Yearly Archives: 2018

Strategy to profit from the tensions with China
December 18, 2018
Bearish Outlook

Strategy to profit from the tensions with China

Martin Noël

Recent events in the news have led us to analyze a stock discussed in our last article. As the following chart shows, the price of shares in Canada Goose Holdings (GOOS) has plummeted by over 20% in the turmoil surrounding the Huawei affair in which, following the arrest of Huawei’s Chief Financial Officer, China called for a...

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Selling call options at resistance
November 29, 2018
Technical analysis

Selling call options at resistance

Martin Noël

As we can see from the following chart, the share price of Canada Goose Holdings Inc. (GOOS) just hit the $90 resistance level after a major 50% rally in just one month. We can also see that the RSI (5) has fallen, while the stochastic indicator shows it is in overbought territory (%K ). This situation is an indication of a...

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Navigating a Slippery Slope
November 28, 2018
Bullish Outlook

Navigating a Slippery Slope

Jason Ayres

As I begin to write, oil has suffered a precipitous top to bottom (bottom? maybe) decline of over 30% from the high this year.   What drove it higher? The most common answer has been the possibility of U.S. sanctions on Iran.  This caused significant concern of a shortage in supply. A market fearful of an oil shortage...

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5 years ago
Writing covered calls is like collecting monthly rent from your tenant
November 21, 2018
Concepts

Writing covered calls is like collecting monthly rent from your tenant

Montréal Exchange

Owning an income property has its pros and cons. As a landlord, it gives you the right to collect monthly rent. You can also offset your rental income from the property’s related expenses. Plus, the property has potential value growth. Owning a rental property is a winning strategy on many levels. But there are also some...

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A bearish diagonal spread on a resistance level
November 19, 2018
Technical analysis

A bearish diagonal spread on a resistance level

Martin Noël

As the following chart shows, the price of shares in Bank of Nova Scotia (The) (BNS) has been on a downward trend over the last 12 months. Over the last few weeks, the price has stabilized in a corridor of $69 to $72, and it has faced resistance when it reached the 30-day moving average. The chart shows that, in the last year,...

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5 years ago
Getting Paid With the Intention of Buying Shares
October 25, 2018
Bullish Outlook

Getting Paid With the Intention of Buying Shares

Martin Noël

As the following chart shows, the price of shares in Canadian Tire Corporation Limited, Cl. A (CTC.A) plunged 20.6%, from a peak of $183.93 on August 8 to its recent trough at $146.08 on October 11. It has since climbed to just above $150, allowing us to use this trough as a short-term support level. An investor who is...

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5 years ago
How to turn a profit with puts following a technical rejection
October 11, 2018
Bearish Outlook

How to turn a profit with puts following a technical rejection

Martin Noël

How to turn a profit with puts following a technical rejection As the following chart shows, the price of shares in Linamar Corporation (LNR) surged to a resistance level of $65 after a free trade agreement was reached with the U.S., and it has since been on a steady decline. This response, which does not bode well, could bring...

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5 years ago
Perspective on the Volatility on Cannabis Stocks
October 01, 2018
Volatility

Perspective on the Volatility on Cannabis Stocks

Patrick Ceresna

Speculation is enthusiastically running wild in the Canadian cannabis industry over the last 2 years.  This has led to extraordinary volatility and gains for investors who seek a stake in the industry.  For this article I will refrain from offering my opinions to the merits of this investment and rather focus on sizing up the...

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5 years ago
Commitment to Buy Stock Through a Ratio Spread
September 25, 2018
Bullish Outlook

Commitment to Buy Stock Through a Ratio Spread

Martin Noël

As you can see in the following chart, the price of shares in Canopy Growth Corporation (WEED) appears to be stabilizing, for now, in a range between a high of $74.45 reached on September 5, 2018 and its most recent low of $52.80, reached on September 14. We can also see that its high of $48.72 on June 22 may represent a...

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5 years ago
Option Selling – It’s a Good Business to Be In
September 17, 2018
Index Options

Option Selling – It’s a Good Business to Be In

Hans Albrecht

When observing option pricing, we should always remember that premiums, while certainly linked to reality, are somewhat of an imperfect predictive tool. Option prices attempt to forecast movement in equities or indices for a given period into the future, but they are unlikely to be entirely correct in the end.    For...

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