stockchase picture

Compiling comments that experts make about stocks while on public TV.

Expert Index

List by First Name

List by Last Name

Richard Croft , President

R.N. Croft Financial Group Inc.

Address
218 Steeles Ave East
Thornhill, ON
L3T 1A6

Contact Info
Telephone: (905) 695-7777
Toll Free: 1-877-249-2884
Fax: (905) 695-9777
Email:
Website: http://www.croftgroup.com/index.htm

Bio:

R. N. Croft Financial Group Inc. is a boutique portfolio management company, providing fully customized discretionary asset management to discriminating investors. Our investment approach combines low cost tax-efficient indexed investment strategies, with targeted active management, and sophisticated options techniques to maximize client returns at any risk level. Our portfolio processes are unique, flexible and comprehensive.

Date Signal Chart Symbol Company Opinion Price
2015-08-18 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. China is the 2nd largest economy. The fear that resonates from their devaluation is that it imports deflation into the US market as well as globally. Central Banks around the world, especially Europe and Japan, are trying to re-inflate their economies. Anything that dampens that prospect is a concern. China’s growth rate is slowing which is a worry. Wasn’t really sure that China’s growth rate was ever really the numbers that they had talked about years ago, because growth in GDP is developed domestically. China built an awful lot of ghost cities, which would have contributed to GDP, but there is not any real economic value that was generated by those projects. One of the difficulties in the options market is that in a very flat market, you don’t get a lot of volatility. Without a lot of volatility, the amount of money you collect when you sell an option isn’t great. Thinks the US is going through a correction this year, and it is based on a timeline as opposed to a price correction. In this environment, selling Covered Calls against some of your positions is an excellent strategy.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
_N/A
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Naked Puts, E.G. January 2016. Can this Put be exercised by the buyer at any time? Yes. A Naked Put is an uncovered Put. When you sell a Put Option, you are obligating yourself to Buy the shares of the underlying stock at a specific price.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Energy. Doubts if oil will get back to $75-$80 a barrel until the latter half of 2016, if even then. This is a supply issue. There will be a point where there will be a lot of pain and will cause some countries to shut down production, which will pull in supplies. The US will be the most likely country to do that, as they are the 2nd biggest producer of oil globally. If you cut production, it takes a while to restart it, but it doesn’t take the US long to restart it because of the technology they’ve employed in their process.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
_N/A
2015-08-18 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Market weight versus Equal Weight ETF’s? Market weight ETF’s means the ETF is replicating an index in which various components of the index are weighted within the index according to their market cap. E.G.  In the S&P 500, the largest market cap is either Exxon Mobile (XOM-N) or Apple (AAPL-Q). The market cap is the value of all of the outstanding shares, multiplied by the current price. Probably about a 3% weighting of the market cap of the S&P 500, so they would get a weighting of 3%. If you took all of the 500 stocks in the S&P and make it a CAP weight, you are limiting how much importance the company would have within the index. So even though they represent 3% in terms of their size, you would count them at 1% or 0.5%. Usually you see this occur when you are dealing with a smaller index. He would be more inclined to have a Cap Weight.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
_N/A
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Options? An Option is a derivative and its value depends on an underlying security. A Call Option gives you the right to buy an underlying stock at a certain price for a certain period of time. (Exactly like a warrant.) If the stock is trading below that price, at expiration your option expires worthless. The most you can lose is what you pay for the option, a fraction of what you would pay for the stock.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

