STOCKCHASE

5.230

(A Top Pick Oct 1/10. Down 61.1%.)

2011-12-21

Comment

Canadian Oil Sands

COS-T

22.570

Good time to sell Puts into the market? By doing this, you are taking on an obligation to buy the shares so you have to be comfortable owning this company. Also, on a stock like this that has a pretty decent dividend, there is a decent cash flow coming out on a regular basis and is about 4% higher than the risk free rate and options tend to be priced off the risk free rate, you actually get a much higher premium on the Put than you would on the Call option. Very good strategy.

2011-12-21

Comment

Cisco

CSCO-Q

17.920

January $19 strike call. Safe bet? That's an aggressive trade. These options are in the middle in terms of costs. Thinks there is some resistance at around $19 so he would rather write a Put or do a covered call, in other words own the stock and Sell a Call against it.

2011-12-21

TOP PICK

Microsoft

MSFT-Q

25.760

Writing an April Put at $25, which will give you about $1.05 today. You're basically taking on an obligation to buy the stock at $25.

2011-12-21

TOP PICK

SPDR S&P 500 ETF

SPY-N

124.170

(A Top Pick Oct 1/10. Up 10.53%.)A straddle on S&P 500 ETF. $124 is the strike price and 25 points is the cost and it goes out to December/12. Strictly a volatility trade. If the market goes up or down dramatically you will make money.

2011-12-21

Comment

Suncor Energy Inc

SU-T

28.080

If you think oil is going to do okay in the next year, and he thinks it will have a slow recovery.

2011-12-21

Comment

BMO Covered Call Cdn Banks ETF

0.020

Options. Hasn't been a lot of movement because the market is in a trading range so being able to write options and collect cash flow seems to be the strategy of choice right now.

2011-12-21

BUY

ZWB-T

13.640

Covered Call Cdn Banks ETF. Likes this one and uses it for some of his income portfolios. Very good distribution. With this product, you are buying the banks at a pretty decent price right now. All of the distributions from the premiums are being paid out to the unit owners (also believes they are paying the dividends) so take the distribution and pretend it should be half. Take the other half and either set it aside and buy more units or use a DRIP is available.

2011-12-21

Comment

Horizons Enhanced Income Gold ETF

HEP-T

7.740

Covered Call Cdn Banks ETF (ZWB-T) or Enhanced Income Gold ETF (HEP-T)? Would prefer the gold HEP as he thinks gold is one of the best sectors of the economy against which to write covered calls.

2011-12-21

Comment

Horizons Enhanced Income Energy ETF

HEE-T

7.500

Enhanced Income Energy ETF. A covered call writing ETF. The reason there is a 21% distribution is because they are taking all of the option premiums that they sold initially and paying it out to you. That is not a realistic number for covered call writing on a long-term basis. If you own, take half the distribution and reinvest the other half back into the fund.

2011-12-21

TOP PICK

42.480

Covered Call Write. Buy at $42.60, Sell Oct 44 Calls at $2.20. This has you owning this company at about $40 a share and you should be fine. Small dividend.

2011-06-24

TOP PICK

Bank of Montreal

BMO-T

59.690

Because we are in a very slow period in the market and probably in a trading range and looking for dividend stocks, this one happens to be the highest yielding bank stock currently. Pretty good dividend yield.

2011-06-24

Comment

Cypress Semiconductor

CY-Q

19.900

6-month call option with a $20 straight at a cost of $2.30 if he feels the stock is going to $28? If the stock goes to $28 that's about a 40% return, if you're right, you make 300% on the Call. If this doubles, take at least half your position off the table.

2011-06-24

PAST TOP PICK

Goldcorp Inc

G-T

46.240

(A Top Pick June 14/10. Up 5%.) Sell Oct $42 Put @ $2.30.

2011-06-24

PAST TOP PICK

Teck Resources Ltd. (B)

TCK.B-T

45.950

(A Top Pick June 14/10. Up 17%.) Sell Oct $35 Put @ $2.50.

2011-06-24

DON'T BUY

Sino-Forest Corp

TRE-T

2.600

Straddle? Oct 3 Calls last traded at $1.20 and the Puts traded at $1.35. The options on the stock tend to have very wide Bid/Ask spreads. Doesn't know if you would be able to get it on at a reasonable price. He would have reservations about doing this.

2011-06-24

TOP PICK

18.490

Buy Dec 19 Call Options on the S&P/TSX 60 ETF. Thinks we are in a trading range and in the 4th quarter we may actually see ourselves come out of this. Think you could get a double on your money. (If you do, sell half your position.)

