Bullish Outlook
Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation
Martin Noël
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...
Have the Tides Turned for the Troubled Goldcorp?
Patrick Ceresna
The last few years have been a struggle for Goldcorp investors. The company has been overshadowed by declines in earnings, falling gold production and increased costs. Many investors have abandoned the stock for other gold miners with more momentum. Yet there are a number of green shoots that suggest the management is...
Bulling the Market with a Ratio Call Spread
Patrick Ceresna
Investors have had a good run over the last two months as we have seen the Canadian TSX 60 index roar higher 9% from a September low of 877.00 to its highs near 955.00. The question on everyone’s mind – is it over or is there more room to go? Is it too late to buy or should an investor wait on the sidelines for a...
Dollarama: Context on Trading the Stock vs. Options
Patrick Ceresna
Dollarama has been a bright spot in the Canadian markets throughout the last year. During the first half of the year, the share price has been working considerably higher off its $93.27 52-week low. Recently investors were rewarded when the company released its 2nd quarter results and subsequently announced plans to buy...
A Repair Strategy for Loblaws Companies Limited stock
Martin Noël
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...
Making the most of a potential rebound in shares of Intact Financial Corporation
Martin Noël
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...
Options Brief-Week of August 28
Montréal Exchange
Everyone looks forward to something for different reasons. When investors choose to invest in a company, they will wait impatiently for the most crucial announcement: earnings season. Last week, Royal Bank of Canada (TSX:RY) reported a strong third quarter which led to a dividend hike of 5 per cent to 91 cents per share. This...
Making a Bull Spread on CNR Metamorphose Into a Reverse Butterfly Spread
Martin Noël
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 $101.63 and was near its 34-week moving average (34-WMA), which has served as a support point several times in...
Options Brief – Week of July 10th
Montréal Exchange
The airline industry had its share of bad press last week mainly due to the Sunwing incident, but Air Canada still managed to outperform. On Friday, July 7th, its shares price surged to 19.06$, its highest price in the last ten years following a very optimistic Q2 outlook. In the world of options, it represented a great...
Bottom Fishing Cenovus? Hedging may be Appropriate
Patrick Ceresna
Cenovus stirred up the Canadian oil industry back on March 29th with an announcement on the $17.7 billion-dollar purchase of ConocoPhillips’ Canadian oil sand assets. To say the deal was not well received is an understatement as the stock dropped over 10% on the announcement and continued to actively distribute lower. From...
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