 25%. Shopify has had a good run, though come off recently. Go ahead and do it. It's a speculative move.
Initiate a call option for a strike date of April 2020 at a strike price around $340? Likes Shopify. You will pay a lot for the option because the premiums are high, in the top 25%. Shopify has had a good run, though come off recently. Go ahead and do it. It's a speculative move.
TOP PICK
TOP PICK
November 4, 2019
Synthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
Synthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
specialty stores
TOP PICK
TOP PICK
November 4, 2019
computer software/processing
TOP PICK
TOP PICK
November 4, 2019
Sell put JPM Sell 130 put for cost of -$11.55. If JPM is > $130 by Sept. 2021, the puts expire worthless. If JPM is < $130 by Sept. 2021, then buy JPM at $130 with a -$11.55 premium.
Sell put JPM Sell 130 put for cost of -$11.55. If JPM is > $130 by Sept. 2021, the puts expire worthless. If JPM is < $130 by Sept. 2021, then buy JPM at $130 with a -$11.55 premium.
Financial Services
BUY
BUY
November 4, 2019
An ETF with exposure to US growth in the next 2 years, pays a good dividend and is super-safe? You won't find super-save without risk. CUD invests in US stocks that consistently increase their dividend that pays a yield better than SPR's.
An ETF with exposure to US growth in the next 2 years, pays a good dividend and is super-safe? You won't find super-save without risk. CUD invests in US stocks that consistently increase their dividend that pays a yield better than SPR's.
E.T.F.'s
BUY
BUY
November 4, 2019
Adding preferred shares to bonds and GICS to a portfolio? HPR or ZPR? Great idea and either of those ETFs is fine. CPD is a basket of reset-preferreds is another idea or buy the individual preferreds like BCE or the banks. Preferreds are good to buy now because rates are so low. Preferreds are now yielding 120-200% of what 1o-year bonds are paying.
Adding preferred shares to bonds and GICS to a portfolio? HPR or ZPR? Great idea and either of those ETFs is fine. CPD is a basket of reset-preferreds is another idea or buy the individual preferreds like BCE or the banks. Preferreds are good to buy now because rates are so low. Preferreds are now yielding 120-200% of what 1o-year bonds are paying.
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
What do we pay the highest option fees in online trading with our banks? It's far cheaper in the States. Because most Canadian banks don't want to trade options, because they're risky. Most of the lawsuits that online traders get come from options.
What do we pay the highest option fees in online trading with our banks? It's far cheaper in the States. Because most Canadian banks don't want to trade options, because they're risky. Most of the lawsuits that online traders get come from options.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
November 4, 2019
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
The market is noise. The market today is like February 2018 with a correction in place during a bull market. The US Fed: it's in uncharted territory so they're making up the playbook as they go along. The bull market is now long in the tooth; the yield curve inverts periodically. Both point to a recession. The long bull market is based on easy money, which is actually indicative of inflation. The negative interest rates on the world's debt is actually inflation. No, the weakness in Europe or elsewhere won't trigger a U.S. recession. Only American forces trigger that. The US economy is 70% a service economy, which aren't as volatile as a manufacturing economy, like Germany's who have gone into negative growth. The boomers have money and are spending, so they will keep the U.S. service economy stable.
The market is noise. The market today is like February 2018 with a correction in place during a bull market. The US Fed: it's in uncharted territory so they're making up the playbook as they go along. The bull market is now long in the tooth; the yield curve inverts periodically. Both point to a recession. The long bull market is based on easy money, which is actually indicative of inflation. The negative interest rates on the world's debt is actually inflation. No, the weakness in Europe or elsewhere won't trigger a U.S. recession. Only American forces trigger that. The US economy is 70% a service economy, which aren't as volatile as a manufacturing economy, like Germany's who have gone into negative growth. The boomers have money and are spending, so they will keep the U.S. service economy stable.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
August 21, 2019
Likes it. Interest rates are so low, so collect the fine dividend here. This contains banks and utilities, plus some oil.
Likes it. Interest rates are so low, so collect the fine dividend here. This contains banks and utilities, plus some oil.