2011-06-24

Comment

iPATH S&P 500 VIX Short-Term

0.020

Writing options on a gold stock is an extremely good thing to do. Gold stocks tend to be in the 50% to 75% percentile of volatility so they tend to be more expensive than the average option. On occasion there is a case to buy the odd Call on gold stocks because Gold has had a big sell off and he wouldn't be surprised if they have a bounce and come back.

2011-06-24

Comment

Netflix Inc.

NFLX-Q

256.960

Very volatile stock and he thinks it has gotten ahead of itself. Thinks there is a lot of risk in this company. He would take profits whenever you could on this one. He would consider a Bear/Call Spread.

2011-06-24

HOLD

Baidu.com

BIDU-Q

128.680

Sept 85 Puts. Too far out in price and time? You are currently $40 out of the money. There would have to be a serious sell off in China and he doesn't see this happening. Really a lottery ticket at this stage and he wouldn't add to them.

2011-06-24

DON'T BUY

iShares Silver ETF

SLV-N

33.360

Silver ETF. Silver is at a speculative stage. These trusts have options available on them so if you are going into silver at all, he would be writing covered calls against them. He wouldn't be comfortable holding this.

2011-06-24

PAST TOP PICK

VXX-N

24.531

(A Top Pick June 14/10. Up 7.78%.) S&P 500 VIX Short Term. Buy @ current price and Sell a July $27 covered call.

2011-06-24

Comment

BMO Covered Call Cdn Banks ETF

ZWB-T

15.150

Covered Call Cdn Banks ETF. Dividend is based on ability of Cnd banks to pay a dividend. The other part of the cash flow is from the managers selling covered calls against individual bank stocks. If banks rally, you lose out on this portion because you will lose the strike price on the call. Call option premiums in bank stocks are in the lowest quartile of all stock options. He prefers to do his own covered calls. Dividend is safe and cash flow is reasonable.

2011-06-24

DON'T BUY

HAP Floating Rate Bond ETF

HFR-T

10.110

Floating Rate Bond ETF. Not 100% sure what they are doing inside this ETF. Could be doing short ladders and could be rolling them, which creates the short rate. Tough to get yield on bonds at any level.

2011-06-24

Comment

HAP Enhanced Income Equity ETF

HEX-T

9.340

Enhanced Income Equity ETF. This is a covered writing fund and is not on a specific sector and is on 30 big companies in the TSX 60. Option premiums that are being generated is being paid out as a distribution. You have to believe that the manager has the capability of rolling the positions to offset some of the risks.

2011-06-24

TOP PICK

Apple

AAPL-Q

356.850

Buy July $355 calls. This is a bet that the trend in Apple will continue. Premiums on options for this stock are not terribly expensive (don’t pay more than $25). If the stock hits $400, which he thinks it will, you’ll double you money. If the stock drops, the most you can lose is the cost of the Call.

2011-02-11

PAST TOP PICK

46.820

(A Top Sell March 16/10. Up 9.5%. Sell October 40 Puts @ $3.80.) Stock was around $40 and stock was at $48 in October so option expired. He just kept the money he took in as a credit.

2011-02-11

PAST TOP PICK

96.310

(A Top Pick March 16/10. Up 95.17%. Buy Oct ’74 Calls @$7.25.) This was a straight bet that the stock was going up. Option was worth $14.50 on expiration.

2011-02-11

TOP PICK

Potash Corp of Saskatchewan

14.770

Sell Nov $16 puts and Buy Nov $11 puts. This bank will survive and will probably do all right. In effect he is Short $16 puts and is obligated to Buy shares at $16 between now and November. He has an out at $11. In a worse case scenario, if everything collapses, his risk is limited to $11. You get a $2 credit roughly.

2011-02-11

Comment

Bank of Nova Scotia

BNS-T

59.280

2012 Calls with options against them. Would strangles (Call Option and Put Option on the same stock) be better because of low volatility? If you don’t think you should write Calls, he doesn’t think you should write both of them.

2011-02-11

Comment

POT-T

185.490

If bullish on this, you could Sell a Put, which obligates you to Buy the stock at a certain price, which will have to be margined and require capital. To get around this you Buy a Put at a lower strike price, which limits your risk to the difference between the strike prices.

