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Harvesting Premium By Shorting Out-of-the-money Calls
July 30, 2020
Bearish Outlook

Harvesting Premium By Shorting Out-of-the-money Calls

Patrick Ceresna

Have you ever been in the fortunate position of holding a stock that had rallied a long way, but you were concerned it had gone too far too fast, yet you did not want to sell your position? Or, have you ever thought that the market would go sideways for a while, and you did not expect your stocks to rally? Maybe you have seen...

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6 days ago
August –  Educational Events
July 29, 2020
Concepts

August – Educational Events

Montréal Exchange

August 10, 2020 Webinar – Live Market Analysis Time : 12:00 p.m. (ET) Speaker : Tony Zhang Language: English Where : Online More information here.     August 12, 2020 Webinar – Put – Call Parity and synthetics Time : 4:3o p.m. (ET) Speaker : OIC instructor Language: English Where : Online More...

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7 days ago
A Twist on Risk Reversals
July 10, 2020
Bullish Outlook

A Twist on Risk Reversals

Patrick Ceresna

The past few months have been challenging for investors. During the first month of the coronavirus crisis, the stock market fell from record highs with unprecedented speed. Meanwhile, the subsequent rally has been just as befuddling to many. Canada’s most liquid stock index ETF, the XIU, plunged from $27 to $17 (a loss of...

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4 weeks ago
Using options in times of market uncertainty
July 07, 2020
Bearish Outlook

Using options in times of market uncertainty

Martin Noël

In times of market uncertainty like we are seeing now, many investors turn to options for the protection they can provide. Although the markets have recouped a good portion of their losses of the past few months, we cannot rule out another plunge that could test the depths of the recent decline. The high volatility in today’s...

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4 weeks ago
Butterfly on Shopify
June 10, 2020
Concepts

Butterfly on Shopify

Patrick Ceresna

Recently the Royal Bank of Canada lost its title as our country’s most valuable company in terms of market capitalization. For two brief weeks, Shopify sat at the top of the heap.   Chart 1: Royal Bank vs. Shopify May 31, 2020 Source: Bloomberg   SHOP’s run has been a sight to behold.   Chart 2: Shopify...

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2 months ago
Simplifying Complex Orders
June 01, 2020
Other

Simplifying Complex Orders

Steve Sosnick

One of the best features of options is that they can facilitate a wide variety of strategies.  Are you bullish on a stock but don’t expect a rise in volatility?  Then a call or put spread might be for you.  Do you expect a big move in an ETF, but don’t know which direction is more likely?  Then a straddle may be the...

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2 months ago
no-cover
May 26, 2020
Concepts

Trading your First Option

Martin Noël

As an investor, the first thing you need to know is how to choose which securities to buy. The second is when to sell them. That’s pretty easy, right? In this article, you will learn how to trade your first option. As you will see, you do not need to be an expert to start trading options. You just need to be familiar with...

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2 months ago
Profiting from the second-wave downturn
April 30, 2020
Bearish Outlook

Profiting from the second-wave downturn

Martin Noël

In a bear market, the lows of the first market downturn are often retested following a rally like the one we have just seen. This article examines how put options can be used to maximize the return on a bearish projection. As can be seen in the following chart, the unit price of the iShares S&P/TSX Capped Financials Index...

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3 months ago


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