Q: I am thinking that TD is getting quite stretched.using traditional metrics. Do you agree? I am not asking for personal advise, rather I am asking if you think selling a May 135 (covered) call would expire worthless or would probably be called away in two months. In other words, do you think TD stock can appreciate much beyond 135 in the next two months.
5i Research Answer:
Predictions, of course, can be tricky. But considering the world right now, and a delay of rate cuts due to the War, we would not really expect TD to rise close to $7/share in the short time period to expiry.