Revenue

Writing Put Options on a Support Level
May 16, 2019
Concepts

Writing Put Options on a Support Level

Martin Noël

As the following chart shows, the price of shares in George Weston Limited (WN) is down slightly from its recent high of $102.30, and it could stabilize at a support level of around $98.00. This is close to the current level of its 34-day moving average (on April 29, 2019). Furthermore, we can see that the stock’s RSI 5...

258
0
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1 month ago
The Definitive and Practical Guide to Selling Covered Calls
May 08, 2019
Protection

The Definitive and Practical Guide to Selling Covered Calls

Tony Zhang

Many equity investors utilize options to generate income on their portfolio. A covered call is the single most popular options strategy to add income to the existing stocks and ETFs in your portfolio. This simple option strategy only requires 100 shares of a stock or ETF and selling a call option against it to generate yield....

309
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2
1 month ago
Looking for a Bond Substitute?
February 13, 2017
Dividends

Looking for a Bond Substitute?

Richard Croft

Despite the hype around the Trump Rally, some stocks have been left behind. Notable among the group; BCE Inc. (TMX: symbol: BCE) which closed last Friday at $58.28. Well off the highs of August 2016 when the stock traded above $63 per share.   A growth investor might consider that tragic. However, most investors see this...

1692
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2
2 years ago
Why pay more when you can PEY less?
January 05, 2017
Bullish Outlook

Why pay more when you can PEY less?

Christopher Thom

Peyto (TSE: PEY) shares did well in 2016, rising 33.5%, as natural gas prices rose almost 64%. Natural gas accounts for 90% of Peyto’s total production volume. In my view, the shares are undervalued and could be purchased outright at this level. However, two issues arise with that idea. First, we are here to talk about...

1401
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2 years ago
An Electrifying Yield on a Utility Stock
October 12, 2016
Concepts

An Electrifying Yield on a Utility Stock

Christopher Thom

Utility stocks are often loved by yield investors. They provide steady dividends, are regulated businesses, and are less cyclical. Generally they can be called “boring,” but for the investors who own utility stocks that is what they love about them. We’ve seen this sector do well over the last few decades as interest...

1591
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3
3 years ago
Writing Calls Against ETFs
August 08, 2016
Index Options

Writing Calls Against ETFs

Richard Croft

When most investors think about selling covered calls, they think in terms of writing calls against individual stocks. Less often we think about writing covered calls against exchange traded funds (ETFs). Too bad really, because there are some interesting opportunities in that market space. Trading ETFs reduces the impact of...

1632
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3 years ago
The Covered Strangle is both an Income and Investment Strategy
July 29, 2016
Revenue

The Covered Strangle is both an Income and Investment Strategy

Alan Grigoletto

Canadian investors seeking an index or single stock option strategy may want to consider the covered strangle. It can be employed to enhance yield and provide a strategic means to both add to and exit existing positions. Like any options strategy there are trade-offs, and the covered strangle does pose some risk.   The...

4551
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2
3 years ago
Could Rates Go Lower?
June 13, 2016
Revenue

Could Rates Go Lower?

Richard Croft

Could we see lower interest rates? On the surface it seems counterintuitive with North American rates near zero and a Federal Reserve on a track to normalization. But with some industrialized economies – notably Switzerland, Germany and Japan – issuing debt with negative rates, near zero is beginning to look like the best...

979
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3 years ago
Moving Beyond the Basics with the Covered Call Strategy
June 01, 2016
Neutral Outlook

Moving Beyond the Basics with the Covered Call Strategy

Alan Grigoletto

Once investors learn the basics of both buying and selling calls and puts, the next natural progression is learning how to use options in conjunction with long stock, ETF or Indices. The covered call is a widely used strategy that is appropriate for a neutral or slightly bullish forecast. It is simple in its essence, but like...

3103
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3 years ago
ESP For Option Traders
May 31, 2016
Bullish Outlook

ESP For Option Traders

Richard Croft

A covered call strategy carries about 50% to 70% of the risk associated with a long equity position. We accept that thesis as a rule of thumb, but how does one square that position mathematically? The simple answer is to evaluate the downside protection accorded by the premium. We receive more money and, by extension, more...

1061
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3 years ago