Pairing Option Strategies with Forecasts
August 25, 2016
Bearish Outlook

Pairing Option Strategies with Forecasts

At the present time, the S&P/TSX Composite is sitting roughly halfway between its 52-week high and low points. Whether your current forecast is glass half empty or glass half full, there are two simple option strategies that Canadian investors can employ for either forecast. The bull call spread, also called a long-call...

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When to Exercise Call Options to Collect the Dividend
August 10, 2016
Dividends

When to Exercise Call Options to Collect the Dividend

Before examining the considerations, we first need to understand the mechanics of call options and the dividend process. Dividends are payments by a company to shareholders of record. These payments may be regular, predictable, variable or even one-time events. Some industries, like tanker or mining companies, pay highly...

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The Covered Strangle is both an Income and Investment Strategy
July 29, 2016
Revenue

The Covered Strangle is both an Income and Investment Strategy

Canadian investors seeking an index or single stock option strategy may want to consider the covered strangle. It can be employed to enhance yield and provide a strategic means to both add to and exit existing positions. Like any options strategy there are trade-offs, and the covered strangle does pose some risk.   The...

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Moving Beyond the Basics with the Covered Call Strategy
June 01, 2016
Neutral Outlook

Moving Beyond the Basics with the Covered Call Strategy

Once investors learn the basics of both buying and selling calls and puts, the next natural progression is learning how to use options in conjunction with long stock, ETF or Indices. The covered call is a widely used strategy that is appropriate for a neutral or slightly bullish forecast. It is simple in its essence, but like...

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3 years ago