Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Suraj K. Gupta

Clint Calder

Suraj K. Gupta

Occupation

MBA student at Columbia Business School

Story continues below advertisement

Portfolio

Stocks in the technology and financial-services sectors, including Apple Inc., Royal Bank of Canada and Bank of Nova Scotia; short-term trades in stock options.

The investor

Before entering Columbia Business School, Suraj Gupta earned a bachelor degree from the Schulich School of Business and spent four years working at Royal Bank of Canada. He was featured in Me and My Money in December, 2008, near the bottom of the last bear market.

How he invests

In late 2008, Mr. Gupta was a value investor looking for companies trading below their net-asset values. Such investments would "bear a lot of fruit in the long run" if one could cope with "the normal losses in the short term."

This was the right frame of mind. But the market fluctuations took their toll emotionally. Although Mr. Gupta had some big winners, he "ended up exiting most positions within two years due to the huge levels of volatility. …" What were supposed to be long-term investments morphed into momentum and cyclical plays.

Story continues below advertisement

Now, his portfolio has two prongs. The first focuses on short-term trading of call and put options when they are "mispriced" by volatility. See the 'Best move' section below for an example.

The second deals with "medium-term investments." These are shares in companies that "are valuable, usually with some type of decent dividend yield and moderate growth potential." Selling calls on his stocks and other strategies have helped this part of the portfolio "outperform the S&P 500 by 4.6 per cent annually for the past five years."

Best move

In 2012, Mr. Gupta shorted Tesla Motors Inc. stock while "purchasing a call and selling a put at the same strike price." This allowed him to short Tesla stock and ensure he could buy it back "at a slightly lower price," guaranteeing a profit. This arbitrage opportunity existed because the options were mispriced due to the "huge volatility" triggered by a "massive upswing in price."

Worst move

He bought Yellow Pages Ltd. when the dividend yielded 20 per cent. The plan was to collect it for no more than 6 months, then sell. Despite management's stated commitment, it was cut sooner – knocking the stock down even more.

Story continues below advertisement

Advice

As it "can be easy to react emotionally when one's wealth is fluctuating on a day-to-day basis," Mr. Gupta recommends automating buy and sell decisions by placing standing orders to buy or sell whenever a stock reaches a certain price within a given time period.

Want to be in Me and My Money? Contact Larry MacDonald at mccolumn@yahoo.com or his website

Preet Banerjee discusses a simple but effective way of budgeting for holiday spending and avoid going into the red next year
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies