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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by aclcmcon May 13, 2011 4:08pm
201 Views
Post# 18574549

RE: RE: RE: BMO income ETF

RE: RE: RE: BMO income ETFSleepingMonday: I never thought I'd be in a position to defend Lassie, but geez, what does that last post of yours mean? Buying into a trading unit (ZWB) that has, at its core, the purchase of the top six Canadian financials and then writing covered calls against those positions, is not shorting at all. What it means is this: ZWB owns long positions in the six big banks. It takes dividends from them. It enhances its return by selling options, likely out-of-the-money options, against those positions. In all likelihood, if one of those banks goes on a share-price run, ZWB will likely buy back its option position and then "roll up" into one with a higher strike price. That permits ZWB to not have the stock "called away." This is not shorting – it's a very conservative, very well accepted, long play that pays out a nice dividend, a reflection of the banks' own dividends, plus the income gained from the covered call writes. aclcmc
Bullboard Posts