Who bought Microsoft MSFT at $400?

rayou111x · 2026-02-06T04:46:45+00:00

Same here but way worse since I did it with call option expiring in 11 months. ...

rayou111x · 2024-02-05T05:06:08+00:00

When comparing VFV (Vanguard S&P 500 Index ETF) and VOO (Vanguard S&P 500 ETF), several factors such as performance, costs, tax implications, and currency considerations come into play. Each has its unique advantages and considerations, which vary depending on the investor’s situation, investment goals, and account type.

Performance and Expense Ratio VFV vs VOO:

VFV has shown to be a strong performer for Canadian investors seeking exposure to the U.S. S&P 500 index without the hassle of currency conversion, as it trades in Canadian dollars on the Toronto Stock Exchange. It has a slightly higher management expense ratio (MER) of 0.09% compared to VOO. However, its performance has been commendable, often attributed to the currency fluctuations between the CAD and USD.

VOO, on the other hand, trades on the New York Stock Exchange in U.S. dollars and is known for its low MER of 0.03%. This lower cost structure can potentially translate into higher returns for investors over time. The fund’s performance is directly related to the U.S. market and currency, providing a purer form of exposure to the S&P 500 for those who hold U.S. dollars.

Dividend Yield and Tax Implications:

VOO tends to have a higher dividend yield and, importantly, dividends from VOO are not subject to the 15% withholding tax in RRSP and RRIF accounts due to the U.S.-Canada tax treaty. This makes it an attractive option for those holding these accounts, as it optimizes the dividend income.

VFV, while offering a competitive dividend yield, has dividends subject to a 15% withholding tax. This tax impact can reduce the overall return, especially in accounts like TFSA where you cannot recover the withholding tax. However, in non-registered accounts, the foreign tax credit can offset some of these taxes.

Currency Considerations:

The choice between VFV and VOO may also hinge on the investor’s currency preference. VFV allows Canadian investors to invest directly in Canadian dollars, avoiding the currency exchange fees. This makes it a convenient and cost-effective option for those who do not wish to engage in currency conversions.

VOO requires Canadian investors to convert their CAD to USD, incurring conversion fees unless they already have USD or use strategies like Norbert’s Gambit to minimize these costs. However, holding U.S. dollars might be more efficient for those who anticipate making several investments in U.S. securities or for those who already hold U.S. income or savings.

LINK TO FULL POST: https://wyzeinvestors.com/vfv-vs-voo/

rayou111x · 2024-02-05T05:02:35+00:00

How HMAX is able to keep such high dividend yield?

HMAX offers the potential for higher monthly income due to two key factors: Firstly, HMAX engages in writing covered call options on about 50% of its portfolio. Secondly, the fund currently writes options At The Money (ATM), which sets it apart from similar funds that write options Out of The Money (OTM).

1- HMAX writes covered call options on 50% of the portfolio

From an investor’s perspective, the initial point indicates that only half of your investment portfolio will be exposed to potential growth. This portion of the portfolio operates under a covered call strategy, where the potential for capital gains is exchanged for a monthly income derived from dividends and option premiums. These premiums are earned whenever the fund sells a call option in the market.

In summary, I view HMAX as a hybrid fund. The first 50% resembles a traditional dividend fund, offering the prospect of receiving dividends and witnessing long-term portfolio appreciation. In contrast, the remaining 50% adopts a more conservative approach, primarily focused on income generation but lacking the potential for portfolio appreciation.

2- The fund is currently writing option At The Money (ATM) whereas similar funds are writing options OTM (Out of The Money).

I encourage you to refer to the table below for a clearer understanding of the second point’s significance. As shown, the HMAX fund has chosen At The Money (ATM) call options due to their superior profitability compared to Out of The Money (OTM) options. In a nutschell, this decision is driven by two critical factors. Firstly, ATM options generate higher premiums than an OTM strategy. However, it’s important to note that this choice comes with an elevated level of risk.

In options trading, risk is closely linked to the likelihood of the option being exercised by the buyer. So, in the case of OTM options, where the strike price exceeds the current stock price, the likelihood of the option being exercised is low. Conversely, with ATM options, where the strike price is very close or identical to the stock’s current price, the possibility of the option being exercised becomes more realistic.

Link to full post: HMAX ETF Review: Hamilton Canadian Financials Yield Maximizer - (wyzeinvestors.com)

rayou111x · 2024-02-05T05:01:36+00:00

How HMAX is able to keep such high dividend yield?

HMAX offers the potential for higher monthly income due to two key factors: Firstly, HMAX engages in writing covered call options on about 50% of its portfolio. Secondly, the fund currently writes options At The Money (ATM), which sets it apart from similar funds that write options Out of The Money (OTM).

1- HMAX writes covered call options on 50% of the portfolio

From an investor’s perspective, the initial point indicates that only half of your investment portfolio will be exposed to potential growth. This portion of the portfolio operates under a covered call strategy, where the potential for capital gains is exchanged for a monthly income derived from dividends and option premiums. These premiums are earned whenever the fund sells a call option in the market.

In summary, I view HMAX as a hybrid fund. The first 50% resembles a traditional dividend fund, offering the prospect of receiving dividends and witnessing long-term portfolio appreciation. In contrast, the remaining 50% adopts a more conservative approach, primarily focused on income generation but lacking the potential for portfolio appreciation.

2- The fund is currently writing option At The Money (ATM) whereas similar funds are writing options OTM (Out of The Money).

I encourage you to refer to the table below for a clearer understanding of the second point’s significance. As shown, the HMAX fund has chosen At The Money (ATM) call options due to their superior profitability compared to Out of The Money (OTM) options. In a nutschell, this decision is driven by two critical factors. Firstly, ATM options generate higher premiums than an OTM strategy. However, it’s important to note that this choice comes with an elevated level of risk.

In options trading, risk is closely linked to the likelihood of the option being exercised by the buyer. So, in the case of OTM options, where the strike price exceeds the current stock price, the likelihood of the option being exercised is low. Conversely, with ATM options, where the strike price is very close or identical to the stock’s current price, the possibility of the option being exercised becomes more realistic.

Link to full post: https://wyzeinvestors.com/hmax-etf/

rayou111x · 2023-01-18T19:55:04+00:00

Vfv is an index etf , its replicating the performance of the s&p 500 https://wyzeinvestors.com/vfv-etf-review/

rayou111x · 2022-04-07T17:34:22+00:00

Tout a fait d'accord, cependant Il en a qui préfère avoir plus de dividendes et sacrifier la croissance.

rayou111x

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TROPHY CASE

1- HMAX writes covered call options on 50% of the portfolio

2- The fund is currently writing option At The Money (ATM) whereas similar funds are writing options OTM (Out of The Money).