Yearly Archives: 2013

no-cover
April 10, 2013
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Follow Up on Royal Bank

Patrick Ceresna

On February 28th, 2013 we wrote a blog discussing if Royal Bank was worth investing in. To read the blog, click here: http://optionmatters.ca/blog/2013/03/01/royal-opportunity/ Our focus was to find an interesting way for investors to play Royal Bank. At that time in February, these were the facts: Royal Bank was trading at...

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11 years ago
no-cover
April 08, 2013
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Option Writing Strategies Are Not Sure Bets

Richard Croft

Is there a particular option strategy that works all the time? The answer of course is no just as it is with stock picking or asset allocation metrics. Despite that many investors focus entirely on option writing strategies. The logic seems sound given the potential cash flow and the fact that most options expire worthless....

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11 years ago
no-cover
April 02, 2013
Other

The Put Backspread Hedge

Patrick Ceresna

The Canadian market has continued to complacently forge ahead. Overall we have seen little progress higher throughout March as the international geopolitical circumstances in Cyprus and Korea have started to slowly taper investor enthusiasm. In past blogs, the current state of the implied volatility priced into index options...

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11 years ago
no-cover
April 01, 2013
Other

The Power of Propaganda

Richard Croft

It must have been a slow week, or perhaps the news media was providing us with some much needed comic relief. When the long lines of depositors making a run on Cypriot banks never materialized, we were treated to pictures of Kim Jong Un, North Korea’s leader for life and close friend of Dennis Rodman, signing an order to put...

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11 years ago
no-cover
March 25, 2013
Other

Makes you Wonder What’s Next?

Richard Croft

The title reflects the elephant in the room that overhangs the silent majority; is anything safe from the long arm of distressed governments? It sheds light on the veiled risks associated with unchecked governments searching for new sources of revenue! This week we witnessed the “what next” which is the Cyprus Solution....

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11 years ago
no-cover
March 22, 2013
Other

To Hedge or Not To Hedge

Patrick Ceresna

The global stock markets have been kind to investors over the last 3 months as many international markets are up 2-10% in the first quarter alone. But not every investor can share in the celebration. When looking at the average investment portfolio for a Canadian, it has been a mixed picture. This is because the average...

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11 years ago
no-cover
March 18, 2013
Other

Investors Fret over SNC–Lavalin

Patrick Ceresna

SNC-Lavalin has once again made headlines as scandals with the Montreal’s new megahospital remain unresolved. The news certainly has contributed to SNC-Lavalin’s recent price weakness. Investors fear that if the plot to rig the megahospital contract in SNC’s favor is true, the company would face penalties and material...

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11 years ago
no-cover
March 10, 2013
Other

Straddle Follow Up

Richard Croft

Last week I talked about using XIU straddles and short-term bonds as an alternative approach to medium and long-term fixed income securities. I was speaking about the use of straddles as a hedging mechanism that might provide the same level of protection normally associated with fixed income assets. And I posited that the...

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11 years ago
no-cover
March 08, 2013
Other

Catching Falling Knives

Patrick Ceresna

No sector has experienced more pessimism over the last year than the gold mining sector. This has left intelligent investors feeling like deer in headlights. Gold bulls will sight countless reasons as to why gold should be at $2,500 and why gold mining companies should be flourishing. Yet central banks around the world continue...

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11 years ago
no-cover
March 04, 2013
Other

A New Approach to Crisis Insurance

Richard Croft

Invest ‘til May then go away ‘til labor day! That’s a seasonal strategy that has a large following among professional investors. It may be nothing more than advisors taking a break over the summer months making it more difficult for the market to move higher without enthusiastic buyers. Or if may simply be an old wives...

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11 years ago
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