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Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation
January 11, 2018
Protection

Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation

Martin Noël

As the following graph shows, the share price of Intact Financial Corporation (IFC) seems to be on a downward trend as it has just broken through its previous trough at around $104. Its stochastic oscillator (%K) and relative strength index (RSI) are also trending downward. Since this bearish trend could take IFC down as far as...

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2 years ago
5 Potential Canadian Market Surprises for 2018
January 04, 2018
Concepts

5 Potential Canadian Market Surprises for 2018

Patrick Ceresna

What better way to wrap up the 2017 year than with a market forecast.  As a trader, I always look at a forecast as establishing a baseline from which to build investment themes for the upcoming year.  The obstacle however, lies in that there is substantial herding in economic forecasting and rarely does an analyst stick their...

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2 years ago
Profiting on a higher share price for Franco-Nevada Corp.
January 03, 2018
Technical analysis

Profiting on a higher share price for Franco-Nevada Corp.

Martin Noël

As you can see in the following graph, the price of shares in Franco Nevada Corp. (FNV) appears to have stabilized at around $99, just above the $95 support level, after having fallen almost systematically since November 28 when it peaked at $110.18. This decline pushed the stochastic oscillator, shown at the bottom of the...

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2 years ago
A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares
December 01, 2017
Neutral Outlook

A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares

Martin Noël

After having peaked at $28.70 in October, the price of shares in Air Canada (AC) seems to have slipped into a short-term trough at the $22 support level. Since then, the price rallied to $26 and, as of this writing, has settled in at around $24. Prices from $22 to $28 now represent a trading range that could contain price...

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2 years 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
Make the Most of a Decline in Canadian Pacific Railway Limited shares
November 21, 2017
Bearish Outlook

Make the Most of a Decline in Canadian Pacific Railway Limited shares

Martin Noël

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock is beginning to show the signs of what looks very much like the early stages of a correction. It is clear that the MACD and RSI indicators and the stochastic oscillator are all in marked decline. If this is the case, the price may fall...

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3 years ago
Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited
October 30, 2017
Technical analysis

Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited

Martin Noël

As the following graph shows, the price of shares in Agnico Eagle Mines Limited (AEM) appears to be on the verge of an upswing of unknown vigour. This new trend is confirmed by three indicators – the MACD, the RSI and the stochastic oscillator (%K) – that are giving clear signs of strength. Daily chart for AEM ($59.06 on...

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3 years ago
A Quick Guide to Volatility and Options Skew
October 23, 2017
Volatility

A Quick Guide to Volatility and Options Skew

Alan Grigoletto

In my last article, entitled Understanding Vega, we examined how Vega measures the changes in option pricing relative to changes in implied volatility. In today’s article I will delve a little deeper into volatility and its impact across the options chain. There are actually two types of volatility that option traders need to...

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3 years ago


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