recent posts

Using call options as a hedge
May 16, 2018
Protection

Using call options as a hedge

Martin Noël

As can be seen in the following chart, the share price of ONEX Corporation (ONEX) has been weak enough to suggest that some caution may be necessary. The Relative Strength Index (RSI), which was recently in oversold territory, is trending downward. The same is true of the stochastic oscillator (%K). Although the scope of the...

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2 weeks ago
Beginner’s guide to options trading
May 10, 2018
Concepts

Beginner’s guide to options trading

Richard Ho

If you’ve been trading stocks, you should have a pretty good understanding of the mechanics of buying and selling. Getting started with options trading is fairly simple. Here are a few things to know to get started.   Step 1: Setting up an options account with your broker The options account can be in a margin or...

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2 weeks ago
Tips for Trading Your First Option
May 02, 2018
Concepts

Tips for Trading Your First Option

Tony Zhang

Learning how to trade options takes time and patience. Luckily, there are plenty of courses and tools to help investors through this process. Selling covered calls for income is a great way to dip your toes into the options market, before moving onto buying calls and puts. We will examine these 2 primary strategies that are...

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4 weeks ago
A Bullish Position to Optimize Risk-Reward
April 25, 2018
Bullish Outlook

A Bullish Position to Optimize Risk-Reward

Martin Noël

As the following graph shows, shares in Royal Bank of Canada (RY) veered into correction territory after peaking at $108.52 on January 22, 2018. At the current price of $97.98, the security is down by over 9.7%. With the RSI (Relative Strength Index) indicator on the rise and the stochastic oscillator (%K) indicating that the...

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1 month ago
Option Trading Mistakes to Avoid
April 25, 2018
Concepts

Option Trading Mistakes to Avoid

Jason Ayres

Trading and investing for ones self is challenging at best, let alone when you are making mistakes that could have been avoided. I am of course speaking from experience as I have paid my share of tuition thanks to falling victim to a few of the following blunders. Using an all-purpose strategy Options can be used under a...

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1 month ago
Is Gold Breaking Out of its 4-Year Consolidation?
April 24, 2018
Volatility

Is Gold Breaking Out of its 4-Year Consolidation?

Patrick Ceresna

Over the last few years I have not been shy about my conviction that the gold bear market has ended.  There is no denying that the December 2015 lows for gold bullion at $1050.00 are now history, but the enthusiasm for the shiny metal has been left for the diehards as most of the speculative money has turned its attention to...

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1 month ago
The Da Vinci Code: The hidden messages within the option chains
April 20, 2018
Concepts

The Da Vinci Code: The hidden messages within the option chains

Richard Ho

Traders are very opinionated and have their own view on everything. This is why we have a market of buyers and sellers. Otherwise, everyone would be on the same side of the trade. This behaviour is built over time from experience and knowledge. You can do it too. For example, you are able to tell if the stock is trending up or...

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1 month ago
Taking Advantage of Time Decay With a Mixed Ratio Spread
April 16, 2018
Neutral Outlook

Taking Advantage of Time Decay With a Mixed Ratio Spread

Martin Noël

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock has stayed within a range of $215 to $240 since October 2017 and $190 to $240 over the last 12 months. While the price could fall back down to $190, equal to a drop of nearly $35 from the current level ($224.16), we also believe that a...

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1 month ago