2011-02-11

TOP PICK

SPDR S&P 500 ETF

SPY-N

133.110

SPDR S&P 500 ETF. Buy Sept $135 Calls and Buy Sept $135 puts. The total cost for the straddle should not exceed US $13.60 per share. Fed seems to have its hand under the market and supporting it. Something could blind side it giving a significant short lived sharp downturn. If the market goes one way or the other significantly between now and Sept, this straddle will make money. Look to get about 120% on one side of it. Doesn’t know which side first. Whichever side makes enough to cover the cost of the straddle, take it off and leave the other one on.

2011-02-11

PAST TOP PICK

iShares S&P/TSX Capped REIT

19.880

(A Top Pick March 16/10. Up 13.96%. iShares Large-Cap Covered Strangle expiring Mar 18/11.) Started with owning the stock and did a covered straddle to Sell his holding at $18. Then sold a March 17 Put at the same time and got $1.20 a share. He’ll end up losing his shares but will keep both premiums.

2011-02-11

BUY

XRE-T

14.070

S&P/TSX Capped REIT is the simple REIT ETF that he would choose. Has a lot of liquidity, which is important and has options on it, which is useful.

2011-02-11

Comment

0.020

What happens to Options when a company is acquired? Options Clearing Corp is mandated to change the options contract.

2011-02-11

Comment

BMO Covered Call Cdn Banks ETF

0.020

Deep in the Money Call Options (e.g. $50 stock with a $30 Strike Price) versus underlying stocks? Not a real fan of these because if you are going into the options market you are effectively gaining the advantage of having limited risks.

2011-02-11

Comment

Delcath Systems

DCTH-Q

11.040

Will have an FDA decision in July. Whether they get approval or not, there will be a huge move up or down. Options strategy? Market knows this is going to have an impact so this gets priced into the options. Very difficult to do this.

2011-02-11

Comment

ZWB-T

15.650

Covered Call Cdn Banks ETF. Basically a Covered Call Write on bank stocks so you are buying bank stocks and getting cash flow from covered writing. Downside is if you think banks will do reasonably well, you are capping your upside. Could use this as an alternative to bonds or preferred shares. Good in your portfolio if you are looking for an income component.

2011-02-11

TOP PICK

47.940

Buy the stock ($48.10) and Sell the April 2011 $48 Call giving a premium of $4.20. Covered Call strategy. Not a gold bug but thinks gold could go a little higher. Option writing is a great strategy on gold stocks.

2010-10-01

BUY

76.500

Covered calls? This stock has been particularly volatile lately and the option premium has been richer than normal. Option writing on this probably has some value right now

2010-10-01

PAST TOP PICK

76.500

(A Top Pick Aug 17/09. Up 115%.) Bought Jan $54 call option.

2010-10-01

PAST TOP PICK

iShares S&P/TSX Global Gold

13.300

(A Top Pick Aug 17/09. Up 2%.) Bought the stock and sold December $19 Call options.

2010-10-01

Comment

Manulife Financial

MFC-T

12.760

A play on the stock market. If you think stock market is going to have a decent year in 2011 the stock will probably come back. Caller wants to write a $10 Put, which is selling a Put option. He takes on an obligation to buy the stock at $10. Keeps whatever premium he gets if stock closes above $10.

2010-10-01

TOP PICK

SPDR S&P 500 ETF

SPY-N

114.610

Sell Dec 1/17 Calls @ $3.25 and Buy Dec 1/27 Calls @ $0.40. (Dec 1/27 Call is hedging your upside.) Not sure the S&P 500 has got much upside beyond $1170 and feels $1200 would be the highest. This Bear Call Spread will be profitable up to about $1190 on the S&P 500. Don't hold this to maturity!

2010-10-01

Comment

Best Buy Company Inc

BBY-N

40.760

Buying a Call at a Strike Price @ $1.90 and Selling a $45 Call and collecting $0.80. Thinks the holiday season should be good this year and this would be a good move.

2010-10-01

Comment

XGD-T

25.020

S&P/TSX Global Gold ETF. Has a basket of Canadian gold stocks. He prefers covered calls on gold stocks, where you Buy a gold stock and then Sell a Call on the same stock.

2010-10-01

Comment

SPDR Gold ETF

GLD-N

128.910

Gold ETF. This is a play on bullion, not gold companies.

2010-10-01

DON'T BUY

HBP S&P/TSX 60 Bear+ ETF

HXD-T

10.740

S&P/TSX 60 Bear+ ETF. Performance of this is indicating that TSX has been going the other way. Not so sure TSX is going to fall off a cliff unless something blindsides us in the next 2-3 months. Not a big fan of the double up on a short in the Canadian market.

