Yearly Archives: 2021
Real-time Quotes are Now Offered on the Montreal Exchange Website
Montréal Exchange
This feature allows you to make informed decisions using up-to-date bid/ask prices on Canadian options and futures contracts. Another feature of the website is that you can easily filter any option chain by column header. This allows you to sort the information in ascending or descending order (i.e.: if you want to find out...
Index Futures 101
Futures First Academy
“Index futures” is not a term that is too alien for anyone with basic knowledge of finance. It refers to a futures contract created on an index that functions as the underlying variable for such futures contract. For example, in Canada, the most popular stock index is the S&P/TSX 60 Index*, a stock index of 60 large...
How Options React to a Stock Split
Montréal Exchange
Companies decide to split their stock when the price has run up and the stock has become too expensive for retail investors. Once a stock splits, nothing fundamental has changed, and the shares should not be worth any more or less than before. The same logic holds true for the underlying option contracts. What Is a Stock Split?...
Collect Maximum Income Selling Straddles and Strangles
Tony Zhang
Straddles and strangles are considered advanced options strategies that are suitable for more experienced traders with a high tolerance for risk. However, they also generate maximum income for investors with larger accounts and longer investment horizons. Both of these strategies require a sizable margin account and clearance...
Videos
TD Direct Investing
Option Videos Introduction to options Why Trade Options Common options terms Why buy a call option? Why buy a put option? Why sell a call option? Why sell a put option? How to read an option chain In-the-money vs. out-of-the-money options Opening and closing option trades Common option misconceptions Getting started with...
Volatility Crush: A Misunderstood Term
Montréal Exchange
Volatility crush is among the more common but poorly understood terms used by new options investors. They mostly place irrational bets on options ahead of earnings because they do not fully understand what they are doing. These investors will take a look at a high-priced stock that is set to report earnings in the near-term and...
Not So Foreign: Unpacking the Currency Market and USX Options Strategies
Montréal Exchange
If you have already traded options on equities but are now looking for a new asset class, you might be wondering if it is possible to blend exposure to interest rates, commodities, cryptocurrencies, geopolitics, and the global economy. In fact, you have just described the foreign exchange (FX) market and, in particular,...
Gamma, Your Option’s Silent Accelerator and Decelerator Pedal
Tony Zhang
What is Gamma? Gamma is one of the least understood of the Greeks affecting an option’s price. Many investors are familiar with the Greek variable delta: the change in the underlying option’s price with respect to the change of the underlying stock price. Gamma is the rate of change in delta per $1 dollar move in the...
Earnings And Options: A Risky But Lucrative Relationship
Montréal Exchange
North American companies listed on a stock exchange report their earnings results every quarter. Options investors view this event as an opportunity to reap large returns if a stock moves dramatically in one direction or another. Earnings Move Stocks Companies must release information on their earnings to investors on a regular...
Options Trading Insights with our 13 Year Technical Analysis Backtest
Tony Zhang
Overview Technical analysis is a powerful, yet exceedingly difficult method of analysis to understand and quantify. By leveraging historical data, technical analysis aims to forecast the future price movement of a financial asset. While many of these strategies may look promising, the reality is that implementation of these...
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