E.T.F.'s
BUY
BUY
August 21, 2019
Most BMO covered call ETFs write options against half the positions. It's a yield pick-up plus the dividend. You get covered call options written against European stocks. If you believe the worst is over in Europe (which is debatable), this isn't a bad way to play Europe at all.
Most BMO covered call ETFs write options against half the positions. It's a yield pick-up plus the dividend. You get covered call options written against European stocks. If you believe the worst is over in Europe (which is debatable), this isn't a bad way to play Europe at all.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
He held it for a while then sold options to increase yield. Suddenly, PPL ran up. So, he rolled over the option instead of lose the stock. He wanted to sell leaps, but the 2022 LEAPS are bid 15 cents per $50 call, ask $5.50. What happens to time value? The price is way off. If you sell it, you'll likely keep it until it matures in 2022. He writes options against PPL to deliver cash flows. He likes this strategy. To roll up the strategy, don't sell a long-term LEAP, because you won't get liquidity....On the other hand, he's made the maximum return which you should always aim for. He doesn't think PPL will continue to run sizably. PPL pays a good yield.
He held it for a while then sold options to increase yield. Suddenly, PPL ran up. So, he rolled over the option instead of lose the stock. He wanted to sell leaps, but the 2022 LEAPS are bid 15 cents per $50 call, ask $5.50. What happens to time value? The price is way off. If you sell it, you'll likely keep it until it matures in 2022. He writes options against PPL to deliver cash flows. He likes this strategy. To roll up the strategy, don't sell a long-term LEAP, because you won't get liquidity....On the other hand, he's made the maximum return which you should always aim for. He doesn't think PPL will continue to run sizably. PPL pays a good yield.
pipelines
COMMENT
COMMENT
August 21, 2019
Nothing wrong with this strategy. He can buy it back or sell another option later. Or you can just leave it alone, which is also good. and you at $70, then you get called, you could lose money.
Nothing wrong with this strategy. He can buy it back or sell another option later. Or you can just leave it alone, which is also good. and you at $70, then you get called, you could lose money.
banks
BUY
BUY
August 21, 2019
Long term? India should be in a portfolio, because it is a growing economy with a middle class larger than the US population. Don't invest a lot here, but some, say 5%, the same weighting as China's. But India needs to further build its infrastructure, nowhere near China's. The president is pro-business.
Long term? India should be in a portfolio, because it is a growing economy with a middle class larger than the US population. Don't invest a lot here, but some, say 5%, the same weighting as China's. But India needs to further build its infrastructure, nowhere near China's. The president is pro-business.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
Can this go to 0? Yes. It's triple the exposure to the Nasdaq. A 33% decline in the Nasdaq means losing 100% in TQQQ. Buy a call option on QQQ--same leverage, but limited risk. Think of it as a long-term option, though it could go to zero, too, but it's a smaller loss. Any leveraged ETF trades the futures contract. So, they have to roll those futures every night. And that roll costs the asset every night.
Can this go to 0? Yes. It's triple the exposure to the Nasdaq. A 33% decline in the Nasdaq means losing 100% in TQQQ. Buy a call option on QQQ--same leverage, but limited risk. Think of it as a long-term option, though it could go to zero, too, but it's a smaller loss. Any leveraged ETF trades the futures contract. So, they have to roll those futures every night. And that roll costs the asset every night.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
ETF/stock allocation? 65% of his portfolios are in their pools or ETFs. Stocks are riskier than an ETF, because a basket avoids company-specific risk. If one company in an ETF is hit by, say, wage raises, then it will be offset by other stocks that don't face wage raises. But if you own that company and it faces wage raises, then that stock will get hit. Hold no more than 50% in stocks.
ETF/stock allocation? 65% of his portfolios are in their pools or ETFs. Stocks are riskier than an ETF, because a basket avoids company-specific risk. If one company in an ETF is hit by, say, wage raises, then it will be offset by other stocks that don't face wage raises. But if you own that company and it faces wage raises, then that stock will get hit. Hold no more than 50% in stocks.
Richard Croft
President, R.N. Croft Financial Group Inc.
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Up 8%)A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48 A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48. He's holding onto this. Apple is going well and the CEO has the ear of Trump.
