Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
May 10, 2016

He still likes the royalty model and thinks he is getting this at half its valuation. They have money to spend and things they can do.

Show full opinionHide full opinion

He still likes the royalty model and thinks he is getting this at half its valuation. They have money to spend and things they can do.

COMMENT
COMMENT
May 10, 2016

Biotech is a very volatile area of the market. This index has options on it. If you are a believer in Biotech, then you are really saying you are a growth investor that has a speculative bent that is looking for a real big move. Rather than paying $250 or so, you might want to think about getting an at the money call option, paying $20, and go for the ride. The worst case scenario is that you will lose $20.

Show full opinionHide full opinion

Biotech is a very volatile area of the market. This index has options on it. If you are a believer in Biotech, then you are really saying you are a growth investor that has a speculative bent that is looking for a real big move. Rather than paying $250 or so, you might want to think about getting an at the money call option, paying $20, and go for the ride. The worst case scenario is that you will lose $20.

COMMENT
COMMENT
May 10, 2016

This is a good holding. They are writing Call options against utilities that are inside the ETF. What you are really capturing here are option premiums, and he thinks they write on 40% of the underlying stocks. Generally, utilities are not a growth sector, but they pay a very good dividend and they are a defensive sector. If you are writing covered calls on that, you are increasing the dividend and capping the upside. Not a bad thing in an area that doesn’t have a lot of upside. An excellent strategy if you are inside a LIF. This is a strategy that you could dovetail with other things like a REIT.

Show full opinionHide full opinion

This is a good holding. They are writing Call options against utilities that are inside the ETF. What you are really capturing here are option premiums, and he thinks they write on 40% of the underlying stocks. Generally, utilities are not a growth sector, but they pay a very good dividend and they are a defensive sector. If you are writing covered calls on that, you are increasing the dividend and capping the upside. Not a bad thing in an area that doesn’t have a lot of upside. An excellent strategy if you are inside a LIF. This is a strategy that you could dovetail with other things like a REIT.

COMMENT
COMMENT
May 10, 2016

These are the 6 major banks in Canada, and they are writing covered calls against 40%-50% of the portfolio. What you are collecting is the dividends from the bank, plus the option premium that the fund is writing on an annual basis. They’ve raised their distribution wants. The banking sector is a good place to be. He would caution you to look at this in the context of the other banks you are holding, only that you may become very overweighted in that specific sector.

Show full opinionHide full opinion

These are the 6 major banks in Canada, and they are writing covered calls against 40%-50% of the portfolio. What you are collecting is the dividends from the bank, plus the option premium that the fund is writing on an annual basis. They’ve raised their distribution wants. The banking sector is a good place to be. He would caution you to look at this in the context of the other banks you are holding, only that you may become very overweighted in that specific sector.

COMMENT
COMMENT
May 10, 2016

Probably one of the more volatile big name banks in the US. Trading at 60% of Book Value. Doesn’t think there is a lot of downside. It is going to be an increase in interest rates that drives this bank.

Show full opinionHide full opinion

Probably one of the more volatile big name banks in the US. Trading at 60% of Book Value. Doesn’t think there is a lot of downside. It is going to be an increase in interest rates that drives this bank.

PAST TOP PICK
PAST TOP PICK
May 10, 2016

(A Top Pick Aug 18/15. Up 0.53%.) Bought this at $80, and wrote an $80 Call reducing the price to $77.11, that was the net cost. If you had bought this without writing the Call you would be down 2.5%-3%. By doing it this way he is up a little bit and still owns the stock and collected the dividends in the process.

Show full opinionHide full opinion

(A Top Pick Aug 18/15. Up 0.53%.) Bought this at $80, and wrote an $80 Call reducing the price to $77.11, that was the net cost. If you had bought this without writing the Call you would be down 2.5%-3%. By doing it this way he is up a little bit and still owns the stock and collected the dividends in the process.

PAST TOP PICK
PAST TOP PICK
May 10, 2016

(A Top Pick Aug 18/15. Up 34.8%.) He wrote a Covered Option that did not get assigned, which means that the stock went in and the option expired worthless.

Show full opinionHide full opinion
Facebook (FB-Q)
May 10, 2016

(A Top Pick Aug 18/15. Up 34.8%.) He wrote a Covered Option that did not get assigned, which means that the stock went in and the option expired worthless.