The Hershey Company's (HSY) share price has appreciated rapidly in a very short timeframe for no justifiable reason. A Bear Call Spread option strategy can be employed if you think HSY is overvalued and its share price will pullback. Summary HSY released Q1 2019 results on April 25, 2019 and its share price jumped $5.37 [...]
Summary PEP released its Q1 2019 results on April 17, 2019 and the share price jumped to a new 52-week high. I view PEP as richly valued considering it is a mature company in the low growth packaged foods industry. My opinion is that an overall market pullback will occur within the next 6 months. [...]
Summary GS released results April 15, 2019 and its share price took a beating. I am not prepared to bet against GS and am of the opinion there is a reasonable probability the share price will rise over the next few months. I am currently long GS and have initiated a Bull Put Spread to [...]
Nike, Inc. (NKE) is a great company in which I intend to hold shares for the long-term. In early February 2019 I wrote out of the money covered calls on the underlying shares I own. Shares have experienced a roller coaster ride subsequent to early February and are now trading a few cents/share above my [...]
In this Mastercard Incorporated (MA) article I provide an example where, through the use of options, it is possible to come out ahead even if your original call is wrong. In my February 4, 2019 article I provided details on covered call transactions I had initiated; I generated $2.43/share on the MA options. Mastercard Incorporated’s [...]
Summary I am of the opinion there is still more upside to Chevron Corporation’s share price. This conservative option strategy provides you with the opportunity to augment your dividend income while minimizing risk. You own the underlying shares during the term of the option contract so you continue to receive your quarterly dividend. This article [...]
Paychex, Inc. (PAYX) is a high quality company I currently view to be richly valued. This article presents two bearish option strategies of differing degrees of risk which can be employed if you think the share price will pullback yet you do not own the underlying shares. Summary I am of the opinion PAYX shares [...]
This article analyses SmartCentres REIT (SRU.un), a high quality REIT listed on the TSX. Summary SmartCentres’ purpose is to develop, lease, construct, own and manage conveniently located and well designed shopping centres and office buildings. The Trust is diversifying its portfolio and continues to work on opportunities to provide various forms of residential housing, [...]
Paychex, Inc. (PAYX), is a high quality company engaged in the business of providing integrated human capital management solutions for payroll, human resource, retirement, and insurance services for small- to medium-sized businesses. Summary Paychex is a leading provider of integrated human capital management solutions for payroll, human resource, retirement, and insurance services for small- to [...]
Employing out-of-the-money short-term covered calls can help you generate additional income. Based on my analysis I have elected to employ this strategy on some of our 3M and Hershey's shares. In previous articles I have indicated that I fall in the camp of investors of the opinion that a general market pullback is becoming increasingly [...]
