Stock Options

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...

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2 days 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...

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3 weeks ago
Improving order execution efficiency
October 03, 2019
Stock Options

Improving order execution efficiency

Martin Noël

On July 27, 2007, the Montréal Exchange launched a penny trading pilot project that ended on February 26, 2016 with the implementation of a permanent program. Before the pilot project began, only options priced below $0.10 were allowed to trade with a minimum price increment of $0.01 (“penny trading”), while all other...

440
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2 months ago
Enhancing Equity Positions with Options
September 12, 2019
Concepts

Enhancing Equity Positions with Options

Tony Zhang

Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...

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3 months ago
Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times
September 06, 2019
Bearish Outlook

Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times

Antonio Cabeda

Key facts on covered calls This strategy consists of writing a call that is covered by an equivalent long stock position. It represents a simple way for investors to manage their short-term risk exposure, allowing them to earn premium income (i.e. the money received from writing the calls) in return for part of the stock’s...

572
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3 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...

513
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Like
3 months ago
Profiting From Expectations of Relative Stability
August 20, 2019
Concepts

Profiting From Expectations of Relative Stability

Martin Noël

Shares in Cogeco Communications Inc. (CCA) were trading at $104.36 at this writing on August 9, 2019, but as the following graph shows, they jumped on July 10 when the company released its latest financial results. After topping out at $107.05 on July 16, prices moved in a relatively narrow corridor of $103.33 to $107.35....

522
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4 months ago
Minimizing Your Risk with Vertical Debit Spreads
August 14, 2019
Bearish Outlook

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...

779
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4 months ago
Maximizing Technical Analysis with Options Trading
August 06, 2019
Concepts

Maximizing Technical Analysis with Options Trading

Tony Zhang

As a market strategist and practitioner of technical analysis for over a decade, I have spent my share of time studying indicators, price patterns and trading strategies. Having worked with thousands of clients on technical based strategies, I find that the most important aspect of trading is trade and risk management....

601
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4 months ago
Low-Cost Insurance Against a Drop in Share Price
August 01, 2019
Neutral Outlook

Low-Cost Insurance Against a Drop in Share Price

Martin Noël

As the following chart shows, the price of shares in Waste Connections Inc. (WCN), which is trading at $123.70 as these lines are being written on July 25, 2019, has delivered an excellent return of 28.6% since bottoming out at $96.16 on December 24, 2018. The chart shows that the stochastic oscillator (Stoch), an indicator of...

410
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4 months ago