Earlier this morning before the markets opened I discussed the upcoming Canadian Bank stocks earnings and what I was expecting. Today Bank of Montreal started off the earnings and they missed which is exactly what analysts were expecting.

The first quarter profit came in at $1.46 a share, a drop from $1.58 last year for the same period. With adjustments earnings came in at $1.53. Impacted by declining long-term interest rates and a lower Canadian dollar, BMO disappointed investors and the stock plunged below $75 at the start of the day.  Net income still reached $1 billion, a drop from $1.06 billion. In general the consensus was for $1.63 a share.Short interest in BMO stock is at an all-time high.

The volatility being created by the drop in the stock is making a number of trades highly profitable. Here are three trade possibilities. The covered calls trade provides the biggest gain and very good protection.

This is the latest trade and strategy update for Bank of Montreal Stock. This trade is for FullyInformed Canada members.

Bank Of Montreal Trade Alert and Strategy Update – Feb 24 2015

FullyInformed Canada Members can read this Bank of Montreal Stock (BMO) trade alert and strategy outline directly through this link or Canada Members can sign in to the full members site here. Non-members can join here.


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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