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Simplifying Complex Orders
Steve Sosnick
One of the best features of options is that they can facilitate a wide variety of strategies. Are you bullish on a stock but don’t expect a rise in volatility? Then a call or put spread might be for you. Do you expect a big move in an ETF, but don’t know which direction is more likely? Then a straddle may be the...
S&P/MX International Cannabis Index now live
Richard Ho
Canada has become a benchmark for the legal cannabis market and 2020 will be a pivotal year for the industry. To enable market participants from around the globe to seize new trading opportunities, MX will launch the S&P/MX International Cannabis Index Futures (SMJ) early 2020. With the ongoing progression of cannabis...
Minimizing Your Risk with Vertical Debit Spreads
Tony Zhang
What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to be profitable, one must predict...
Currency Options University – Part 2
Patrick Ceresna
Part 2: Impact of U.S. Dollar Fluctuation on Canadian Returns I had the opportunity, early in my career, to work at a full-service brokerage at a Tier 1 Canadian bank. I remember back in the day overhearing an investment advisor having an argument with a client about the client’s performance. The client was questioning the...
Options Insights: Top 3 Strategies to Generate Income with Options
Tony Zhang
Want to learn more about Top 3 Strategies to Generate Income with...
Trading your first option
Tony Zhang
Want to learn more about trading your first option?...
Cash Secured Puts: Benefits of Selling Puts
Tony Zhang
Want to learn more about Cash Secured Puts and its...
Monthly Option Insight
Tony Zhang
Want to learn more about Generating Income using Covered Calls? Sign up for a free webinar May 7th 2019 @ 4:15pm ET....
The Greeks: Theta
Martin Noël
This week, we will look at another Greek variable: theta. Theta measures the change in the price of an option following a change in the time remaining to its expiration. You will recall that an option’s premium has two components: intrinsic value and time value. But since an option that has reached expiration has run out of...
Will Volatility Revert to the Mean?
Hans Albrecht
A crucial foundation for understanding how option volatility works is the concept of ‘mean reversion’. For a period, stocks can go up and stay up, and they can conversely go down and stay down. But option pricing will generally have trouble staying high or low for an extended length of time. So why do prices eventually move...
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