Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Richard Croft commented about whether BA-N, FXI-N, AAPL-Q, DXP-T, TD-T, VIX-I, BOTZ-Q, BAC-N, DOL-T, XLF-N, ROKU-Q, IWM-N, HGR-T, XIU-T, ZWU-T, RGRE-T are stocks to buy or sell.

WEAK BUY

Good way to diversify outside Canada? Nice yield, but value will go down as interest rates go up, much like bonds. With dollar cost averaging over the next year, you might be OK.

PAST TOP PICK
(A Top Pick Dec 18/17, Up 30%) Buy iShares Russell 2000 March 2018 150 calls. Bought at 6, closed at $7.80.
PAST TOP PICK
(A Top Pick Dec 18/17, Up 56%) Sell April 35 Puts. It had the highest premium at the time, highest risk and volatility.
PAST TOP PICK
(A Top Pick Dec 18/17, Down 2%) Thinks it will do quite well next year. There’s been a rotation out of tech into value, which is where you find financials.
COMMENT
Is the recent volatility due to algorithms or trade fears? October 10 dip was algorithms. The corrections that used to take weeks, now take hours, and there’s nothing you can do. You just have to be able to weather those movements. The main job of a financial adviser is managing the emotions of investing.
COMMENT
Do you look at the technicals in an options trade? It’s hard to trade options technically. But he’d use Bollinger bands, to give him support in his strategy of where he’s going to trade in a range.
COMMENT
Add to or sell preferred shares now that rates are normalizing? Go with floating rate preferred. CPD is an iShares ETF that covers this. Floating rates will bump up with interest rates.
DON'T BUY
Purchase puts and short the stock? Don’t buy the stock. A lot of the bad news is already priced in, so puts are not a great idea right now. Stock will be affected by Amazon. The company will either recover, or it will go bankrupt.
COMMENT
Can you recommend a bond ETF? XBD from iShares, which tracks the Canadian corporate and government bond universe. Duration is about 14.5, so be aware that with a 1% rise in rates it may take a 14% hit.
BUY
Buy a long call option in January? Yes, go ahead. He just bought the January 27 option.
BUY
A great ETF. Put some money in. Trump’s strategies are misguided. Factories are going to have more robotics in them, and people are going to have to learn to use them.
COMMENT
This is why people find options are confusing. Stocks deal with total return. Volatility is risk, and that’s the options world. Predicting the volatility is as important as predicting earnings. The VIX hasn’t risen dramatically recently, even though it’s around 20%.
BUY
He’s bullish on all the Canadian banks. TD has more US exposure, as do Royal and BMO. Scotia is international, CIBC is domestic. With TD, you get an American bank with the dividend tax credit. Canadian banks should be a core holding, and they all raised the dividend this year.
COMMENT
What’s the lowest risk for a retiree? GICs. Ladder them. Takes the risk off the table. They don’t carry the same emotion as stocks. After that, he would buy the Canadian banks.
COMMENT
Why such a large correction? Preferred shares are a big part of this fund, and they took a hit because of higher interest rates.