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Blog by Trusha Desai aka Trusha Pandit

  • Writer's pictureTrusha Desai

Accounting, GST, taxes, bookkeeping

Chart courtesy www.cboe.com

As Spring has sprung and cherry blossom vie with magnolia and tulips for predominance, we are at the close of another weekly options trading day on the $DOW. Did we win? Did we lose? Did we leave with pocket change? Or were we simply assigned? It all depends on our underlying, our bid, our strike, and the all-important Greeks. Whether Delta (rate of change of the option price vis-à-vis the underlying’s price) is your prime focus, or Theta (time sensitivity) and Vega (sensitivity to volatility), it is ideal to look at all the Greeks or as many as you are familiar with, and open your position accordingly. And close it pronto, in a hurry, when the underlying price changes dramatically.

Options have a greater risk possibility than any other financial trade. With stocks, if you have a dividend yield of some sort, there is a high probability of a steady quarterly / monthly / annual income. With bonds, there is the possibility of a steady stream of interest income, provided we have not been too greedy and opted for high yield. With both bonds and stocks, there is a chance of capital gain at some point in the lifetime of the investment or investor … whichever expires earlier. For there is not much of a point in a grow-and-hold investment strategy if you are not going to be around to reap the fruit and all your progeny and heirs will be slapped with is estate duty. Please obtain tax advisory services before you invest. We have over ten years of experience in efiling Canadian personal taxes.

This is merely a dip into a vast mine of information, please obtain advice from your financial planner. We do detailed investment analysis and with over fifteen years of international investment experience, are in a position to provide you with a second opinion. We prepare extensive Capital Gain schedules (Schedule 3, T5018) for Canadian personal taxes.#TrushaDesai.com


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  • Writer's pictureTrusha Desai

Accounting, GST, taxes, bookkeeping

Chart courtesy marketwatch.com/investing

For all those social media fanatics who use $TWTR to air their opinions, follow others, or promote their content, it might be a matter of interest that this stock was at its peak (since inception) on January 3rd 2014 at $69.00 while today, though it has increased by 2.08%, stands at $17.16.

If you were of the buy-and-hold ilk, this might have hit you hard. Just as the stock bubble caused in part by the technology sector of 2008 hit many of us. We either rode the storm with hats in hand, or were bowled over, keel a-splinter. A concern about the technology sector is that many stocks do not give dividends. Therefore, if the stock falls, there is no income to shield the unwary investor. If you are covered by an income-generating options strategy, it might assist you temporarily. Otherwise, you take what is thrown your way, sudsy dishwater or not.

As a tweeter who is approaching well-nigh five thousand tweets, I wonder why $TWTR which is well-liked by media and leading political contenders, business owners and celebrities, with a market cap of $12.11 billion, needs a business strategy that could impel the stock upwards. While $FB inches upwards, while $MSFT showers dividends, while $INTC dithers with chips and computer purchasers, $TWTR may need to expand its market share by the well-tried method of mergers and acquisitions. Just a thought.

Please contact your investment adviser for investment recommendations. We are available to do extensive investment analysis and provide a second opinion. We prepare extensive Capital Gain schedules (Schedule 3, T5018) for Canadian personal taxes. #TrushaDesai.com

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  • Writer's pictureTrusha Desai

Accounting, GST, taxes, bookkeeping

Chart courtesy ca.finance.yahoo.com

On a day when $TRP has fallen by 4.13% and trade was halted for sixty minutes, we might do a reality check and see how the stock has performed over the past year vis-à-vis the S & P TSX. Transcanada Corporation’s stock price increased by 22.85% while the $TSX fell by 6.54%. We must remember that the $TSX is a basket of 239 stocks, weighted in financials (37%), energy (18%) and materials (11%). As the constituent stocks perform, so does the $TSX. As the constituent stocks (only one of which is $TRP) express their volatility and emotional hysterical responses of shareholders, so does it.

Why was trade halted? In the good old golden days of stock trading when the bourse had stockbrokers getting apoplectic fits when stocks became volatile, trade was not halted. This permitted a freefall at the whim of an investor’s chilblains. Not anymore. As we have more sophisticated(?) tools that permit us to place trailing stop orders, at the discretion of the stockholder, trade is certain to be halted when there is investor emotion involved or global economic doom predicted.

Perhaps I am of the ilk where I place more stress on investor psychology. Perhaps that is because whether we deny it or not, our inherent fight-and-flight response sets in. Despite eons of being agriculturalists, our hunting instinct strikes and we go in for the kill or flee.

We may only anticipate that trade will not be halted without a moment’s notice when investors depend not only on sophisticated tools but focus on their long-term investment goals which would include dividend growth.

Please contact your investment adviser for recommendations. We are available to provide a second opinion and do investment analysis. We prepare extensive Capital Gain schedules (Schedule 3, T5018) for Canadian personal taxes. #TrushaDesai.com

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