Taking Advantage of Time Decay With a Mixed Ratio Spread
April 16, 2018
Neutral Outlook

Taking Advantage of Time Decay With a Mixed Ratio Spread

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock has stayed within a range of $215 to $240 since October 2017 and $190 to $240 over the last 12 months. While the price could fall back down to $190, equal to a drop of nearly $35 from the current level ($224.16), we also believe that a...

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4 days ago
Writing put options on a support level
March 27, 2018
Bullish Outlook

Writing put options on a support level

As the following graph shows, the share price of Canadian Imperial Bank of Commerce (CM) has been trending downward since the beginning of 2018. When markets closed on Friday, March 23, CM was trading at $114.07. But as we can see, a price range of $112 to $114 has represented a support level from which prices surged twice....

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3 weeks ago
Buying Put Options to Hedge Shares
March 19, 2018
Protection

Buying Put Options to Hedge Shares

As the following graph shows, shares in Waste Connections Inc. (WCN) have been rallying since February 6, 2018, when they bottomed out at $81.52. As I write these lines, WCN is priced at $96.67, up 18.58%. The RSI indicator and stochastic oscillator are now in extreme overbought territory. Even though this is not, in itself, an...

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1 month ago
Making the most of a lower price for shares of Dollarama Inc.
February 28, 2018
Technical analysis

Making the most of a lower price for shares of Dollarama Inc.

As the following graph shows, the share price of Dollarama Inc. (DOL) fell $22.60, from a high of $170.00 reached on January 29 to a low of $147.40 on February 9, 2018. DOL then rallied to $158.97, right up to the level of its moving averages. Since then, the stock has been below its moving averages, and if it continues to...

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2 months ago
A bearish diagonal spread on shares in George Weston Ltd.
February 20, 2018
Bearish Outlook

A bearish diagonal spread on shares in George Weston Ltd.

As the following graph shows, prices for shares of George Weston Ltd. (WN) have broken below their trough of last September 2017 following a timid attempt at a rebound that lasted four months. Since peaking in January, 2018, WN has followed the general market trend by dropping swiftly, but the rally, which has been anemic, has...

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2 months ago
Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation
January 31, 2018
Bullish Outlook

Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation

As the following graph shows, the share price of Premium Brands Holdings Corporation (PBH) has been on a bullish trend, with some more or less large corrections since reaching a plateau in the spring of 2017. Until we see evidence to the contrary, we should assume that this trend will continue for a while. Daily chart as at...

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3 months ago
An Iron Butterfly Spread on Shares of Canopy Growth Corporation
January 24, 2018
Technical analysis

An Iron Butterfly Spread on Shares of Canopy Growth Corporation

As you can see in the following graph, shares in Canopy Growth Corporation (WEED) have shot up in price since bottoming out at $6.58 in June 2017. This represents more than 600% growth to its recent peak at $44. Since then, WEED has slipped, falling to $29.50 before bouncing back and has been fluctuating in a range that could...

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3 months ago
Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation
January 11, 2018
Protection

Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation

As the following graph shows, the share price of Intact Financial Corporation (IFC) seems to be on a downward trend as it has just broken through its previous trough at around $104. Its stochastic oscillator (%K) and relative strength index (RSI) are also trending downward. Since this bearish trend could take IFC down as far as...

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3 months ago
Profiting on a higher share price for Franco-Nevada Corp.
January 03, 2018
Technical analysis

Profiting on a higher share price for Franco-Nevada Corp.

As you can see in the following graph, the price of shares in Franco Nevada Corp. (FNV) appears to have stabilized at around $99, just above the $95 support level, after having fallen almost systematically since November 28 when it peaked at $110.18. This decline pushed the stochastic oscillator, shown at the bottom of the...

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4 months ago
A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares
December 01, 2017
Neutral Outlook

A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares

After having peaked at $28.70 in October, the price of shares in Air Canada (AC) seems to have slipped into a short-term trough at the $22 support level. Since then, the price rallied to $26 and, as of this writing, has settled in at around $24. Prices from $22 to $28 now represent a trading range that could contain price...

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5 months ago