Yearly Archives: 2013

no-cover
December 16, 2013
Other

Bond Risk

Richard Croft

We are witnessing a major shift in risk allocation across asset classes. As the bond market prices in tapering, medium and longer term rates are rising. With short term rates at or near zero, and likely to remain there for some time, the yield curve is steepening. As these price adjustments work their way through the system, we...

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4 years ago
no-cover
December 10, 2013
Other

Canadian Banks Topping Today’s Most Active

Jason Ayres

After demonstrating how to take a confident stance on Toronto Dominion Bank using a protective put in last weeks blog titled Repositioning Using Puts , we see that a number of Canadian banks are starting the week off strong, occupying 6 of the 10 spots on today’s Most Active Options list: If an investor had a specific...

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4 years ago
no-cover
December 09, 2013
Other

Could the Economy be Better than Expected?

Richard Croft

Let’s assume for a moment that the North American economies are performing better than expected. Not a real leap considering that most analysts think the broader North American economy is walking on air, with looming US debt ceiling and sequestration debates and their fast approaching January 15th deadlines notwithstanding....

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4 years ago
no-cover
December 03, 2013
Other

Repositioning Using Puts

Jason Ayres

One of the challenges with the current market is that stocks have been extending gains on a month over month basis with very few pull backs. This is great if you had the foresight to position yourself early. However, the probability of a correction increases everyday that the market pushes higher, diminishing the near-term...

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4 years ago
no-cover
December 02, 2013
Other

Investment Advisors using Options

Patrick Ceresna

Over the years, no topic has been more controversial then the use of options by investment advisors for unsophisticated clients. This has now reached levels where a number of Canadian wealth management firms have placed compliance restrictions on advisors, limiting them to using only the simplest strategies for their clients....

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4 years ago
no-cover
November 26, 2013
Other

Understanding Synthetics

Jason Ayres

Despite sounding somewhat complex, a synthetic option strategy simply refers to combining an option contract with the underlying security to arrive at the same risk/reward profile of a specific options only position. It is not always the intention of the investor to implement a synthetic position. More often then not, the...

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4 years ago
no-cover
November 25, 2013
Other

Covered Calls on Gold Stocks?

Richard Croft

It’s been some time since I talked about gold. Not surprising since I am anything but a gold bug. But when you look at where some of the premier Canadian gold stocks are trading, even the most avid non-believer has to take a second look. Not that I recommend buying the miners in search of a turnaround, but as covered call...

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4 years ago
no-cover
November 19, 2013
Other

Selling Puts as a Strategy

Patrick Ceresna

I wanted to use this article to review and discuss the end result of the blog I wrote last month on Talisman Energy (TSX:TLM). While there was substantial options activity last month on the stock, our focus was on one particularly large trade which consisted of the selling of 10,000 put contracts of the November $12.50 strike....

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4 years ago
no-cover
November 18, 2013
Other

TransAlta Signals a Technical Buy

Jason Ayres

This week I’m looking at TransAlta (TSE:TA) as a buying opportunity. Not only did TransAlta options make the most active list last week, an analysis of the price chart reveals a number of technical attributes supporting a continuation to the upside for the stock. TransAlta is a non-regulated electricity generation and...

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4 years ago
no-cover
November 11, 2013
Other

Tim Hortons Earnings Follow Up

Jason Ayres

Back on October 15th, I wrote about some unusual activity on Tim Hortons options that caught my eye earlier in the week. At the time, I hypothesized that a trader may have created a position to take advantage of the earnings report scheduled to be released on November 7th. While I will provide a brief review of the strategy...

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4 years ago