The Montreal Exchange (MX) offers users an online tool to help understand and calculate the theoretical value of options. Known as the Montreal Exchange option calculator, users can take advantage of a free offering to better understand potential investment returns and risk management decisions. Montreal Exchange option...
In our previous articles, we explored various aspects related to index futures including index arbitrage. In this article, we explore another possible use of an index future namely hedging. As global stock markets have skyrocketed since the deepest trough of the pandemic, the internet is flushed with articles citing...
Canadians over the age of 18 can take advantage of multiple investment and saving plans to secure their financial freedom. Two of the more popular saving plans include the Tax Free Savings Account (TSFA) and Registered Retirement Savings Plan (RRSP). Both the TSFA and RRSP offer unique advantages that encourage individuals to...
Options are an underutilized investment tool that is overlooked because they seem complicated and are perceived to be for the exclusive use of professional traders. But once they are properly understood, the average investor may come to realize how options can play a role in their investment strategies. Options Recap An option...
Looking for the best Options articles to read? Below are what most of our readers consider to be the most popular articles of 2021: World’s First Option on Bitcoin ETF Montréal Exchange Canada is the first country in the world to bring ETFs to investors. Once again, Canada has proven itself to be an innovator in capital...
In our previous article, we explored the meaning of index futures and what buying an index and index futures means. In this article, we will explore various challenges and tools pertaining to index futures trading. “Index arbitrage” is a popular strategy to trade index futures. It involves simultaneous buying an index and...
Volatility can strike a stock market with no advance warning, and the average investor might not know how to react. Fortunately, all it takes is some basic knowledge of options to understand how this valuable investment tool can be used to ride through a volatile period. Potential Sources of Volatility Factors that could...
When you sell options, you can collect premiums. But you might be better off selling spreads, just in case the market does not move in your favour. Takeaways: Understand the difference between selling single options and selling vertical spreads Know the risks and benefits of selling single options and selling vertical spreads...
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