Enhancing income and returns through covered call writing has become one of the most common strategies being adopted by investors. Arguably selling calls against shares and ETFs is considered a conservative strategy that almost any Canadian retail investor can access, in and out of their registered accounts. While many...
Everyone looks forward to something for different reasons. When investors choose to invest in a company, they will wait impatiently for the most crucial announcement: earnings season. Last week, Royal Bank of Canada (TSX:RY) reported a strong third quarter which led to a dividend hike of 5 per cent to 91 cents per share. This...
Fewer topics have been more hotly debated in political (and social) circles then the legalization of marijuana. Now despite which direction your moral compass points on this, it’s an industry that is here to stay. In an economic environment where governments continue to look for new ways to get into our pockets, it is no...
As the following graph shows, the price of shares in Dollarama Inc. have just created a brief trough at $118.81 after having peaked at $132.34 in June 2017. Recently the stock has stayed within this range, closing at $123.80 on August 22, 2017. Over the next few weeks, $125 may act as a resistance level and $120 may be a...
S&P/TSX 60 (“the Index”) options are generally priced a little too high versus actual market movement. In other words, many buyers of insurance will pay more than ‘fair value’ for options in order to protect against drawdowns and volatile market environments. Based on an ongoing measure of realized volatility, or...
As the following graph shows, share prices for Canadian Imperial Bank of Commerce (CM) peaked in February 2017, after which they fell by almost 15% to settle at around $104. Since then, CM is up slightly and trying to break through $110, but this resistance level may be difficult to breach, since it was a support level in...
The Canadian marijuana market is preparing for a major development: the legalization of recreational use of cannabis. While some may think that legalization will boost the Canadian economy, others believe that marijuana stocks are simply overhyped. One of the largest Canadian marijuana stocks company, Canopy Growth...
The recent hawkish shift and rate hike by the Bank of Canada has ushered in a resounding 10% rise in the Canadian dollar in a few short months. This has not only put stress broadly on Canadian equities, but it has instilled concerns about the tightening of credit conditions on an already over indebted Canadian consumer....
The rallying markets have led to a large pool of investors accumulating unrealized gains on their portfolio. One may believe that now is a good time to cash in a profit, but investors may wish to hold on to their stocks just a little longer if they are receiving a healthy dividend payment from these holdings or wish to avoid...
As shown in the following graph, shares in the Canadian National Railway Company (CNR) have begun a slight correction since peaking at $108.64 at the end of June. When the markets closed on July 24, CNR was trading at $101.63 and was near its 34-week moving average (34-WMA), which has served as a support point several times in...