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3 weeks agoAugust – Educational Events
29910
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1090 -
2 months agoCurrency Options University
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4 months agoRenting the Upside of the Canadian Markets
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1 year agoResource Investing with Long-term Options
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Writing Put Options on a Support Level
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recent posts
Understanding Credit Spreads and How They Differ from Debit Spreads
Alan Grigoletto
In a previous posting, “Bull Call and Bear Put Spreads, Pairing Option Strategies with Forecasts” we learned how to implement a debit spread for both calls and puts. This week we will examine another form of vertical spreads: credit spreads and how they can be used. Recall that debit spreads are a limited risk transaction,...
Flying with Condors
Alan Grigoletto
In a recent article we discussed how to get long volatility with the Long Option Straddle. In today’s piece we will discuss another less costly way to buy volatility with the Reverse Iron Condor. Condor strategies are named for the narrow-bodied and broad-winged bird that is primarily found in California. When diagramed, the...
Reverse Ratio Call Backspread
Alan Grigoletto
In a previous article, “Bull Call and Bear Put Spreads” investors learned how to construct a simple 1:1 vertical spread. This week we will discuss how a ratio spread can be implemented and the risks and benefits of this strategy. A ratio spread is similar to a vertical spread in that it involves the simultaneous purchase...
Long Call Neutral Calendar Spreads
Alan Grigoletto
In previous submissions we’ve discussed put and call vertical spreads, “Bull Call and Bear Put Spreads”. This week Canadian investors will learn how to construct a calendar spread. The calendar spread is also known as a time spread or horizontal spread. The calendar spread is typically constructed for a neutral outlook...
Making the most of a lower price for shares of Dollarama Inc.
Martin Noël
As the following graph shows, the share price of Dollarama Inc. (DOL) fell $22.60, from a high of $170.00 reached on January 29 to a low of $147.40 on February 9, 2018. DOL then rallied to $158.97, right up to the level of its moving averages. Since then, the stock has been below its moving averages, and if it continues to...
Perspective on Trading Options on Natural Resource Companies
Patrick Ceresna
After our interview with Rick Rule on MacroVoices, I was inspired to share my thoughts on options trading on natural resource companies. At the start of the interview Rick pointed out the unusually cyclical nature of resource investing. Rick went on to elaborate: “…during periods of time when mature natural resource...
A bearish diagonal spread on shares in George Weston Ltd.
Martin Noël
As the following graph shows, prices for shares of George Weston Ltd. (WN) have broken below their trough of last September 2017 following a timid attempt at a rebound that lasted four months. Since peaking in January, 2018, WN has followed the general market trend by dropping swiftly, but the rally, which has been anemic, has...
Risks Stemming from Current Low Volatility Conditions
Patrick Ceresna
Over the last year we have seen an incredible period of low volatility that is arguably building systematic liquidity risks when we enter a period of normalization. These risks were highlighted in the Bank of Canada’s November 2017 Financial System Review. In that review, the BoC discussed the assessment of...
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