Yearly Archives: 2013

no-cover
June 11, 2013
Other

Beware Volatility

Jason Ayres

Option traders have been enjoying a period of low implied volatility for quite some time now. Periods of low implied volatility make option buying attractive as premiums trade at relative lows comparative to periods when implied volatility is high. In order to understand the implied volatility variable, we first have to...

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6 years ago
no-cover
June 10, 2013
Other

A Goldilocks’ Bear Call Spread

Richard Croft

The US Jobs report that was released on Friday painted an almost perfect goldilocks scenario. Something for everyone! Enough new jobs were created to support the thesis that the US economy is growing, albeit at a tepid pace. At the same time, the unemployment rate rose from 7.5% to 7.6% as more people entered the labour force....

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6 years ago
no-cover
June 03, 2013
Other

An Overview of Covered Call Writing

Richard Croft

Covered call writing reduces equity risk and provides tax advantaged cash flow. It is not a panacea, which means it is not a standalone investment strategy. It works best when combined with other assets within a broadly diversified portfolio. You can execute a covered call write by buying say, 100 shares of Blackberry (TSX: BB)...

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6 years ago
no-cover
May 27, 2013
Other

Is Japan a precursor of what’s to come?

Richard Croft

Japan’s Nikkei 225 index, the broadest measure of blue chip stocks in Japan, fell more than 7% during the Thursday (i.e. Wednesday night in North America) trading session, providing investors with another data point evidencing the fickle nature of sentiment and perhaps, more importantly, the influential role of hedge funds in...

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6 years ago
no-cover
May 24, 2013
Other

Risk Management for Active Traders

Patrick Ceresna

How much money should a trader allocate to any single trade? Should they buy the stock or should they buy options? If you’re not sure, you are not alone. The majority of investors and traders do not have a system for determining how much is too much to invest in one idea. This is a dilemma that has been debated and...

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6 years ago
no-cover
May 21, 2013
Other

China’s Ghost

Richard Croft

Word from China is sending mixed messages to the world. GDP appears to be picking up particularly over the last quarter. Good news for a world in dire need of stimulus! At issue is what’s behind the growth? The debate centers around a massive infrastructure construction boom that has lead to overcapacity in residential real...

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6 years ago
no-cover
May 14, 2013
Other

Hedging a Portfolio Against a Broad Market Decline

Jason Ayres

As we traveled across Canada over the last month on behalf of the M-X, I met many retail investors concerned about the markets and the fate of their portfolios. While some were concerned about the risk associated with individual holdings, many were skeptical as to how much longer the stock market in general could hold up. While...

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7 years ago
no-cover
May 13, 2013
Other

The European Union Has Changed Its Focus

Richard Croft

Since the European Union (EU) bailout programs began there has been an austerity pre-condition. Mostly the result of German strong arm tactics designed to get member States to restructure social programs so as to level the playing field in a way that supports a single eurozone currency. The challenge is how does one deal with...

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7 years ago
no-cover
May 06, 2013
Other

Buy on a Dip!

Richard Croft

Watch the financial news, search the Internet, read the financial press and the most common theme coming from those who are supposedly “in the know” is that the US stock market is ahead of itself. And while those same talking heads are longer term bullish most are waiting for pullbacks to put new money to work. In other...

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7 years ago
no-cover
May 01, 2013
Other

Bet on Barrick Gold

Jason Ayres

Barrick Gold Corp (TSX:ABX) has suffered the same consequences as many of its counterparts in the mining sector. To blame the most recent drop in gold would be misguided. While Barrick suffered a 33% drop in a little under a week on the heels of the gold sell off, the fact is that the downtrend was already well in place. One...

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7 years ago