By Don Fanstone, Member, Kitchener/Waterloo User Group
Jan 27, 2015
Enbridge (ENB). I sold the 10 July 52 Call Options on Monday Jan. 26, at $11.00, originally purchased on Dec. 23/14 at $7.80. These were sold due to holding a 41% gain. I well remember Kevin Crowe, a member of the VectorVest team at the Options course advising to take option profits when they are in hand. In the past I have been dismayed when holding options that were showing a good profit; only to see a significant portion of that profit disappear for reasons more associated with the market than the stock itself. The current market is showing a Confirmed Up today, but with disappointing earnings results south of the border, oil prices indeterminate, and Enbridge having moved up rather sharply, I am happy with the decision to take the profit. I will purchase Call Options again at an attractive entry point.
CNR. CN will report after the market close today. CN has been strong in it’s own right, following on CP’s strong earnings report. They’re increasing their buyback of shares in 2015, and likely to increase the dividend this year. While CN’s report will likely be healthy, much depends on the market. I would be a seller on any sharp rise in the price of the stock.
Inter Pipeline: (IPL). This is a company that I have owned shares for a number of years, and recently purchased 10 July 27 Call Options on Dec. 24 at $5.00. I am of the opinion that all of the pipelines will return to their previous highs.
CGI Group (GIB.A). CGI will report earnings on Wednesday January 28. Earnings are expected to be good. I would be a seller on any sharp rise in the price of the stock.
Insurance Companies: SLF, GWO, ITC. These companies need higher interest rates to realize income on their investment portfolios. Alternately, they have sold off somewhat and may be a candidate for purchase in an unsettled market.
DISCLAIMER: Options trading involves risk and is not suitable for everyone. The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. Options training is strongly recommended before placing any trades. VectorVest offers a basic options course online and occasional intermediate options workshops in Canada each year.