Investing

Cannabis (Marijuana) Stocks

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  • Dec 4th, 2020 1:44 am
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Jon Lai wrote: How much was it?
$1.30 per option. Funny thing, I'm seeing it went to $1.20 yesterday.

My logic is we'll see new highs for Weed stocks close to October, a mere $1.3k investment (10 options), can yield you pretty decent returns. Small risk, high reward.
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deal_with_singh wrote: $1.30 per option. Funny thing, I'm seeing it went to $1.20 yesterday.

My logic is we'll see new highs for Weed stocks close to October, a mere $1.3k investment (10 options), can yield you pretty decent returns. Small risk, high reward.
Are you worried about dilution? ACB has a history of that and I’d be concerned about that potential risk. Was it significantly cheaper than WEED or APH options?
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Jon Lai wrote: Are you worried about dilution? ACB has a history of that and I’d be concerned about that potential risk. Was it significantly cheaper than WEED or APH options?
I had an order for WEED $35 Strike Jan 19 options, but they're at quite a premium...and haven't executed my order yet. I'm looking for a $7 price on that
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deal_with_singh wrote: I had an order for WEED $35 Strike Jan 19 options, but they're at quite a premium...and haven't executed my order yet. I'm looking for a $7 price on that
due to the time to expiry the $35 call option is pricey & like most Canadian options the bid/ask spread is too wide & in the case of WEED the implied volatility (IV) is high compared to many other stocks/options

with the stock at approx $38 the last sale of the $35 call strike price was $8.35 for Jan 2019 expiry, so how will you get your $7 price?

even the earlier expiry $35 strike price in October & November are still pricey, both as you know drop in price with time decay

so what about the Jan $20 strike price that you can get with zero option premium, just the difference between the stock price of $38 & the $20 strike price?

This is cheaper than buying the stock, in fact half price & as you know deep in the money options that for every $1 increase in the stock price the option price goes up by the same amount

but, if you want to buy options that have a high implied volatility & believe you can 'hit the mark', then go ahead - what you have against you is time decay as well as the bid/ask spread, even if you go mid-price point

have you considered an option spread, maybe buy the Jan $20 for $18.50 & sell the jan $38 for $6.50

the spread is $18, the money at risk is $18.50 - $6.50 = $12. your downside/break even is when the stock at $32

time decay on your side if the stock stays as it is or goes up, you have the chance to make $6.50/$12 = 54.16% in approx 7 mths or 92.85% annualized

good luck
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Jun 9, 2015
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deal_with_singh wrote: $1.30 per option. Funny thing, I'm seeing it went to $1.20 yesterday.

My logic is we'll see new highs for Weed stocks close to October, a mere $1.3k investment (10 options), can yield you pretty decent returns. Small risk, high reward.
good call, ........of the "big 3", acb has the biggest potential.........
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Apr 18, 2010
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deal_with_singh wrote: ACB Call Options for $9 strike expiring Jan are damn cheap! Loaded up a couple days ago!
Still pricey
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porticoman wrote: due to the time to expiry the $35 call option is pricey & like most Canadian options the bid/ask spread is too wide & in the case of WEED the implied volatility (IV) is high compared to many other stocks/options

with the stock at approx $38 the last sale of the $35 call strike price was $8.35 for Jan 2019 expiry, so how will you get your $7 price?

even the earlier expiry $35 strike price in October & November are still pricey, both as you know drop in price with time decay

so what about the Jan $20 strike price that you can get with zero option premium, just the difference between the stock price of $38 & the $20 strike price?

This is cheaper than buying the stock, in fact half price & as you know deep in the money options that for every $1 increase in the stock price the option price goes up by the same amount

but, if you want to buy options that have a high implied volatility & believe you can 'hit the mark', then go ahead - what you have against you is time decay as well as the bid/ask spread, even if you go mid-price point

have you considered an option spread, maybe buy the Jan $20 for $18.50 & sell the jan $38 for $6.50

the spread is $18, the money at risk is $18.50 - $6.50 = $12. your downside/break even is when the stock at $32

time decay on your side if the stock stays as it is or goes up, you have the chance to make $6.50/$12 = 54.16% in approx 7 mths or 92.85% annualized

good luck
Both ACB and WEED I placed orders for when WEED announced earnings and stock crashed. Stock was at about low $36's, and options had a Bid of $7.10 and Ask of $7.50 , At the same time, ACB Options had a $1.50 ask, $1.30 bid, I went in at $1.30.

ACB Executed, WEED had no sales below $8 that day.

I'm going to be honest, I'm not active in the options world, but both of these seemed attractive.

With your options spread, you limit your downside, but you also limit the upside. Max gain is $6.50, max loss is $12. Although overall seems like a great strategy, just due to uncertainty, sky seems to be the limit with weed plays.
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Meanwhile in the US

CGC $29.24*
-0.0466
-0.16%
*Real-Time - data as of 7/2/2018 9:39:41 AM

CRON $6.67*
+0.1501
+2.3%
*Real-Time - data as of 7/2/2018 9:40:05 AM

-----------------------

And anybody following BTC??

