recent posts

There’s no free lunch in the market…but is there?
November 10, 2020
Other

There’s no free lunch in the market…but is there?

Richard Ho

“There ain’t no such thing as a free lunch.” This old adage refers to the idea that it is impossible for anyone to get something for nothing. Even if something is free, someone somewhere is paying for it. However, investors have the choice to either accept a price or not, that is why we have limit orders. Imagine if...

6759
0
Like
2 years ago
Choosing a Call Option Strike Price to Optimize Return
October 23, 2020
Bullish Outlook

Choosing a Call Option Strike Price to Optimize Return

Martin Noël

Are you expecting the price of a security to rise, and you have a target price in mind? In this article, you will learn how to choose the right strike price to optimize your return if the security reaches your target price by the time your call option expires. Analysis of Descartes Systems Group Inc. (DSG) In this article, we...

8709
0
2
2 years ago
Writing covered calls — some points to consider
October 15, 2020
Concepts

Writing covered calls — some points to consider

Martin Noël

Before implementing a covered call writing strategy, investors need to consider several factors in order to make an informed decision. This final article in a series of four articles on covered call writing will discuss the choice of a strike price for a call option as a compromise between the desired level of protection and...

4532
0
2
2 years ago
Let’s do some exercise: Exercising your options
October 13, 2020
Bullish Outlook

Let’s do some exercise: Exercising your options

Richard Ho

In this article, we’ll talk about exercising call options and why investors would want to do so. Read the article to find out the pros and cons of exercising a call option. You discover a pharmaceutical company that trades at $100 a share and has a COVID-19 vaccine in phase 3 clinical testing. It’s extremely promising, but...

4304
0
Like
2 years ago
Filling the Gap with a Long Call Spread
October 09, 2020
Bullish Outlook

Filling the Gap with a Long Call Spread

Patrick Ceresna

During the COVID crisis the stock market declined, but energy stocks were particularly hard hit as the price of oil plunged to levels never before seen.  During the panic selling, one of Canada’s largest energy companies, Suncor Energy (ticker SU) left a gap from $33.52 to $30.19. (A down gap is where the price opens on the...

2935
0
1
2 years ago
Cash-Secured Put Writing on the iShares S&P/TSX Capped Energy ETF
October 05, 2020
Bullish Outlook

Cash-Secured Put Writing on the iShares S&P/TSX Capped Energy ETF

Patrick Ceresna

Although the broad Canadian stock market index has almost recovered to its pre-COVID crisis high, there is one sector that has lagged badly.  The energy sector has not recovered to anywhere near the levels seen in early 2020. Chart 1: iShares S&P/TSX Capped Energy ETF (symbol XEG) 2019-2020 Source: Bloomberg For those who...

3425
0
Like
2 years ago
Writing covered call options to generate more income
September 23, 2020
Concepts

Writing covered call options to generate more income

Martin Noël

With interest rates currently at all-time lows, finding ways to generate income in our security portfolios is a challenge. However, the strategy of writing covered call options (WCCO), whether applied systematically or on an ad hoc basis, allows us to generate additional income through the premiums received. This is the third...

4033
0
2
2 years ago
Catching up on what you missed during our Virtual Options Education Day event
September 22, 2020
Other

Catching up on what you missed during our Virtual Options Education Day event

Richard Ho

The Canadian options market is vibrant and offers options on over 300 of TSX’s most active and liquid stocks and ETFs. Retail investors who understand how to combine stocks and options strategies have a powerful skill at their disposal. This can diversify their trading strategies to more than just going long or short....

1745
0
Like
2 years ago


Scroll Up