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World’s First Option on Bitcoin ETF
Montréal Exchange
Canada is the first country in the world to bring ETFs to investors. Once again, Canada has proven itself to be an innovator in capital markets by introducing to the world the first physically settled Bitcoin ETF, through Purpose Investments ETF (symbol ticker: BTCC.B/BTCC.U) as well as the world’s first options on bitcoin...
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...
Your Price Is Way Too High: You Need to CUT IT
Richard Ho
Consumers just don’t want to pay full price for anything. There’s always a better deal somewhere out there, or an annual sale just around the corner. As a disciplined consumer, you know how to put the items that you like on your “Wish List” and patiently wait for a sale. This approach can be applied to trading as...
Covered Call on West Fraser Timber
Patrick Ceresna
There is nothing more Canadian than lumber stocks. On the institutional desks, traders often refer to them as trading the “trees.” And no stock is more iconic than West Fraser Timber (symbol WFT). During the March COVID panic, the price of West Fraser fell more than 65%, from a high of $65.11 to a low of $21.60. Chart...
There’s no free lunch in the market…but is there?
Richard Ho
“There ain’t no such thing as a free lunch.” This old adage refers to the idea that it is impossible for anyone to get something for nothing. Even if something is free, someone somewhere is paying for it. However, investors have the choice to either accept a price or not, that is why we have limit orders. Imagine if...
Catching up on what you missed during our Virtual Options Education Day event
Richard Ho
The Canadian options market is vibrant and offers options on over 300 of TSX’s most active and liquid stocks and ETFs. Retail investors who understand how to combine stocks and options strategies have a powerful skill at their disposal. This can diversify their trading strategies to more than just going long or short....
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...
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