Variables with an impact on the value of options
You have done your homework on a stock, analyzing its fundamental and technical data, and you are bullish about its potential over the next few months. You decide to buy call options to make the most of your forecast. Over the next few weeks, the stock climbs slightly, and you see the value of your call options declining...
A reverse call ratio spread (call backspread) on BCE Inc. (BCE)
As you can see in the following graph, shares in BCE Inc. (BCE) have been trading in a range of $57 to $59 since mid-November, with points of momentum suggesting a slightly bullish trend. Daily Graph of BCE ($58.19 on Friday, January 13, 2017) We can also see that the stochastic oscillator (the lower indicator) has begun...
Writing covered calls as a hedge against a slight drop in the shares of Sun Life Financial Inc.
Writing covered calls as a hedge against a slight drop in the shares of Sun Life Financial Inc. As can be seen in the following weekly chart, shares in Sun Life Financial Inc. (SLF) have broken out of a range of $35 to $45 that has characterized trading since the beginning of 2014. In principle, $45 should now be a support...
Follow-up #1 – Mixed Horizontal Calendar Spread on Units of XIU
In our article dated November 28, 2016, we established a mixed horizontal calendar spread on units of XIU (the iShares S&P/TSX 60 Index ETF), looking to take advantage of relatively stable prices until the options mature on December 16, 2016. Initial position as at November 25, 2016 (value as at December 16,...
Final follow-up – Profiting from a Potential Drop in the Price of Domtar Corp. Shares
Underlying asset Domtar Corp. (UFS) Domtar is a Quebec paper producer with its head office in Montreal. It is the third largest North American manufacturer of office paper. Domtar also owns forests, which figure among the best managed based on the principles and criteria of the FSC certification and labelling system....
Mixed Horizontal Calendar Spread on Units of XIU
Units of XIU (iShares S&P/TSX 60 Index ETF) closed the week at a price of $22.23, but this was shortly after climbing to $22.50. The RSI indicator and the stochastic oscillator are down slightly, after both giving overbought readings. Although nothing can be said for sure, this situation may indicate that XIU is...
Final Follow-up – Writing Covered Calls on Units of XFN
Underlying Asset iShares S&P/TSX Capped Financials Index The iShares S&P/TSX Capped Financials Index ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P/TSX Capped Financials Index, net of expenses. The index is comprised of constituents of...
Follow-up #4 – A campaign to write put options on POW
Underlying Asset Power Corporation of Canada (POW) Power Corporation of Canada is a diversified international management and holding company. Through its subsidiary, Power Financial Corporation (TSX), it owns interests in companies in the financial services sector in Canada, the United States and Europe. Through its subsidiary...
Getting Paid to Buy XGD
Underlying asset iShares S&P/TSX Global Gold Index Fund (XGD) The iShares S&P/TSX Global Gold Index ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P Global Gold Index, net of expenses. The Index is comprised of constituents of the S&P/TSX Global...
Position Follow-up – Power Corporation of Canada (POW)
Underlying Asset Power Corporation of Canada (POW) Power Corporation of Canada is a diversified international management and holding company. Through its subsidiary, Power Financial Corporation (TSX), it owns interests in companies in the financial services sector in Canada, the United States and Europe. Through its...
Martin Noël
President
Monetis Financial Corporation
410 posts
0 comments
The information provided on this website, including financial and economic data, quotes and any analysis or interpretation thereof, is provided solely for information purposes and shall not be construed in any jurisdiction as providing any advice or recommendation with respect to the purchase or sale of any derivative instrument, underlying security or any other financial instrument or as providing legal, accounting, tax, financial or investment advice. Bourse de Montréal Inc. recommends that you consult your own advisors in accordance with your needs before making decision to take into account your particular investment objectives, financial situation and individual needs.
All references on this website to specifications, rules and obligations concerning a product are subject to the rules, policies and procedures of Bourse de Montréal Inc. and its clearinghouse, the Canadian Derivatives Clearing Corporation, which prevail over the content of this website. Although care has been taken in the preparation of the documents published on this website, Bourse de Montréal Inc. and/or its affiliates do not guarantee the accuracy or completeness of the information published on this website and reserve the right to amend or review, at any time and without prior notice, the content of these documents. Neither Bourse de Montréal Inc. nor any of its affiliates, directors, officers, employees or agents shall be liable for any damages, losses or costs incurred as a result of any errors or omissions on this website or of the use of or reliance upon any information appearing on this website.
BAX®, CADC®, CGB®, CGF®, CGZ®, LGB®, MX®, OBX®, OGB®, OIS-MX®, ONX®, SCF®, SXA®, SXB®, SXF®, SXH®, SXM®, SXO®, SXY®, and USX® are registered trademarks of the Bourse. OBW™, OBY™, OBZ™, SXK™, SXJ™, SXU™, SXV™, Montréal Exchange and the Montréal Exchange logo are trademarks of the Bourse. All other trademarks used are the property of their respective owners.
© 2024 Bourse de Montréal Inc. All Rights Reserved.