2010-10-01

PAST TOP PICK

ProSh UltShr S&P500 E.T.F.

SDS-N

29.330

(A Top Pick Aug 17/09. Down. Unknown %.) Dec. $46 Call was a short position on the S&P 500.

2010-10-01

Comment

HBP NYMEX Nat'l Gas Bull+

HNU-T

3.550

NYMEX Nat'l Gas Bull+ ETF. Goes down even on days when gas goes up but is always one of the highest volume stocks traded? This market is in CANTANGO, which means every time they sell near-month futures, they pay more for longer futures. This has a negative value on the ETF.

2010-10-01

TOP PICK

iPATH S&P 500 VIX Short-Term

VXX-N

17.040

S&P 500 VIX Short-Term. Buy the January 17 Calls. This is a trade on volatility and gives you a hedge on your portfolio if something unexpectedly comes out of the woodwork.

2010-10-01

BUY

BMO Emerging Mkts Bond Hedged CAD

ZEF-T

16.400

Emerging Markets Bond Hedged CAD. Emerging market is one of the growth areas right now. Yield is a little better than what you would get in Canada. Hedged so you don't have currency exchange problems. Wouldn't have it representing more than 10% of the portfolio.

2010-10-01

Comment

Apple

AAPL-Q

254.280

This is had a big run. If you are bullish on this company, Calls are not overly expensive so it is not a bad trade. If you own the stock, you could write Covered Calls and Sell Puts if you want to own more shares.

2010-06-14

Comment

BCE Inc.

BCE-T

31.240

Caller Sold a Sept Call and a Put and collected about $2. What strategies should he now use? Looks like he will be Called. To go back into the stock, Buy back the $30 Put that you’ve Sold and then Sell another Put at about $32.

2010-06-14

Comment

BP PLC

BP-N

30.670

130% of implied volatility indicating they could go bankrupt. January $30 Calls were trading at $6.85 and Puts at $6.60, a 7 month option, which adds up to $13.45. So trading range between now and January is somewhere between $43 on the upside and $17 on the downside. This range is the risk. Will they be available to afford the cleanup? If you think they will survive, look at Covered Calls. A July Call now is about $4 giving you downside protection to $26.67. Alternatively you could buy a Straddle

2010-06-14

PAST TOP PICK

Canadian Natural Rsrcs

CNQ-T

37.270

(A Top Pick July 9/09. Up 14%.) Covered Call. Buy at $53.65 and write 01/2010 Calls at $7.25.

2010-06-14

TOP PICK

Goldcorp Inc

G-T

43.850

Sell Oct $42 Put @ $2.30. If the stock is above $42 come October, you keep the $2.30. If the stock is Put to you, you Buy at $42 less the $2.30 and this would not be a bad stock to hold anyway.

2010-06-14

TOP PICK

Teck Resources Ltd. (B)

TCK.B-T

35.100

Sell Oct $35 Put @ $2.50. If the stock is above $35 come October, you keep the $2.50. If the stock is Put to you, you buy at $35 less that $2.50.

2010-06-14

PAST TOP PICK

Claymore S&P/TSX Preferred ETF

17.280

(A Top Pick July 9/09. Up 11%.) Covered Call. S&P TSE 60 ETF blue chips. Buy at $14.72 and write 03/2010 Calls at $1.35.

2010-06-14

PAST TOP PICK

CPD-T

16.630

(A Top Pick July 9/09. Up 4% excluding dividends.) S&P/TSX Preferred ETF. Still not a bad investment.

2010-06-14

TOP PICK

iPATH S&P 500 VIX Short-Term

VXX-N

28.430

S&P 500 VIX Short Term. Buy @ current price and Sell a July $27 covered call. High risk because VIX is high risk.

2010-06-14

PAST TOP PICK

Canadian Natural Rsrcs

CNQ-T

78.500

(A Top Pick July 9/09. Up 16%.)

2010-04-23

TOP PICK

Morgan Stanley

MS-N

31.940

Buy Jan $30 Calls at $4.85. Likes the brokerage side of the US financials. Speculative.

2010-04-23

TOP PICK

17.990

You buy Sept 18 Call at a premium of $.80 and Sell the same Calls at $.25. This is a Calendar Spread, which in a low volatile environment, will do well if volatility picks up..

