Revenue

no-cover
May 26, 2020
Concepts

Trading your First Option

Martin Noël

As an investor, the first thing you need to know is how to choose which securities to buy. The second is when to sell them. That’s pretty easy, right? In this article, you will learn how to trade your first option. As you will see, you do not need to be an expert to start trading options. You just need to be familiar with...

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2 days ago
Profiting from the second-wave downturn
April 30, 2020
Bearish Outlook

Profiting from the second-wave downturn

Martin Noël

In a bear market, the lows of the first market downturn are often retested following a rally like the one we have just seen. This article examines how put options can be used to maximize the return on a bearish projection. As can be seen in the following chart, the unit price of the iShares S&P/TSX Capped Financials Index...

464
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1
4 weeks ago
Put-Writing Strategies in the Canadian Market
April 13, 2020
Bullish Outlook

Put-Writing Strategies in the Canadian Market

Patrick Ceresna

The coronavirus crisis has caused massive sell-offs in global equity markets throughout the world.  Canada has not been immune, and our benchmark large-cap S&P TSX 60 Index has lost over 36% from its February high.   CHART 1 – S&P/TSX60 Source: Bloomberg   A move of this magnitude from new highs to a...

608
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1
2 months ago
Making the most of volatility in these uncertain times
March 26, 2020
Bearish Outlook

Making the most of volatility in these uncertain times

Martin Noël

In our last article we discussed how to reduce the risk associated with the time-value decay of options in a directional position. Now we will take advantage of the market meltdown to discuss the implied volatility in the price of an option, how it reflects the degree of market uncertainty over future price movements in the...

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1
2 months ago
Trading Weekly Options on Canada Goose Holdings Inc (GOOS.TO)
January 28, 2020
Neutral Outlook

Trading Weekly Options on Canada Goose Holdings Inc (GOOS.TO)

Mehra Wealth Management Group

Just as a follow up to our block trade on Canada Goose Holdings Inc (GOOS) from November 14, 2019,  the January 17, 2020 $46 strike call options have expired worthless, since the stock traded out-of-the money at market close. Effectively, we have captured the full option premium of $4.31/share and our cost is now reduced to...

678
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Like
4 months ago
Writing covered call options to profit from a period of consolidation
December 03, 2019
Bearish Outlook

Writing covered call options to profit from a period of consolidation

Martin Noël

As can be seen in the following graph, the price trend for shares in the Canadian National Railway Company (CNR) appears to have faltered. The stochastic oscillator indicator has just fallen below 75, much like it did in June 2019. At that time, the price of CNR stayed in a channel for many weeks. As long as the oscillator...

774
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2
6 months ago
Covered Call Block Trade on Canada Goose Holdings Inc (GOOS.TO)
November 14, 2019
Protection

Covered Call Block Trade on Canada Goose Holdings Inc (GOOS.TO)

Mehra Wealth Management Group

For almost 20 years, our team at CIBC Private Wealth has used defensive option strategies including Covered Calls, Selling Covered Puts and Collars to manage client portfolios. Our objective is to generate income from option premium in addition to dividends paid on stocks. Our primary focus is on wealth preservation. A Covered...

1098
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1
7 months ago
Generating Income with Credit Vertical Spreads
August 29, 2019
Bearish Outlook

Generating Income with Credit Vertical Spreads

Tony Zhang

Credit spreads are a popular strategy that is used to generate income with limited risk from a modest bullish, bearish or even neutral view on a stock or ETF. Many investors are attracted to writing higher delta options because of the higher premiums, but it is important to understand the tradeoff, which is that this will risk...

894
1
Like
9 months ago
Top 3 Strategies to Generate Income with Options
July 04, 2019
Revenue

Top 3 Strategies to Generate Income with Options

Tony Zhang

Options can be used to provide an additional income stream for just about any portfolio. Whether you are interested in acquiring an equity position, already own equities, or simply do not wish to own any equities, there are option strategies that are suitable to generate income. In this post, we will explore the top 3 income...

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11 months ago
Options Insights: Trading your First Option
June 25, 2019
Concepts

Options Insights: Trading your First Option

Tony Zhang

Options trading is a skillset that typically takes a few weeks to a few months to learn. The numbers and strategies can be intimidating initially, but don’t be discouraged. If the option chains, Greeks and terminology seem complicated at first, there are tools such as OptionsPlay and ongoing education from the Montréal...

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11 months ago
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