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What is covered call writing?
September 30, 2022
Other

What is covered call writing?

Montréal Exchange

A covered call strategy consists of an investor selling a call option on a stock that they own. While this may sound complex, covered call strategies are quite simple and suitable for some beginner options investors. A covered call writing strategy offers the investor a form of hedging against downside risk. Essentially, the...

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3 days ago
Three mistakes to avoid when trading options
September 30, 2022
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Three mistakes to avoid when trading options

Montréal Exchange

Option investors of all shapes and sizes, from billionaire hedge fund managers to new investors managing $500, make mistakes. To suggest that it is possible to avoid errors when investing is simply foolish. But what is true is that these investors can take steps to understand how to avoid careless mistakes which minimizes the...

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3 days ago
Should you buy a put option or a call option?
September 29, 2022
Other

Should you buy a put option or a call option?

Montréal Exchange

When determining whether to buy a put or call option, investors owe it to themselves to study and develop their own individual investment strategy, particularly with respect to the options market, which might appear more complex when compared to buying shares. Learn more about buying put options and call...

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4 days ago
Risk and Money Management in Trading
July 28, 2022
Other

Risk and Money Management in Trading

Montréal Exchange

There is always a level of risk when investing in securities, whether it be options, fixed income or forex. The risk associated to each asset class depends on the characteristics of the asset itself and how it is affected by the factors that relate to it. For example, fixed income is generally deemed a very safe asset class...

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2 months ago
The Wheel Strategy
May 09, 2022
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The Wheel Strategy

Tony Zhang

As an equity investor, we are always seeking investment opportunities to maximize capital appreciation and income. Finding a balance between the two can be challenging and many times have significant tradeoffs. However, you can potentially add income to any equity position with options using two strategies to add an income...

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5 months ago
Splitting Shopify May Be a Boon to Options Traders
April 14, 2022
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Splitting Shopify May Be a Boon to Options Traders

Steve Sosnick

By now you almost assuredly know that Shopify (SHOP.TSX) announced a 10:1 stock split effective on a date to be announced.  With that announcement, SHOP joins Alphabet and Amazon in the club of internet stocks with high prices and pending stock splits. Although news of a stock split is generally considered a positive, let’s...

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6 months ago
Why and how to use an Options Calculator
April 04, 2022
Other

Why and how to use an Options Calculator

Montréal Exchange

The Montreal Exchange (MX) offers users an online tool to help understand and calculate the theoretical value of options. Known as the Montreal Exchange option calculator, users can take advantage of a free offering to better understand potential investment returns and risk management decisions. Montreal Exchange option...

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6 months ago
The Secret to Managing Losses and Hitting Home Runs
March 14, 2022
Other

The Secret to Managing Losses and Hitting Home Runs

Montréal Exchange

I have worked as a market strategist for the past 15 years alongside a few thousand retail and institutional investors in foreign currency, futures, equities and options. A common experience amongst self-directed investors is a repetitive string of small winners, followed by a few big losses that wipe out weeks or months of...

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7 months ago
The Importance of Trading Psychology
March 11, 2022
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The Importance of Trading Psychology

Montréal Exchange

As a market strategist for over the past 13 years, I’ve corresponded and provided market color to thousands of retail and institutional investors. In this post, I wanted to share what I have consistently found to be a distinguishable factor that sets successful traders apart. The difference that divides professional traders...

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7 months ago
Index Futures and Hedging
March 09, 2022
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Index Futures and Hedging

Futures First Academy

In our previous articles, we explored various aspects related to index futures including index arbitrage. In this article, we explore another possible use of an index future namely hedging. As global stock markets have skyrocketed since the deepest trough of the pandemic, the internet is flushed with articles citing...

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7 months ago
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