2010-04-23

PAST TOP PICK

17.990

(A Top Pick July 9/09. Up 15%.) Bought S&P TSE 60 ETF blue chips at $14.72 and wrote a March 15 covered call option for $15. You would've taken in $1.31 immediately (taxed as a capital gain). This reduced the cost of the stock giving you lower risks. The strategy makes money in a down or flat market.

2010-04-23

Comment

Claymore S&P/TSX Preferred ETF

0.020

With a strong CDN$, what ETF in foreign markets would be good? If you believe the Cdn$ would continue to strengthen, one of the things you want to look at is an ETF that Hedges back into the Cdn$. This takes currency risk off of the table. If you think the Cdn$ is probably peaking, then don't worry about the currency hedge. There are a number including iShares and Claymore. You can buy the EFA Australia, Asia and the far east, merging markets or S&P 500 from either of these 2 companies.

2010-04-23

Comment

iShares Cdn Dividend ETF

XDV-T

20.150

Cdn Div & Income ETF (CDZ-T) or iUnits Div ETF (XDV-T) for share price growth? They'll both be about the same as they essentially hold the same securities. They buy large-cap stocks in Canada that pay dividends.

2010-04-23

BUY

NYSE Group

NYX-N

33.830

You buy this at $33.70, Sell the NYX January $35 Call at $2.85 and Sell the NYX January $30 Puts at $2.50. If the stock declines, you could average in to the position over the next 9 months. You are obligated to either buy at $30 or sell at $35.

2010-04-23

PAST TOP PICK

CPD-T

16.120

(A Top Pick July 9/09. Up 1.1% excluding dividends.) S&P/TSX Preferred ETF. Gives you quarterly dividends.

2010-04-23

BUY

SPDR Financial E.T.F.

XLF-N

16.780

US financial ETF. US financials are probably going to do OK for the rest of the year. If you're comfortable owning US financials, this would be one of the better ones they use. Has lots of liquidity and you can do auction trading on it.

2010-04-23

Comment

Claymore Cdn Div & Income ETF

CDZ-T

19.170

2010-04-23

DON'T BUY

iShares Cdn Corp Bond ETF

XCB-T

20.110

Cdn Corporate Bond ETF. Thinks interest rates are going up and part of that is reflected in the bond market. He would hesitate. If you were going to buy a bond ETF, he would stay on the short end of the curve.

2010-04-23

Comment

iShares Growth Core E.T.F.

XGR-T

22.960

Income trust ETF. A lot of income trusts have already converted to corporations and the rest must do so by 2011. This will result in your distribution going down that would be taxed as a dividend as opposed to income. You should get a higher yield return on this kind of a product even after 2011 when you compare it to preferred shares. On the flip side, you have a basket of smaller companies. Don't expect a lot of growth.

2010-04-23

DON'T BUY

Claymore 1-5 yr Ladder Corp Bond ETF

CBO-T

20.300

1-5 year Ladder Corp Bond ETF. Thinks interest rates are going up and part of that is reflected in the bond market. He would hesitate. If you were going to buy a bond ETF, he would stay on the short end of the curve.

2010-04-23

Comment

Claymore Broad Emerging Market ETF

CWO-T

31.650

Claymore Emerging Market ETF (CWO-T) versus iShares Emerging-Market ETF (XEM-T)? Claymore uses the PUTSI-RAFI (?) Emerging Markets Index. If you feel fundamental indexing is a more positive, longer-term approach, then Claymore would be best.

2010-04-23

Comment

iShares MSCI Emerging Market ETF

XEM-T

24.330

2010-04-23

Comment

US Financial 15 Split Corp

FTU-T

1.950

Not well acquainted with this but thinks they have taken 15 companies and made a common share and preferred share. Essentially you are buying a long-term Call option on 15 US banks. The preferred share side you collect a yield. US financials have had quite a run.

2010-04-23

Comment

Credit Suisse High Yield Bond

DHY-A

3.050

High yield bond ETF. Has done well because high yield debt took a bad hit during the credit crisis so you are coming off a very low base. Has now been a strong market performance and interest rates have remained low. A lot of these companies are stabilized. He is not a big fan of high yield debt. Treat as a high-risk component of your portfolio.

2010-04-23

Comment

Vanguard REIT ETF

VNQ-N

52.770

US real estate ETF? 12-basis point MER so it is a low-cost one. Indexed based.

2010-04-23

Comment

SPDR DJ REIT ETF

RWR-N

57.990

US real estate ETF? Well diversified un-levered real estate investment.

