Yearly Archives: 2019
Enhancing Equity Positions with Options
Tony Zhang
Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...
Options Insights: Increasing Yields on Equity Positions with Options
Tony Zhang
The 12th annual Options Education Day in collaboration with the Options Industry Council (OIC) will take place in Toronto on September 14, 2019 at the Westin Harbour Castle. Seats are limited, so sign up before August 19 for the early bird pricing! To learn more: m-x.ca/oed Want to learn more about Increasing Yields on...
Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times
Antonio Cabeda
Key facts on covered calls This strategy consists of writing a call that is covered by an equivalent long stock position. It represents a simple way for investors to manage their short-term risk exposure, allowing them to earn premium income (i.e. the money received from writing the calls) in return for part of the stock’s...
Currency Options University – Part 3
Patrick Ceresna
Part 3: Specifications of USX Options To summarize, in Part 1 we reviewed the macro drivers that influence a currency’s value, and in Part 2 we focused on the impact of those changes in the currency’s value on investors. The focus in Part 3 will be on understanding the specifications of Canadian USX options and how to size...
September – Educational Events
Montréal Exchange
September 4th, 2019 Webinar: Understanding the Collar Strategy Time: 12:00 p.m. Speaker: Jason Ayres Where: Online Language: English More information here. September 10th, 2019 Webinar: Increasing Yields on Equity Positions w/ Options Time: 4:15 p.m. Speaker: Tony Zhang Where: Online Language: English More...
Generating Income with Credit Vertical Spreads
Tony Zhang
Credit spreads are a popular strategy that is used to generate income with limited risk from a modest bullish, bearish or even neutral view on a stock or ETF. Many investors are attracted to writing higher delta options because of the higher premiums, but it is important to understand the tradeoff, which is that this will risk...
Profiting From Expectations of Relative Stability
Martin Noël
Shares in Cogeco Communications Inc. (CCA) were trading at $104.36 at this writing on August 9, 2019, but as the following graph shows, they jumped on July 10 when the company released its latest financial results. After topping out at $107.05 on July 16, prices moved in a relatively narrow corridor of $103.33 to $107.35....
Minimizing Your Risk with Vertical Debit Spreads
Tony Zhang
What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to be profitable, one must predict...
Options Insights: Minimizing Risk with Debit Vertical Spreads
Tony Zhang
Want to learn more about Minimizing Risk with Debit Vertical Spreads? Participate to the webinar on August 13, 2019 at...
Maximizing Technical Analysis with Options Trading
Tony Zhang
As a market strategist and practitioner of technical analysis for over a decade, I have spent my share of time studying indicators, price patterns and trading strategies. Having worked with thousands of clients on technical based strategies, I find that the most important aspect of trading is trade and risk management....
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