Make the Most of a Decline in Canadian Pacific Railway Limited shares
November 21, 2017
Bearish Outlook

Make the Most of a Decline in Canadian Pacific Railway Limited shares

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock is beginning to show the signs of what looks very much like the early stages of a correction. It is clear that the MACD and RSI indicators and the stochastic oscillator are all in marked decline. If this is the case, the price may fall...

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3 days ago
Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited
October 30, 2017
Technical analysis

Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited

As the following graph shows, the price of shares in Agnico Eagle Mines Limited (AEM) appears to be on the verge of an upswing of unknown vigour. This new trend is confirmed by three indicators – the MACD, the RSI and the stochastic oscillator (%K) – that are giving clear signs of strength. Daily chart for AEM ($59.06 on...

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4 weeks ago
Implementation of a collar to protect profits accumulated in Royal Bank of Canada shares
October 20, 2017
Protection

Implementation of a collar to protect profits accumulated in Royal Bank of Canada shares

As you can see in the following graph, the price of shares in Royal Bank of Canada (RY), much like the financial sector in general, have shot up over 10% in just six weeks. Even though it is always risky to expect a trend to reverse, such growth cannot continue indefinitely. However, considering that RY just closed at $100.07...

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1 month ago
A Repair Strategy for Loblaws Companies Limited stock
September 28, 2017
Bullish Outlook

A Repair Strategy for Loblaws Companies Limited stock

Daily graph of L ($67.11 on Tuesday, September 26, 2017) As you can see in the above graph, the price of Loblaws Companies Limited (L) shares fell 18% from a peak of $78.85 on May 8, 2017, and then bottomed out at $64.65 on September 8, 2017. Since then, we have witnessed a tentative rebound that could suggest the worst is...

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2 months ago
Making the most of a potential rebound in shares of Intact Financial Corporation
September 18, 2017
Bullish Outlook

Making the most of a potential rebound in shares of Intact Financial Corporation

Daily graph of IFC ($100.37 on Wednesday, September 13, 2017)   As you can see in the above graph, the price of shares in Intact Financial Corporation (IFC) fell $3.96 from a peak of $103.03 on September 1, 2017 and then bottomed out at $99.07 on September 12, 2017. We can also see that the RSI indicator (5)  (the...

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2 months ago
Mixed Long Condor Spread on Shares in Dollarama Inc.
August 28, 2017
Technical analysis

Mixed Long Condor Spread on Shares in Dollarama Inc.

As the following graph shows, the price of shares in Dollarama Inc. have just created a brief trough at $118.81 after having peaked at $132.34 in June 2017. Recently the stock has stayed within this range, closing at $123.80 on August 22, 2017. Over the next few weeks, $125 may act as a resistance level and $120 may be a...

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3 months ago
Writing Calls Covered by Long-Term Call Options on CM Shares
August 11, 2017
Technical analysis

Writing Calls Covered by Long-Term Call Options on CM Shares

As the following graph shows, share prices for Canadian Imperial Bank of Commerce (CM) peaked in February 2017, after which they fell by almost 15% to settle at around $104. Since then, CM is up slightly and trying to break through $110, but this resistance level may be difficult to breach, since it was a support level in...

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3 months ago
Making a Bull Spread on CNR Metamorphose Into a Reverse Butterfly Spread
July 26, 2017
Bullish Outlook

Making a Bull Spread on CNR Metamorphose Into a Reverse Butterfly Spread

As shown in the following graph, shares in the Canadian National Railway Company (CNR) have begun a slight correction since peaking at $108.64 at the end of June. When the markets closed on July 24, CNR was trading at $101.63 and was near its 34-week moving average (34-WMA), which has served as a support point several times in...

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4 months ago
Three ways to build a butterfly spread
July 18, 2017
Neutral Outlook

Three ways to build a butterfly spread

A butterfly spread is appropriate when you expect that the price of the underlying asset will remain relatively unchanged and reach a specific target price upon expiration of the options used in the strategy. The following graph illustrates such a situation with shares in BCE Inc., when their price fluctuated within a range of...

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4 months ago
Profiting from a Stock’s Relative Stability over a Given Period of Time
July 04, 2017
Neutral Outlook

Profiting from a Stock’s Relative Stability over a Given Period of Time

There are three situations in which options can be used to take advantage of changes in the price of an underlying stock: when prices rise, when they fall, and when they enter a relatively stable period. In this article, I will examine how to benefit from a relatively stable stock price. More specifically, we will look at an...

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5 months ago