Peyto Exploration & Development Corp T.PEY

With heavy

[shenty46]

With heavy heart, i sold 18000 peyto today with average price of 10.75, as i need money to close down my mortgage for my pre construction home bought last year. my position in peyto is now 32000 physical shares and 45000 shares(450options).

[mckayk3]

I'm sorry for your loss

[shenty46]

It is a big loss as i expect it to touch 40-50 dollars in next 2 years

[TerribleEng]

I am suprised you just didn't go the CMHC route. The divvy on the stock would pay your premium in a year. Other option would have been pulling cash out of your account and paying margin interest. With IB the rates are around 1% interest. With with the 2023 Winter curve moving up to $5CAD/GJ... PEY has the opportunity to cash in on the current run. If they start layering on winter hedges, they

[Ozhoks]

This is what sustainable dividents for.  According to marketing report, if I am not mistaken, PEYTO fixed price sales is only 2.75 cad/gj in average for 2022. Comparing this to todays AECO curve average for 2022, around 4.35 cad/gj, it is pretty bad. Considering 2/3 of 2022 production is fixed to that number,  Peyto may have an opportunity to realize +/- 3 cad/gj for 2022

[TerribleEng]

Sorry I should been more clear. With the Winter 2023 pricing popping substantially this week, and Peyto 50% unhedged for that period, they have the opportunity to realize $4/GJ in Q4/Q1 at the current strip. As you mentioned the rest of 2023 looks dismal, and this ends in March. I was just commenting that it's Peyto's first real opportunity to participate in this energy crisis and make the

[PabloLafortune]

Terribleeng if you're saying that Peyto should hedge more NOW for that Winter 2023 period, I agree.  If future prices are popping, there's an underlying reason for that. It doesn't necessarily mean that spot prices will go even higher when the time comes (ie winter 2023). Could be the other way around. To me, high future prices means time for producers to hedge more. I think

[shenty46]

Hi terrible English, the other reason for myself selling apart from my mortgage need was, I don't think peyto outperforming for at least next 6 months, and would be rangebound between 9-12 dollars range 

[houbahop]

Interesting, that rangebound trading expectation for the next 6 months. And you just bought 450 calls contracts?

[MikeySwoosh]

I was just gonna mention that. If that's the logic, sell some nearer month OTM calls to cover the decay and missed dividends.

[shenty46]

And those calls are December 22.

[houbahop]

Let's say you buy one Dec 22 Call with a $8 strike price. Today this option trades at $3.30 while Peyto shares trade at $10.50. There is $2.50 of intrinsic value (in the money) and $0.80 of time value. This time value is based on Peyto shares expected volatility and time until the option's expiration. If you expect Peyto shares to remain rangebound between $9 and $12 for 6 months and the

[auagntungsten]

Keep him Honest.

[Yasch22]

This post has been removed in accordance with Community Policy

[shenty46]

Sorry I misspelled terribleeng name.

[MagicPinstripes]

Yasch, The current dividend is certainly is a difficult thing to give up - especially if you bought in back in March 2020. That's about a 50% yield. Can't think of too many investments that'll return that kind of cash on an annual basis. Even at 5%, you're still coming away with far more than anything a 'traditional' bank would be able to offer you. Shenty

[Boulter]

I had a similar feeling when I sold down to buy my current rural home while choosing to retain my Ottawa home as a rental.  It was a short lived feeling.  I sold 200 of my 300 Nortel shares at $85.  The last 100 of course went to zero.

[SlickRick40]

Shenty this dribble is purely public masterbation at its finest. Does your boss let you take poo breaks during meetings or are you required to announce those too?

[PlutusofCrete]

LOL poo breaks....I laughed out loud while on a work zoom call.  SlickRick40 - (2/7/2022 8:58:47 AM) RE: With heavy shenty46 wrote:With heavy heart, i sold 18000 peyto today with average price of 10.75, as i need money to close down my mortgage for my pre construction home bought last year. my position in peyto is now 32000 physical shares and 45000 shares(450options).

[RusticHit]

Lol you already saved 18000 dolla man congrats if you have sold 32000 more you would have saved fortune ,these stocks were at the Top last week as oil will start down turn and these stocks would be down 40-50% in no time