How do you know when to sell a Covered Call Option? This is a judgment call. When you buy a stock you should have an exit strategy.  “Is there a point I would sell the stock and at what price would I be comfortable doing that?” If you are not going to exit it, then don’t sell options against it. If you are looking to trade out of it at some point, you should establish a price at which you are willing to sell the shares. The sale of a Covered Call actually does that, so it brings discipline to a trading strategy.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
_N/A
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Covered Calls? This is where you own a share of a stock and, if you believe the stock is going to go up, then you just own the stock. If you are not as sure, and you want to drive income into your portfolio, you can sell a Call Option, which means you are agreeing to sell the shares you own at the price selected. When you do this, you get a premium which is yours no matter what happens.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Selling Calls? Very often he will Buy a Call back before it expires. If it drops in price, very often he will just take the profit on the option and hold the stock, and then rewrite the option again. This has been particularly attractive this year with a flat market that has gone up and down with no direction.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Does the seller of a Covered Call on dividend paying stocks have the responsibility to pay the dividend to the buyer of the call option? When you do a Covered Call, you own the underlying stocks and you get to keep the dividend. You are not responsible to give anything to the Call buyer.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 COMMENT Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Danger to Obama care if the Republicans get in? If you are concerned, he would buy Puts and would probably do a Put Spread, as premiums on healthcare would be fairly rich. Would probably look at health care providers, like Humana (HUM-N), Aetna (AET-N) and SPDR Health Care (XLV-N) because there would probably be a squeeze on margins. Not a strategy that he would be jumping on.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 PAST TOP PICK Must be logged in to use chart BAC-N Bank of America

(A Top Pick May 13/15. Up 26.98%.) (A Call Option running to 2017.) This is a Leap. It is a story where he thinks you have a year and a half of this option. It is a leveraged play and is like buying a warrant on this bank. He likes the company and thinks they have most of their legal stuff behind them. There will be bumps along the way, which is why he is not interested in owning the stock. If this doubled, he would sell half and keep the rest.


Price:
$17.690
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Yes
2015-08-18 TOP PICK Must be logged in to use chart CNR-T Canadian National R.R.

(Covered Calls. He is playing the last half of the year by taking some option premiums in with he expects that these 3 Top Picks will hold their own or rise. Yield on the total return is pretty attractive. Thinks we could be in a flat market until the end of the year.) He is selling January $82 Calls. As of yesterday the price was $3 with an annual dividend of $1.45. If it rises above $82, you are going to get called away, which would give you a 7% yield in 5 months and a 4.6% yield if it stays where it is. If it declines, it can go all the way down to $76.39 (based on these prices) before you lose any money.


Price:
$79.510
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Yes
2015-08-18 COMMENT Must be logged in to use chart CPG-T Crescent Point Energy Corp

Covered Call to January 2017? This stock is a challenge. It is holding its value at this stage because of its dividend, which is not at all certain. If you are able to sell a covered call on this, you are going to have a very challenging time trying to buy it back, because it is not a very liquid market. If you are selling a Call Option he would probably go a little closer, not January 2017. He has a feeling that the Bid/Ask spread is going to be so wide it is not something you are going to be able to work with.


Price:
$15.790
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 COMMENT Must be logged in to use chart DFN-T Dividend 15 Split Corp.

15 high dividend paying stocks. When thinking about buying any stock, you are buying it for growth on one hand and income on the other. A split corporation takes those 2 components and splits them apart. The growth is called a Capital Share and the dividends are then paid out to the unit holders as preferred shares. The dividend in the preferred share is like “in the money” covered call option where you are getting a yield that is a little higher than the average preferred share in the market today. From a preferred shares standpoint, because these are deep in the money calls, he thinks it is a very good way to have income in your portfolio and a low risk way to do it.


Price:
$11.080
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Unknown
2015-08-18 PAST TOP PICK Must be logged in to use chart DXJ-N Wisdom Tree Japan Hedged Equity

(A Top Pick May 13/15. Up 0.25%.) This is dealing with a quantitative easing in Japan that he thinks will provide some oomph to their economy over the next 12 months. It is equivalent to what the US did in QE 3. This is a significant program which he thinks will have a benefit. The problem you have is that the currency typically declines when the value of the assets go up, because you are printing more money. You want to hedge the currency out, but he didn’t want to hedge it to the Cdn$. He doesn’t like quantitative easing. Thinks we are kicking down the road the damage that was caused by the financial crisis.


Price:
$57.050
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
CAUTIOUS
Owned:
Yes
Showing 1 to 15 of 664 entries
First Previous 1 2 3 4 5 Next Last

No Comments.


You must be logged in to comment.