Selling call options at resistance
November 29, 2018
Technical analysis

Selling call options at resistance

As we can see from the following chart, the share price of Canada Goose Holdings Inc. (GOOS) just hit the $90 resistance level after a major 50% rally in just one month. We can also see that the RSI (5) has fallen, while the stochastic indicator shows it is in overbought territory (%K ). This situation is an indication of a...

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2 weeks ago
A bearish diagonal spread on a resistance level
November 19, 2018
Technical analysis

A bearish diagonal spread on a resistance level

As the following chart shows, the price of shares in Bank of Nova Scotia (The) (BNS) has been on a downward trend over the last 12 months. Over the last few weeks, the price has stabilized in a corridor of $69 to $72, and it has faced resistance when it reached the 30-day moving average. The chart shows that, in the last year,...

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4 weeks ago
Getting Paid With the Intention of Buying Shares
October 25, 2018
Bullish Outlook

Getting Paid With the Intention of Buying Shares

As the following chart shows, the price of shares in Canadian Tire Corporation Limited, Cl. A (CTC.A) plunged 20.6%, from a peak of $183.93 on August 8 to its recent trough at $146.08 on October 11. It has since climbed to just above $150, allowing us to use this trough as a short-term support level. An investor who is...

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2 months ago
How to turn a profit with puts following a technical rejection
October 11, 2018
Bearish Outlook

How to turn a profit with puts following a technical rejection

How to turn a profit with puts following a technical rejection As the following chart shows, the price of shares in Linamar Corporation (LNR) surged to a resistance level of $65 after a free trade agreement was reached with the U.S., and it has since been on a steady decline. This response, which does not bode well, could bring...

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2 months ago
Commitment to Buy Stock Through a Ratio Spread
September 25, 2018
Bullish Outlook

Commitment to Buy Stock Through a Ratio Spread

As you can see in the following chart, the price of shares in Canopy Growth Corporation (WEED) appears to be stabilizing, for now, in a range between a high of $74.45 reached on September 5, 2018 and its most recent low of $52.80, reached on September 14. We can also see that its high of $48.72 on June 22 may represent a...

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3 months ago
How to benefit from the rising vapors of cannabis
September 13, 2018
Bullish Outlook

How to benefit from the rising vapors of cannabis

The cannabis market has been booming since August 15, 2018 when Constellation Brands Inc. announced a major $5 billion investment in Canopy Growth Inc. (WEED). Since then, the stock has shot up 132.6% from a low of $32.01, and it recently topped out at $74.45. Its closest competitor, Aurora Cannabis Inc., has ridden the same...

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3 months ago
Writing put options based on a 50-day moving average
August 21, 2018
Bullish Outlook

Writing put options based on a 50-day moving average

As the following graph shows, the stock of Colliers International Group (CIGI) has begun a slight correction following a strong bullish trend that began in February, and it has now landed right on its 50-day moving average. Its RSI and the stochastic oscillator are trending upwards, so the bullish trend will be confirmed if the...

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4 months ago
Purchasing put options based on a bearish flag
August 14, 2018
Bearish Outlook

Purchasing put options based on a bearish flag

As the following graph shows, in July 2018, Shopify Inc. cl. A (SHOP) reached a double peak at around $230. This slowed its momentum, with the stock subsequently falling to $172.90 to climb back up to its current level, $195.81, by Friday, August 10, 2018. This rally, which looks very much like a bearish flag, may be...

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4 months ago
Writing call options on a second peak
July 25, 2018
Neutral Outlook

Writing call options on a second peak

As the following graph shows, the price of shares in Restaurant Brands International Inc. (QSR) has performed very well since bottoming out at around $68 in April 2018. QSR is trading at $85.20 at this writing, so it is near its previous high, in the $86 to $88 range. As we can see, the overbought and negative divergence...

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5 months ago
Selecting the Optimal Call Options
July 10, 2018
Bullish Outlook

Selecting the Optimal Call Options

As the following chart shows, the price of shares in Rogers Communications Inc. cl. B (RCI.B) has just broken through $63, which has been a major resistance level since April. While there can be no guarantees, this bullish trend could take the stock to another resistance level over the next few months, at around $70.  ...

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5 months ago