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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Greetings team 5i,

Beside my core portfolio, I invest about 5% of my money in a “fun” portfolio. It has not been much fun recently. I bought ABBV (at the top) in order to write covered calls and cash-secured uncovered puts.

These calls, written just out-of-the-money and puts written just in-the-money on Mondays with the expiry date on the Friday of the same week, have produced premiums ranging from $US0.81 to $US2.73 which happened this week.

Why is there such a wide range of premium prices and what do the higher premiums suggest?

Thank you.

Milan
Read Answer Asked by Milan on October 30, 2018
Q: I have been investing in the market for 45 years now, many wonderful gains and some 100% loses, example Worldcom(fraud), ask Bernie to confirm. From all my major loses i try to learn something that will help me in the future. I was surprised that you bought into the stock when it was already up a lot and was really pumped by a couple of guests on BNN. My concern with this company was that it was doing nothing new and was competing with major health companies in the US that had market caps in the billions. If this was not some new major new mousetrap, the headwinds for this tiny company were just too risky. Did 5i get caught up in this hype on BNN and the canadian market rise so fast, and in the end, what did 5i learn from this type of investing in the future?
Read Answer Asked by eugene on October 30, 2018
Q: Hi could you please explain why you think healthcare may be a good place to hide if markets stay week? And does this include biotech without revenue or are you referring top the larger drug companies with stable revenue?
Read Answer Asked by Kel on October 29, 2018
Q: Are there fundamental or other reasons why this stock has lost about 20% of its value in the past 5 weeks? Does NAFTA II negatively impact it? I notice the CEO is also president and chairman. Does this pose a risk at this stage, or would do so if the firm got a lot bigger?
I enjoyed the seminar last week. Refreshing !
Read Answer Asked by TOM on October 29, 2018
Q: ABBV share price has slumped from approx. $95 to $82.50 in the past 5 days. Marinol was recently approved by the FDA. ABBV currently has a Forward P/E ratio of 10.72. I understand that the industry's average Forward P/E is 15.85.

What is your view of this stock. Seems like it might be an opportune time to buy and play the marijuana angle from a safe distance.

The Webinar yesterday was great. I hope there are more. Thank you for your services.
Read Answer Asked by Grant on October 26, 2018
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