Yearly Archives: 2013

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April 29, 2013
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Strangling CIBC?

Patrick Ceresna

The last 2 months have been nothing short of a roller-coaster ride for Canadian investors. For most of 2013, the resource stocks have been struggling while the bank stocks were a glimpse of hope. That was short lived as February rolled in as a new round of selling started pressuring the darling Canadian banks. We have now seen...

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7 years ago
no-cover
April 29, 2013
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Tweet Fear

Richard Croft

Last Tuesday at approximately 1:00 pm EST, a Tweet from the Associated Press (AP) Twitter account read as follows; “Breaking: Two Explosions in the White House and Barack Obama is injured.” Within a space of three minutes, US $136.5 billion of the S&P 500 index’s value was wiped out. The S&P 500 index fell...

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7 years ago
no-cover
April 22, 2013
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Old Rules No Longer Apply

Richard Croft

Over the past 30 years, globalization has made the world a much smaller place. Supported by advances in technology and communications, corporations have sought markets outside their domestic borders. As a middle class takes root in emerging economies, those markets become increasingly important to the bottom line of global...

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7 years ago
no-cover
April 15, 2013
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Perspective

Richard Croft

Listen to the US media and you might think your portfolio has underperformed, with US stocks making record highs with a 12.14% year to date return for the iShares S&P 500 index ETF (TMX: XSP). Note this ETF is hedged to the Canadian dollar, which added about 3 percentage points to the year-to-date return. Unfortunately,...

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7 years ago
no-cover
April 10, 2013
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Follow Up on Royal Bank

Patrick Ceresna

On February 28th, 2013 we wrote a blog discussing if Royal Bank was worth investing in. To read the blog, click here: http://optionmatters.ca/blog/2013/03/01/royal-opportunity/ Our focus was to find an interesting way for investors to play Royal Bank. At that time in February, these were the facts: Royal Bank was trading at...

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7 years ago
no-cover
April 08, 2013
Other

Option Writing Strategies Are Not Sure Bets

Richard Croft

Is there a particular option strategy that works all the time? The answer of course is no just as it is with stock picking or asset allocation metrics. Despite that many investors focus entirely on option writing strategies. The logic seems sound given the potential cash flow and the fact that most options expire worthless....

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7 years ago
no-cover
April 02, 2013
Other

The Put Backspread Hedge

Patrick Ceresna

The Canadian market has continued to complacently forge ahead. Overall we have seen little progress higher throughout March as the international geopolitical circumstances in Cyprus and Korea have started to slowly taper investor enthusiasm. In past blogs, the current state of the implied volatility priced into index options...

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7 years ago
no-cover
April 01, 2013
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The Power of Propaganda

Richard Croft

It must have been a slow week, or perhaps the news media was providing us with some much needed comic relief. When the long lines of depositors making a run on Cypriot banks never materialized, we were treated to pictures of Kim Jong Un, North Korea’s leader for life and close friend of Dennis Rodman, signing an order to put...

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7 years ago
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March 25, 2013
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Makes you Wonder What’s Next?

Richard Croft

The title reflects the elephant in the room that overhangs the silent majority; is anything safe from the long arm of distressed governments? It sheds light on the veiled risks associated with unchecked governments searching for new sources of revenue! This week we witnessed the “what next” which is the Cyprus Solution....

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7 years ago
no-cover
March 22, 2013
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To Hedge or Not To Hedge

Patrick Ceresna

The global stock markets have been kind to investors over the last 3 months as many international markets are up 2-10% in the first quarter alone. But not every investor can share in the celebration. When looking at the average investment portfolio for a Canadian, it has been a mixed picture. This is because the average...

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7 years ago