Other
Selling Puts as a Strategy
Patrick Ceresna
I wanted to use this article to review and discuss the end result of the blog I wrote last month on Talisman Energy (TSX:TLM). While there was substantial options activity last month on the stock, our focus was on one particularly large trade which consisted of the selling of 10,000 put contracts of the November $12.50 strike....
TransAlta Signals a Technical Buy
Jason Ayres
This week I’m looking at TransAlta (TSE:TA) as a buying opportunity. Not only did TransAlta options make the most active list last week, an analysis of the price chart reveals a number of technical attributes supporting a continuation to the upside for the stock. TransAlta is a non-regulated electricity generation and...
Tim Hortons Earnings Follow Up
Jason Ayres
Back on October 15th, I wrote about some unusual activity on Tim Hortons options that caught my eye earlier in the week. At the time, I hypothesized that a trader may have created a position to take advantage of the earnings report scheduled to be released on November 7th. While I will provide a brief review of the strategy...
Following Up On Previous Trade Ideas
Richard Croft
Just getting back from holidays makes this a great time to do some follow up on past trade ideas. Most notable among them being the calendar spread on Suncor (See “Calendar Spreads Trough October” – Sept 30–2013). The suggestion was to sell the Suncor November 38 call at 75 cents while simultaneously buying the...
Pop Goes Cameco
Jason Ayres
Today’s market open revealed a boost in activity on Cameco (CCO-TC) option contracts. So far this morning all of the action seems to be favoring the call side. As always, I will stress the importance of understanding that this does not suggest a specific directional bias as options are used to meet a number or investor...
Price Action Discounts Everything: A Look at Enbridge
Jason Ayres
I typically have CNBC running in the background as I go about my daily business. While it provides a certain amount of entertainment throughout the day, I am cautious of ever acting on the observations and recommendations shared by the anchors and guests with out the price action supporting the bias. Yesterday, they were doing...
A Review of the Implied Trading Range
Richard Croft
The price of an option reflects the markets best guess about future volatility. How much the underlying stock is expected to vary from its current price! It’s a fact lost on most traders, who buy calls if they are bullish or puts if they are bearish. But being right about whether the underlying stock will rise or fall...
Locking in Profits on the Canadian Banks
Patrick Ceresna
“October: This is one of the particularly dangerous months to invest in stocks. Other dangerous months are July, January, September, April, November, May, March, June, December, August and February – Mark Twain Here we are in the first week of October and my phone is ringing off the hook with concerned investors...
Option Strategies when you lack Conviction
Richard Croft
Will markets ever get beyond political headlines and other self-inflicted emergencies? Without conviction, we will continue to see directionless markets propelled by emotions. So far we have escaped mass hysteria, which explains why there have been no sustained spikes in volatility. Clearly traders’ lack of conviction has...
Tim Hortons Serves Up Some Unusual Activity
Jason Ayres
On Wednesday October 9th, Tim Hortons (TSE:THI) caught my eye as one of the most active option series trading on the Montreal Exchange. As I cautioned in my previous blog entitled Interpreting Unusual Options Activity this is not a mechanism for establishing a directional bias, however, it can be a starting point for uncovering...
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