Yearly Archives: 2019

Writing covered call options to profit from a period of consolidation
December 03, 2019
Bearish Outlook

Writing covered call options to profit from a period of consolidation

Martin Noël

As can be seen in the following graph, the price trend for shares in the Canadian National Railway Company (CNR) appears to have faltered. The stochastic oscillator indicator has just fallen below 75, much like it did in June 2019. At that time, the price of CNR stayed in a channel for many weeks. As long as the oscillator...

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3 years ago
Currency Options University – Part 4
November 22, 2019
Concepts

Currency Options University – Part 4

Patrick Ceresna

Directional Trading with USX Currency Options Our focus in Part 4 of the series is to demonstrate how USX currency options can be used for directional trading through the direct purchase of a call or put option. Options offer investors a way to buy a long position with a defined risk (limited to the cost of the option), while...

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4 years ago
Covered Call Block Trade on Canada Goose Holdings Inc (GOOS.TO)
November 14, 2019
Protection

Covered Call Block Trade on Canada Goose Holdings Inc (GOOS.TO)

Mehra Wealth Management Group

For almost 20 years, our team at CIBC Private Wealth has used defensive option strategies including Covered Calls, Selling Covered Puts and Collars to manage client portfolios. Our objective is to generate income from option premium in addition to dividends paid on stocks. Our primary focus is on wealth preservation. A Covered...

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4 years ago
Impact of the Exchange Rate on Our Investments in the United States
November 12, 2019
Concepts

Impact of the Exchange Rate on Our Investments in the United States

Martin Noël

Given our proximity to the United States and/or for purposes of geographic diversification, many investors have investments in their portfolios that are priced in U.S. dollars. As with all investments, U.S. equities carry market risk, and it is important to carefully analyze securities so as to minimize, as much as possible,...

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4 years ago
Improving order execution efficiency
October 03, 2019
Stock Options

Improving order execution efficiency

Martin Noël

On July 27, 2007, the Montréal Exchange launched a penny trading pilot project that ended on February 26, 2016 with the implementation of a permanent program. Before the pilot project began, only options priced below $0.10 were allowed to trade with a minimum price increment of $0.01 (“penny trading”), while all other...

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4 years ago
Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times
September 06, 2019
Bearish Outlook

Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times

Montréal Exchange

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...

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4 years ago
Currency Options University – Part 3
September 03, 2019
Concepts

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...

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4 years ago
Profiting From Expectations of Relative Stability
August 20, 2019
Concepts

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....

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4 years ago
Currency Options University – Part 2
August 04, 2019
Other

Currency Options University – Part 2

Patrick Ceresna

Part 2: Impact of U.S. Dollar Fluctuation on Canadian Returns I had the opportunity, early in my career, to work at a full-service brokerage at a Tier 1 Canadian bank. I remember back in the day overhearing an investment advisor having an argument with a client about the client’s performance. The client was questioning the...

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4 years ago
Low-Cost Insurance Against a Drop in Share Price
August 01, 2019
Neutral Outlook

Low-Cost Insurance Against a Drop in Share Price

Martin Noël

As the following chart shows, the price of shares in Waste Connections Inc. (WCN), which is trading at $123.70 as these lines are being written on July 25, 2019, has delivered an excellent return of 28.6% since bottoming out at $96.16 on December 24, 2018. The chart shows that the stochastic oscillator (Stoch), an indicator of...

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4 years ago
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