Resource stocks have not done well this past month, well year, and most of last year, but especially the past month.
so have done some recent trades, most of these have been done with options, or used options to hedge the positions.
1. CF TSX Canacord Financial stopped out at $7 cdn. it just plummeted the last two weeks, now trades below 5.50. yield 3.80% should give support.
I thought that the start of the year, resource ipos could improve since 2012 since that was a terrible year.
well this year is far worse, if you are a resource stock wanting to get money, good luck....
well run, trading below nav, and yield, still will wait for a recovery, look at it if it goes on a run over 6.50.
2. ABX Barrick gold sold most of the position 90% last month at 30.25-30.50 cdn. now at 19 cdn., I own a small amount not sure why I stil do, but have options covered, and most uncovered at 30-36 cdn. over one to three months.
do not ussually own ABX, and terrible long term holding, in ten years made nothing, so this is for trading. management has been terrible over spending on the chile argentina mine, and overspending on a copper prospect in Africa. how to blow 10 billion.
still stock is cheap, own a small amount. will sell calls against them.
CNQ Canadian naturual resources, still have the postition and belive most cdn. oils are cheap, yields 1.69%. also has good exposure to nat. gas, if it goes higher. do not expect anything from the stock over the summer. so will sell call options covered and uncovered. believe cnq will not rally more than 10%, over the next three months.
TCk.b tck the stock is good value, but coal for stell is unloved and copper is probably flat to down, thought It would do better, production is growing this year and maybe next, however demand has not kept up. copper will have its day but not over the next 3-6 months.
good yield and not a bad play saying that sold half of the positon and replaced it with selling put options at lower levels. have these offset by calls.
yri Yamana gold. still hold the positon, they have growth, more trouble in argentina and mexico but still cheap, will offset calls at 15-16. but believe cheap at this price. like it much better than abx.
so have done some recent trades, most of these have been done with options, or used options to hedge the positions.
1. CF TSX Canacord Financial stopped out at $7 cdn. it just plummeted the last two weeks, now trades below 5.50. yield 3.80% should give support.
I thought that the start of the year, resource ipos could improve since 2012 since that was a terrible year.
well this year is far worse, if you are a resource stock wanting to get money, good luck....
well run, trading below nav, and yield, still will wait for a recovery, look at it if it goes on a run over 6.50.
2. ABX Barrick gold sold most of the position 90% last month at 30.25-30.50 cdn. now at 19 cdn., I own a small amount not sure why I stil do, but have options covered, and most uncovered at 30-36 cdn. over one to three months.
do not ussually own ABX, and terrible long term holding, in ten years made nothing, so this is for trading. management has been terrible over spending on the chile argentina mine, and overspending on a copper prospect in Africa. how to blow 10 billion.
still stock is cheap, own a small amount. will sell calls against them.
CNQ Canadian naturual resources, still have the postition and belive most cdn. oils are cheap, yields 1.69%. also has good exposure to nat. gas, if it goes higher. do not expect anything from the stock over the summer. so will sell call options covered and uncovered. believe cnq will not rally more than 10%, over the next three months.
TCk.b tck the stock is good value, but coal for stell is unloved and copper is probably flat to down, thought It would do better, production is growing this year and maybe next, however demand has not kept up. copper will have its day but not over the next 3-6 months.
good yield and not a bad play saying that sold half of the positon and replaced it with selling put options at lower levels. have these offset by calls.
yri Yamana gold. still hold the positon, they have growth, more trouble in argentina and mexico but still cheap, will offset calls at 15-16. but believe cheap at this price. like it much better than abx.
