Trading Idea

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...

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5 days 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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2 months ago
Currency Options University
June 20, 2019
Concepts

Currency Options University

Patrick Ceresna

Part 1: Welcome to the world of currencies It is very common for Canadian investors to invest in American stocks. Yet, it is surprising how few retail investors understand the impact currency fluctuations have on their returns. More often than not, investors look at the price fluctuation of an asset price assuming a constant...

410
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2 months ago
Profit from an Increase in Canadian Building Permits
June 05, 2019
Concepts

Profit from an Increase in Canadian Building Permits

Martin Noël

In this article, we analyze changes in Canadian building permits in relation to fluctuations in the price of Richelieu Hardware Ltd. (symbol: RCH) for the period from January 2014 to May 2019. RCH is an importer, distributor and manufacturer of specialty hardware and complementary products. The company’s main source of...

355
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2 months ago
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...

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3 months ago
Renting the Upside of the Canadian Markets
April 12, 2019
Bullish Outlook

Renting the Upside of the Canadian Markets

Patrick Ceresna

The uncertainty for Canadian investors has everything to do with the confusing crosscurrents of a rising stock market but simultaneously a weakening Canadian economy. The outlook for the weakening economy comes right from the top, where the Bank of Canada came out with its rate statement on March 6. The BoC took a dovish...

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4 months ago
What do Cannabis, Nelson Peltz and Hedging Have in Common?
April 04, 2019
Protection

What do Cannabis, Nelson Peltz and Hedging Have in Common?

Jason Ayres

On March 13th, Aurora Cannabis Inc. (TSX: ACB) announced that they had appointed Nelson Peltz as a Strategic Advisor to help explore potential partnerships and advise on the company’s global expansion strategy. This is a big deal given Mr. Peltz’s business history and reputation for delivering results. For more details...

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5 months ago
Bulling the Market with a Ratio Call Spread
November 29, 2017
Bullish Outlook

Bulling the Market with a Ratio Call Spread

Patrick Ceresna

Investors have had a good run over the last two months as we have seen the Canadian TSX 60 index roar higher 9% from a September low of 877.00 to its highs near 955.00.  The question on everyone’s mind – is it over or is there more room to go?  Is it too late to buy or should an investor wait on the sidelines for a...

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2 years ago
A not so TD-ous trade
July 24, 2017
Stock Options

A not so TD-ous trade

Christopher Thom

TD is an extremely well-run bank with diversification across many business lines and geographies. The share price has pulled back from its 52-week high of $71.31 set back in late February by around 8.5%. With shares hovering around the $65 mark, I want to pick up some yield or look to get long the stock at even lower prices. At...

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2 years ago
Bottom Fishing Cenovus? Hedging may be Appropriate
May 10, 2017
Bullish Outlook

Bottom Fishing Cenovus? Hedging may be Appropriate

Patrick Ceresna

Cenovus stirred up the Canadian oil industry back on March 29th with an announcement on the $17.7 billion-dollar purchase of ConocoPhillips’ Canadian oil sand assets. To say the deal was not well received is an understatement as the stock dropped over 10% on the announcement and continued to actively distribute lower. From...

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2 years ago