(A Top Pick Aug 02/18, Up 8%)A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48 A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48. He's holding onto this. Apple is going well and the CEO has the ear of Trump.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Down 6%)A covered call. Bought at $338.50, sold 360 at $(21.50), net cost $317, now $210.48. The streaming landscape has changed with more competitors entering this sector. Netflix is spending a whack of money on new shows. They could have a rough road.
(A Top Pick Aug 02/18, Down 6%)A covered call. Bought at $338.50, sold 360 at $(21.50), net cost $317, now $210.48. The streaming landscape has changed with more competitors entering this sector. Netflix is spending a whack of money on new shows. They could have a rough road.
Unknown
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Up 7%) He's holding onto this. It benefits from momentum stocks like Shopify and Square.
(A Top Pick Aug 02/18, Up 7%) He's holding onto this. It benefits from momentum stocks like Shopify and Square.
BUY
BUY
August 21, 2019
Gold itself? He's not a gold bug, but likes XGD, which is a basket of gold-mining companies. Their costs are fixed, but their product will rise in value as does the price of gold. Also, Agnico Eagle will benefit nicely from the rising price of gold, and they are in this ETF. He has no price target on gold.
Gold itself? He's not a gold bug, but likes XGD, which is a basket of gold-mining companies. Their costs are fixed, but their product will rise in value as does the price of gold. Also, Agnico Eagle will benefit nicely from the rising price of gold, and they are in this ETF. He has no price target on gold.
E.T.F.'s
WEAK BUY
WEAK BUY
August 21, 2019
A great long-term hold. This generates income. Bonds won't do this anymore with today's low rates. No, markets won't take off because there's so much uncertainty.
A great long-term hold. This generates income. Bonds won't do this anymore with today's low rates. No, markets won't take off because there's so much uncertainty.
BUY
BUY
August 21, 2019
Nothing wrong with a balanced ETF, a nice stock/bond mix. A balanced ETF makes a good core holding.
Nothing wrong with a balanced ETF, a nice stock/bond mix. A balanced ETF makes a good core holding.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.
He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.
indexes
BUY
BUY
August 21, 2019
ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
If Brexit crashed out of the EU without a deal, is there an ETF to pick up then wait for a rebound? Good question. He's thinking of buying UK pounds after Brexit; the pound has slipped a lot. The EU won't discuss the last negotiation, so he expects a hard exit which will challenge UK markets. He can't think of an ETF now, but Google for a UK-specific one.
If Brexit crashed out of the EU without a deal, is there an ETF to pick up then wait for a rebound? Good question. He's thinking of buying UK pounds after Brexit; the pound has slipped a lot. The EU won't discuss the last negotiation, so he expects a hard exit which will challenge UK markets. He can't think of an ETF now, but Google for a UK-specific one.
Richard Croft
President, R.N. Croft Financial Group Inc.
TOP PICK
TOP PICK
August 21, 2019
Covered call: buy at $30.70, sell January 30 calls at $4.30, net per share $26.40. After taking the backseat to Intel, they now have some of the best chips on the market in both PCs and gaming. Their great run will continue; he sees little downside. However, because they are volatile, their option premiums will be pricey. If AMD stays flat or rises, you get 13.6% over 4 months.
Covered call: buy at $30.70, sell January 30 calls at $4.30, net per share $26.40. After taking the backseat to Intel, they now have some of the best chips on the market in both PCs and gaming. Their great run will continue; he sees little downside. However, because they are volatile, their option premiums will be pricey. If AMD stays flat or rises, you get 13.6% over 4 months.
electrical/electronic
TOP PICK
TOP PICK
August 21, 2019
A partial covered call. Buy 200 shares at $107.25, sell 100 and get $4.55, net $105.08/share. And let the other 100 shares run and enjoy the upside. And you're paid a nice dividend similar to Canadian banks.
A partial covered call. Buy 200 shares at $107.25, sell 100 and get $4.55, net $105.08/share. And let the other 100 shares run and enjoy the upside. And you're paid a nice dividend similar to Canadian banks.
Financial Services
TOP PICK
TOP PICK
August 21, 2019
Covered call to January 2020 Very volatile. You're writing a slightly in-the-money covered call
Covered call to January 2020 Very volatile. You're writing a slightly in-the-money covered call
computer software
COMMENT
COMMENT
August 21, 2019
An ETF that includes Corus? Look at VOX.