Investment Q&A

Q: Everyone, if you had to list five (or more) stats / data / verbiage that would convince you to buy a stock what would they be? Clayton

Q: Good morning 5i
I would like your advice on a covered call options strategy. To date I have been selling covered call options on stocks I already own, such as Nvidia, Meta, Google, Shopify, etc. I sell mostly three week to monthly expiry dates. I usual tend to buy back and roll out if the market price surpasses my strike price. ( which I have been doing more frequently, recently).

All of these stocks have very high embedded capital gains and i wouldn’t want to pay the tax if called away. So far buying back and rolling out has worked well, though.

But, I am looking at other strategies, such as buying two or three good stocks, such as amd , palientir, etc specifically to sell call options. Here being called away is not a problem, as one would have little capital gains tax and , say in the case of amd, wouldn’t miss losing it, since I hold Nvidia.

Another possibility is to sell call options on a relatively volatile etf, such as QQQ.

I highly appreciate your advice, as I do in all investing questions

Q: Received a notice regarding TD Mutual funds class action on trailing commissions paid to discount brokers.
Is this worth pursuing?
Thanks

Richard

Q: Hi Guys,

My mortgage is up in 22 months, I have enough cash to pay it off. Is 22 months enough time to invest it in some secure dividend paying stocks like ENB, H or TD or just invest in a 4% GIC.

Thanks

Jim

Q: As a new member to 5I I am wanting to get the most out of this great resource! If I had only 30 minutes a day for this site, how do you recommend I use it to take full advantage of everything you provide?

Thanks! Kevin

Q: I would like to buy a few US stocks but do not want to open a US account. Therefore, I believe my options are CDRs or purchase a US stock in a CDN account. Which is a better option in your opinion?

Carl

Q: Could you please comment on the recent announcement that Vitalhub "filed and obtained a receipt for a preliminary short form base shelf prospectus with the securities regulatory authorities in the provinces of Alberta, British Columbia, and Ontario"?

What does that mean for shareholders? Do you view this as a positive or negative? How does this affect your sentiment towards the company and it's near term share price?
Thank you.

Q: Rebalancing my portfolio vs risk for a young retired.
My portfolio consist in 23% bond ETFs, 37% US, 11% International, no emerging market and 29% Canada. I am ready to take on some EEM. What would be your allocation of funds from here? All current assets would trigger capital gains excepts for bunds which I wouldn't touch and may raise the amount over time. I may take 6 months to do part of the allocation due to capital gains tax hit.
Thank you for your precious advise over the years you have been a tremendous help to grow my portfolio and help navigate dangerous times.

Yves

Q: When looking at a company one usually finds estimated earnings for the next four quarters. I am wondering who compiles these numbers. Cheers

Q: Good morning, In a recent question I inquired about brokers that held U.S. stocks in U.S. funds in a RRIF accounts . I asked this question, as much to my surprise Wealthsimple does not hold U.S. stocks in U.S. funds in a RRIF account. They are held in CAD. I am looking at Qtrade and TD invest for this account. Is there a preference? Open to any ideas. Thank you.

Q: Curious. Now that you have answered tens of thousands of questions submitted by your members, what are your three least favorite questions to answer?

Don't publish the answer unless you want to.

Thanks.

Q: When can we expect the next investing and economic report card and if there was a recent one ,where can we find it?

Q: I have heard some commentators talk about the possibility that the US could institute capital controls. How realistic do you feel this is?

For Canadian investors, how do we protect ourselves against this possibility?

Thank you again for this excellent service.

Q: I rec'd a circular regarding BNT in which they want to pass a resolution referred to as "Return of Capital Resolution" and another referred to as "Share Issuance Transactions". Would you please explain these in reasonably simple language for me.
Thanks, Murray

Q: Hi 5i
Thanks for your update.... I dont really understand the mechanics of how a deal like this unfolds....24 M share + another potential 4M as you said thats a lots of shares, especially compared to daily trading volume... I imagine this deal would not be feasible if only listed on TSX...

ie: So Who takes these shares, and then how do they sell their shares, are there conditions to meet and what determines the purchase prices for these buyers?
thx

Q: Hi group what the suggested strategy to deal with proposed increase in withholding tax . I am hesitant to buy any more us stocks in my non registered +TSFA accounts ...maybe even sell some? i know we should wait until the prosed increase happens ...looking at US verses Canada stocks in general. Presently CAD are doing better so selling and replacing with CAD stocks may just work out just fine ...thoughts

Q: If you submit a trade with a stop loss, can other people in the market see that stop loss. Is it true that someone can trade the stock down, pick out the stop loss and then the stock price goes back up? How does that work?

Q: Re Fannie Mae FNMA - not in your system- but number one on the 5i blog's Rockets and Duds weekly list and others that seem to be exclusively US names, I would have more interest in following this feature if it had Canadian names, which I thought was 5i's expertise.

Q: Is there a "safe" way for Canadians to invest in Chinese companies either with ADRs or ETFs?

Do you have any specific recommendations?

Q: Follow up to the last GLXY answer. Could you explain the transfer process in more detail please.
I don't understand the process. Are the Canadian shares going to be sold then repurchased on US side? I hold in my DYI TFSA and RRSP accounts with other US holdings.
Thank you
Jeff