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Spread strategies. This strategy is designed to reduce the risks and the cost of the option you want to hold. If you are bullish and you want a Call, you put on a Spread. E.g. you have a $50 Call, which costs $1.50 and you sell a $55 Call for $0.75, so you have the play between $.50 (?) and $.75 so the maximum you are going to make on this is about $.75.

Unknown
COMMENT

BMO Dow Jones Industry (ZWA-T) or Horizons Enhanced US Equity (HES-T)? These writes Calls on Dow Jones Industrials and on the individual stocks, rather than on the index. Likes both and that he can use these to basically draw income from the US market and will be taxed as capital gains. However, there is a big difference between the two. HES-T writes options on all the stocks all the time, whereas this one is on 50%-60%. This one has outperformed HES-T. If you are looking for income as well as the upside, you should look at this one.

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COMMENT

BMO Dow Jones Industry (ZWA-T) or Horizons Enhanced US Equity (HES-T)? These writes Calls on Dow Jones Industrials and on the individual stocks, rather than on the index. Likes both and that he can use these to basically draw income from the US market and will be taxed as capital gains. However, there is a big difference between the 2. This one writes options on all the stocks all the time, whereas ZWA is on 50%-60%. ZWA has outperformed this one. If you are looking for income and expecting the market to be relatively flat, then you look at this one.

E.T.F.'s
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Gold ETF? Has been quite bearish on gold. Can’t see any reason why gold can’t come back down to $700. US$ is doing very well so he can’t see gold recovering anytime soon. If you did want to buy one, he would suggest the SPDR Gold ETF (GLD-N).

Unknown
COMMENT

The question on Preferreds really has to do with Perpetuals, in other words, how many Perpetuals are in the particular ETF. This one does have perpetuals and they are going to be battered by any rise in interest rates.

E.T.F.'s
BUY

US industrials ETF? This is the one he would recommend.

E.T.F.'s
BUY

Likes this because it is a Covered Call situation. Utilities did get beaten up. This is something that he would like to have as part of his income side of a portfolio. Yield of 6.25%.

E.T.F.'s