Trading Idea

Looking for a Bond Substitute?
February 13, 2017
Dividends

Looking for a Bond Substitute?

Richard Croft

Despite the hype around the Trump Rally, some stocks have been left behind. Notable among the group; BCE Inc. (TMX: symbol: BCE) which closed last Friday at $58.28. Well off the highs of August 2016 when the stock traded above $63 per share.   A growth investor might consider that tragic. However, most investors see this...

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1 month ago
Why pay more when you can PEY less?
January 05, 2017
Bullish Outlook

Why pay more when you can PEY less?

Christopher Thom

Peyto (TSE: PEY) shares did well in 2016, rising 33.5%, as natural gas prices rose almost 64%. Natural gas accounts for 90% of Peyto’s total production volume.  In my view, the shares are undervalued and could be purchased outright at this level.  However, two issues arise with that idea.  First, we are here to talk about...

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3 months ago
Fading the Trump Hysteria
January 05, 2017
Protection

Fading the Trump Hysteria

Patrick Ceresna

The stock markets are first and foremost a behavioral exercise.   Investors are always trying to price in the future – 6 to 9 months in advance.  To put that statement into perspective, one must recognize that the market is therefore driven by perceptions and assumptions more than it is about realized certainties. That...

412
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3 months ago
“Buying the Dip” on REITs
December 05, 2016
Bullish Outlook

“Buying the Dip” on REITs

Patrick Ceresna

It is incredible to have witnessed what has transpired in the month of November 2016.  Trump’s victory has spurred a complete 180 degree turn in macro thinking. Some of the great macro men like Ray Dalio, Stanley Drunkenmiller and Jeffery Gundlach have discussed what is now openly believed to be a new growth and inflation...

635
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4 months ago
Playing the US Election
November 07, 2016
Trading Idea

Playing the US Election

Richard Croft

The US equity markets are re-setting some old records. At the close of trading last week, the S&P 500 composite index and the Dow Jones Industrial Average did something had declined for nine straight sessions. The last time we saw this measure of consistent bearishness was in December 1980 just before Ronald Reagan took...

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5 months ago
An Electrifying Yield on a Utility Stock
October 12, 2016
Concepts

An Electrifying Yield on a Utility Stock

Christopher Thom

Utility stocks are often loved by yield investors. They provide steady dividends, are regulated businesses, and are less cyclical. Generally they can be called “boring,” but for the investors who own utility stocks that is what they love about them. We’ve seen this sector do well over the last few decades as interest...

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5 months ago
Covered Call Horror Stories
September 13, 2016
Trading Idea

Covered Call Horror Stories

Richard Croft

In the late 1990s I sold a covered call on, let’s call the security, XYZ. A “nom de plume” to protect the guilty… or innocent, depending on your point of view. In any event, XYZ was a particularly volatile technology company trading at $21.75 per share in January 1998. I bought the shares for myself and clients and...

639
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6 months ago
Covered Calls versus Naked Puts
August 15, 2016
Trading Idea

Covered Calls versus Naked Puts

Richard Croft

Covered call writing is a low risk option strategy. If the underlying rises above the strike price the calls are assigned, you deliver the shares and exit with the best case scenario. Covered calls make money in a rising or flat market and because the premium received reduces the cost of the underlying shares, is less risky...

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7 months ago
The Covered Strangle is both an Income and Investment Strategy
July 29, 2016
Revenue

The Covered Strangle is both an Income and Investment Strategy

Alan Grigoletto

Canadian investors seeking an index or single stock option strategy may want to consider the covered strangle. It can be employed to enhance yield and provide a strategic means to both add to and exit existing positions. Like any options strategy there are trade-offs, and the covered strangle does pose some risk.   The...

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8 months ago
CANADA – Recession Worries!
July 27, 2016
Trading Idea

CANADA – Recession Worries!

Richard Croft

Probably the most noteworthy event in the first half of 2015 was the surprise rate cut issued by the Bank of Canada (BoC) in the first quarter. It was designed to provide “insurance against a downturn” in light of the sharp decline in oil prices. The BoC was right to be concerned. Unfortunately policymakers underestimated...

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8 months ago