2010-04-23

TOP SELL

40.640

Sell October 40 Puts @ $3.80. Any of the 6 or 7 major gold stocks tend to be flattish. Writing options is very attractive because option premiums are usually pretty rich, reflecting that the stocks have pretty wide intraday moves but very little trend in any of them.

2010-03-16

TOP PICK

73.570

Buy Oct ’74 Calls @$7.25. If the market continues to go and inflation stays in check, some of the commodity producers could do quite well.

2010-03-16

PAST TOP PICK

Claymore Natural Gas Commodity ETF

17.030

(A Top Pick March 27/09. Up 34.67%.)

2010-03-16

Comment

Encana Corp

ECA-T

33.590

Covered calls. If you really think the stock is going to go down, he is not sure he would continue holding it. Alternatively you could buy a Put to protect yourself. On the other hand if you think it will be flat or go up slightly, look at a June or July option at the money.

2010-03-16

DON'T BUY

GAS-T

4.060

Natural gas. One of the problems with all commodity ETF's is that they tend to trade off the futures market, which tends to give a rollover effect. Would rather hold a basket of commodities within a portfolio.

2010-03-16

TOP PICK

17.920

iShares Large-Cap Covered Strangle. Basically buying underlying stock (about $17.85) and Selling $18 Call for March/11. This presumes the Canadian market will not do much next year. If the market is above the TSX 60 and the XIU is about $18 he'll simply sell it and keep the option premium of $2.40. If the market goes down he will have to buy another block of stock but it will be at $17 a share.

2010-03-16

Comment

0.020

Gold. This has been a very interesting trade in the last 6 months. Feels that it is losing its lustre as crisis insurance. Has done better recently on weakness of the US$! Not a gold bug.

2010-03-16

Comment

HBP Financials Bull+ E.T.F.

0.020

Taxing of options? Options are taxed as capital gains unless you are a professional trader when they are taxed as income.

2010-03-16

PAST TOP PICK

NYSE Group

NYX-N

28.840

(A Top Pick March 27/09. Up 50.13%.)

2010-03-16

Comment

Claymore BRIC ETF

CBQ-T

30.110

BRIC (Brazil, Russia, India and China) ETF. Russia only accounts for 2.9%. Would prefer the 3 iShares China (CXH-T), iShares Brazil (XBZ-T) and iShares India (XID-T). This would eliminate Russia.

2010-03-16

PAST TOP PICK

HFU-T

11.950

(A Top Pick March 27/09. Up 143.75%.)

2010-03-16

Comment

SPDR Financial E.T.F.

XLF-N

15.729

Financial ETF. If you are going to play US banks this is the one he would use and preferably over using individual banks. US banks are not out of the woods yet. Still have some issues. More than $1 trillion in bank reserves set aside for the commercial real estate issues.

2010-03-16

DON'T BUY

Davis + Henderson

DH-T

15.560

They make cheques for banks. More electronic banking is being done so you have to wonder that when this changes into a corporation will there be any growth.

2009-11-20

BUY

Microsoft

MSFT-Q

29.620

Caller: January/2011 $35 Call. Answer: This is a pretty bullish position. He suspects this is probably trading around $1 so that would be all you are risking. LEAPs (Long Term Equity Anticipation unit) tend to be under priced relative to the associated move on the underlying stock. If you're really bullish on this, this is probably a good way to play it.

2009-11-20

PAST TOP PICK

Morgan Stanley

MS-N

32.100

(A Top Pick Feb 5/09. Up 66.7%.) Bought stock @22.50 and Sold Jan 2010 $22.50 Calls for $7.20. Sold Jan 2010 $22.50 Puts @$7.80 and collected $15, which is a capital gain for 2010.

2009-11-20

Comment

Research In Motion

RIM-T

63.660

Caller is down and wants to recover somehow. A: Write a $62 Put which obligates you to Buy more shares at $62. You could probably go out to January/February and get $2 or $3 a share for it and hope that it doesn't fall much lower. Alternatively you could write a December Call around $64 or $66 and then Buy a Call a little further up to create a spread.

2009-11-20

PAST TOP PICK

Suncor Energy Inc

SU-T

38.070

(A Top Pick Feb 5/09. Up 51%.) Bought stock @23.80 and Sold Jan 2010 $24 Calls for $6.05. Also Sold Jan 2010 Puts @$6. Ended up with $12.05 per share in option premiums, taxed as a capital gain for 2010.

2009-11-20

Comment