Tag archives: Options

Introducing the Optionable Portfolios

Last update on Oct. 26, 2015.

Protect house

Image credit: ptnphoto / Shutterstock.com

 

A couple of weeks ago, some members requested the creation of a set of fully optionable portfolios. These portfolios consist exclusively of stocks and ETFs for which you can buy associated options. To learn more about ETFs, please read my free book.

Today, I'm happy to announce the creation of the “Optionable Portfolios” for MoneyGeek’s regular members. By implementing one of these portfolios, an investor is effectively buying insurance against steep losses on those portfolios. In this article, I will explain how someone can set up a portfolio so as to protect against ...

Continue reading

Should You Buy The BMO Covered Call Canadian Banks ETF? (ZWB)

Last update on July 15, 2014.

 

The BMO Covered Call Canadian Banks ETF (Ticker ZWB) is one of the more intriguing ETFs in Canada. Like the simpler BMO S&P/TSX Equal Weight Banks Index ETF (Ticker ZEB), ZWB divides most of its money equally among the major Canadian banks. In fact, a substantial portion of ZWB is actually invested in ZEB.

However, compared to ZEB, ZWB sports a higher dividend yield (5.7% vs. 3.8% for ZEB) at the cost of slightly higher management expense ratios (0.65% vs. 0.55% for ZEB). In this day and age when dividend investing is all the rage ...

Continue reading

Put Options Explained Using Examples

Last update on March 27, 2014.

Fire insurance

Fire insurance: You can think of put options as a form of insurance.

 

In the last episode of My TFSA Update, I said that I plan on buying options in the coming months. Then 2 weeks ago, I explained what call options are. In this post, I will explain another variety of options called 'put options'. As I did last time, I'll not only explain what they are, but how to think about such options.

But before I begin, I want to again give a big word of caution. Options are complex financial instruments. Using options is kind ...

Continue reading

Call Options Explained Using Examples

Last update on March 27, 2014.

Leverage

Leverage: Buying call options is like using leverage (i.e. using debt) to buy stocks, but with one very important twist

 

In the last episode of My TFSA Update, I said that I plan on buying options in the coming months. In this post, I will explain one such variety of options, and that's call options. But perhaps more importantly, I'll explain how to think about call options.

But before I begin, I want to give a big word of caution. Options are complex financial instruments. Using options is kind of like using dynamite - useful, but dangerous ...

Continue reading

How Market-Linked GICs Work

Last update on Sept. 30, 2013.

Have your cake and eat it too

Have your cake and eat it too: Is it possible to enjoy the safety of bonds AND make money when stocks go up?

 

Suppose you're a conservative investor. You hate the thought of losing money, and that's why you gravitate towards bonds and GICs.

However, recently, bonds haven't been doing so hot.

At the same time, you're looking over enviously at stock market investors, who are enjoying much better returns. But still, that risk averse side of you is afraid to take the plunge into the stock market.

If only you could have it both ...

Continue reading



Web Analytics