$6,569.26
+230.22 (+3.6318%)
As of 2:40PM BST

BTC View fronm Coindesk

The sell-off from the May 21 high of $9,990 seems to have ended. However, only a bullish falling channel breakout would confirm a short-term bearish-to-bullish trend change.
Should BTC cross the falling channel resistance of $6,450, then resistance lined up at $6,848 (June 19 high) and $7,000 (psychological hurdle) will likely come into play.
On the downside, a break below $6,000 would kill the odds of a short-term bullish reversal.
A daily close below $5,755 would revive the bearish outlook and expose support at $5,400 (Nov. 12 low).
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TD Bank adds 16 more cannabis stocks to approved list
https://outline.com/LCfxCy

JULY 01, 2018
The bank made an unusual move in April to restrict how its investment advisers could talk to clients about the burgeoning industry, banning staff from recommending all but three Canadian pot stocks. At the time, TD said it approved medical marijuana growers Canopy Growth Corp., Emerald Health Therapeutics Inc. and Emblem Corp. because they don’t have any exposure to the United States, where the drug is prohibited under federal law but legal in certain states.

TD has been reviewing the space and is now adding 16 more cannabis firms to its approved list of equities, including Cronos Group Inc. and CannTrust Holdings Inc., according to a June 27 e-mail sent to advisers. Five of these companies are listed on the Toronto Stock Exchange and 11 are listed on the TSX Venture Exchange.

In order to be included on TD’s “eligible for solicitation list,” an issuer must be listed on the TSX or the TSXV and can’t have any prohibited U.S. touchpoints as determined by the bank,TD spokesman Paolo Pasquini said.

In October, TMX Group Ltd., the largest operator of stock markets in Canada, clarified its policy to restrict any cannabis company violating U.S. federal law from listing on the TSX or TSXV. The markets conducted a review of their issuers, forcing those breaching the policy to offload their U.S. assets to keep their listing. TMX has more than two dozen pot stocks listed on the TSX and TSXV, including Aurora Cannabis Inc. and Aphria Inc.

But advisers in the TD Wealth Private Investment Advice (PIA) network are still not permitted to recommend shares of Aurora and Aphria, two of Canada’s largest cannabis growers, nor the four Canadian marijuana exchange-traded funds (ETFs).

Aurora said in June that it was spinning out its U.S. assets and applying to list that company – named Australis Capital Inc. – on the Canadian Securities Exchange, where looser listing rules than the bigger TSX have seen it become home for many pot companies. Australis owns land in the state of Washington, where cannabis is legal for medical and recreational use, and has an interest in a Michigan company that has applied with the state to become a fully licensed medical grower.

Aphria has begun offloading its U.S. holdings, divesting its stake in an Arizona grower in February and selling a quarter of its equity stake in Florida’s Liberty Health Sciences Inc. The rest of its Liberty shares are being held in escrow and will be sold to the same buyers once a lock-up period ends and they become free trading.

Canada’s largest pot ETF – the Horizons Marijuana Life Sciences Index ETF (HMMJ) – has more than $796-million in assets under management and aims to track the North American Marijuana Index. HMMJ only includes 40 of the 49 stocks (including Aurora and Aphria) as it does not include those companies primarily focused on serving the medical or recreational marijuana market in the United States. Despite the fund listing this constraint, it does not appear on TD’s recommendation list.

TD would not answer specific questions about the approval process for its list, but Mr. Pasquini said “the cannabis industry is complex and evolving rapidly. As a result, TD has policies in place to manage the advice we provide to clients about investing in companies in this sector. Our most recent update reflects our ongoing evaluation of this emerging market. We expect our views will continue to evolve and develop with the industry.”

TD Wealth PIA serves clients with more than $750,000 in investable assets. The unit has more than 740 advisers, of which 200 are discretionary portfolio managers, meaning their clients defer individual investment decisions to them.

If a PIA client tells his or her adviser to buy shares of any marijuana firm or ETF, the adviser is allowed to make the trade. But if a client says they’re interested in the marijuana sector as a possible investment, a TD adviser can only recommend a stock that has been added to the approved list.

Last month, Parliament lifted the 95-year-old prohibition on cannabis and regulated the non-medical use of the drug, freeing millions of adults to use marijuana when the law comes into effect on Oct. 17.

As with any emerging sector, investments in legal marijuana businesses are risky. Most of the companies are startups and have booked little to no revenue. Yet, many investors are upbeat about their prospects, pouring millions into the sector despite the many unknowns – all in the hopes of cashing in on the green rush as countries around the world legalize and regulate cannabis.

Emerald Health Therapeutics -EMH

Tetra Bio-Pharma Inc. -TBP

Supreme Cannabis Co. Inc. -FIRE

Newstrike Resources Ltd. -HIP

Harvest One Cannabis Inc. -HVT

----------------------

Full list:

Canopy Growth Corp. -WEED

Emblem Corp.-EMC

Emerald Health Therapeutics -EMH

Cronos Group Inc. -CRON

Natural Splendid Ent Ltd. -NSP

Weedmd Inc. – WMD

Tetra Bio-Pharma Inc. -TBP

Supreme Cannabis Co. Inc. -FIRE

Medreleaf Corp. -LEAF

Hydropothecary Corp.-HEXO

Abcann Global Corp.-ABCN

Newstrike Resources Ltd. - HIP

ICC Labs Inc.-ICC

Harvest One Cannabis Inc. -HVT

Delta 9 Cannabis Inc. -NINE

National Access Cannabis Corp. -Meta

CBD With Research Corp. -CBM / H

Neptune Technologies & Bioress -NEPT

Canntrust Holdings Inc. -TRST
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lilmikey wrote: Please be good news
Either a buyout or Satipharm import license, place your bets!
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Hahaha and I was so close to my .75 average down price
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Dec 31, 2015
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Ugh wtf is APH doing? Hopefully they get a deal similar to WEED but with Diageo. Would be huge.

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