no-cover
July 22, 2014
Other

This One’s For The Blackberry Bulls

Few Canadian stocks have garnered as much attention as Blackberry LTD (TSE:BB). In fact, it has been the topic of a few of my postings over the last year or so. Why, you may ask? Well, option traders love volatility. By that I mean price action, and fewer Canadian stocks deliver as much action as Blackberry. With a historic...

594
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5 years ago
no-cover
June 13, 2014
Other

Asymmetric Returns with a Directional Condor

The objective of any trader or investor is to achieve the greatest return for the least amount of risk. This is what you hear hedge fund and money managers referring to as “asymmetric returns”. One of the benefits of using options to participate in a directional view is the limited risk exposure of the purchased...

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1
5 years ago
no-cover
May 20, 2014
Other

European Central Bank QE and the U.S. Dollar

Last Thursday Mario Draghi confirmed the suspicions of many…that the European Central Bank was preparing a Quantitative Easing type policy package for its next meeting scheduled for June. Considerations will include cuts in interest rates and other measures with a focus on stimulating lending to small and medium size...

630
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5 years ago
no-cover
April 17, 2014
Other

Understanding The VIXC

If you spend a little time surfing around the Montreal Exchange site you will eventually make your way to the MX Indices tab. At the top of the menu you will find a link to the VIXC, which is the S&P/TSX 60 VIX or volatility index. The VIXC reflects the 30 day implied volatility of S&P/TSX 60 front month and next month...

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5 years ago
no-cover
March 14, 2014
Other

Options Action on Bombardier

From time to time I like to take a look at the “Most Active Options” ranking on the Montreal Exchange home page. It was no surprise to see that 6 out of the 10 were mining companies this morning. Since Richard Croft already posted and interesting article on this sector the other day entitled Gold, Where’s the...

812
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5 years ago
no-cover
February 11, 2014
Other

Generate Cash Flow with Less Capital – Consider Credit Spreads

Many investors seek to enhance cash flow in their portfolios. For the option educated, this can involve the implementation of the Covered Call strategy or selling Naked Calls or Naked Puts. The objective is to collect a credit through the sale of an option contract with the expectation that it will expire worthless. This can...

673
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6 years ago
no-cover
January 13, 2014
Other

Is Blackberry Back in Favour or Just Getting Squeezed?

Blackberry (TSX:BB) has enjoyed a fairly impressive snap back over the last few weeks. Since the beginning of December, shares have climbed from $6.00 to $10.00, or a whopping 66%. The turnaround can be attributed to a couple of things. John Chen took over as CEO back in December , signing a manufacturing agreement that set the...

572
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6 years ago
no-cover
December 10, 2013
Other

Canadian Banks Topping Today’s Most Active

After demonstrating how to take a confident stance on Toronto Dominion Bank using a protective put in last weeks blog titled Repositioning Using Puts , we see that a number of Canadian banks are starting the week off strong, occupying 6 of the 10 spots on today’s Most Active Options list: If an investor had a specific...

1058
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6 years ago
no-cover
December 03, 2013
Other

Repositioning Using Puts

One of the challenges with the current market is that stocks have been extending gains on a month over month basis with very few pull backs. This is great if you had the foresight to position yourself early. However, the probability of a correction increases everyday that the market pushes higher, diminishing the near-term...

783
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6 years ago
no-cover
November 26, 2013
Other

Understanding Synthetics

Despite sounding somewhat complex, a synthetic option strategy simply refers to combining an option contract with the underlying security to arrive at the same risk/reward profile of a specific options only position. It is not always the intention of the investor to implement a synthetic position. More often then not, the...

890
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6 years ago