Bullish Outlook
A reverse call ratio spread (call backspread) on BCE Inc. (BCE)
Martin Noël
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...
Why pay more when you can PEY less?
Christopher Thom
Peyto (TSE: PEY) shares did well in 2016, rising 33.5%, as natural gas prices rose almost 64%. Natural gas accounts for 90% of Peyto’s total production volume. In my view, the shares are undervalued and could be purchased outright at this level. However, two issues arise with that idea. First, we are here to talk about...
“Buying the Dip” on REITs
Patrick Ceresna
It is incredible to have witnessed what has transpired in the month of November 2016. Trump’s victory has spurred a complete 180 degree turn in macro thinking. Some of the great macro men like Ray Dalio, Stanley Drunkenmiller and Jeffery Gundlach have discussed what is now openly believed to be a new growth and inflation...
Final Follow-up – Writing Covered Calls on Units of XFN
Martin Noël
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...
Pairing Option Strategies with Forecasts
Alan Grigoletto
At the present time, the S&P/TSX Composite is sitting roughly halfway between its 52-week high and low points. Whether your current forecast is glass half empty or glass half full, there are two simple option strategies that Canadian investors can employ for either forecast. The bull call spread, also called a long-call...
The Divergence in Oil and Oil Stocks
Patrick Ceresna
Something weird is happening in the energy markets… Oil and gas stocks seemed to stop caring what oil is doing. The divergences are staggering. What do I mean? Back in May, when crude oil was at its $50+ peak level, there was jubilee amongst investors. It has become consensus that oil has not only bottomed but is discovering...
Capitalizing on a Valeant Effort in a Mundane Market
Jason Ayres
I apologize for the title but I couldn’t resist. Valeant Pharmaceuticals International (TSE:VRX) continues to defy broader market complacency. The diversified pharmaceutical company has barely wavered in its price advance since August of 2014. While this trend may be getting a little long in the tooth, the question is whether...
Gold versus Gold Stocks
Richard Croft
Gold has been on a tear recently. Not because of any real change in supply demand metrics. This is all about defensive positioning against a perceived devaluation of paper currency. In short gold bulls are playing the crisis insurance card… again! I am not about to tell you to buy gold. I’ve talked about it in the past but...
Is it real?
Richard Croft
The TSX composite index finished higher for a third consecutive day. Might have been four had Monday not been a holiday. But… is it real? Mindful that a three-day rally does not make a bull market it appears there has been a major change in sentiment. Rallying in the face of higher oil prices is a shift in sentiment. As is...
ESP For Option Traders
Richard Croft
A covered call strategy carries about 50% to 70% of the risk associated with a long equity position. We accept that thesis as a rule of thumb, but how does one square that position mathematically? The simple answer is to evaluate the downside protection accorded by the premium. We receive more money and, by extension, more...
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