Call Options

How to determine the best options strategy when buying or selling options?
April 23, 2021
Concepts

How to determine the best options strategy when buying or selling options?

TD Direct Investing

This article is sponsored by TD Direct Investing. If you were shopping for a new vehicle, would you pay the sticker price of a car that caught your eye without researching or looking into its features first? How would you know you were getting a fair deal, or if the car would even meet your needs? The same logic applies to...

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2 weeks ago
Options Strategies for Your RRSP and TFSA
February 25, 2021
Concepts

Options Strategies for Your RRSP and TFSA

Montréal Exchange

One of the biggest misconceptions about the Registered Retirement Savings Plan (RRSP) and Tax Free Savings Account (TFSA) is that they can only include cash, stocks, bonds, and other simple assets. But in reality, these savings accounts can hold a wide variety of asset classes, including options. Options Strategy in an RRSP for...

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2 months ago
Considering a Long Call Position in Air Canada
November 16, 2020
Bullish Outlook

Considering a Long Call Position in Air Canada

Patrick Ceresna

The COVID crisis has been especially hard on airline stocks. The stock price of Canada’s largest airline, Air Canada, collapsed from over $50 in January to $10 in March.  Although the stock has recovered somewhat since then, when compared to other equities the bounce has been anemic. Chart 1: Air Canada (symbol AC) over past...

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6 months 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...

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6 months 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...

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7 months ago
Long Straddle with Cineplex
September 11, 2020
Trading Idea

Long Straddle with Cineplex

Patrick Ceresna

Before the corona crisis hit, Cineplex was scheduled to be taken over by UK-based Cineworld Group in a $1.65 billion transaction. Cineworld was going to pay $34 per Cineplex share. However, the closing of the Canadian economy due to the coronavirus crisis led Cineworld to claim that there had been a material adverse change...

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8 months ago
Bear Call Spread in the XIU Market
September 09, 2020
Bearish Outlook

Bear Call Spread in the XIU Market

Patrick Ceresna

The stock market has rallied a long way from the March lows. The iShares S&P/TSX Equity 60 ETF (symbol XIU) is up almost $8 from that scary day on March 23, 2020 when the market reached bottom. The rally has been steady, with few pullbacks. However, it is completely natural to expect that, eventually, there will be a...

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8 months ago
Enhancing Equity Positions with Options
September 12, 2019
Concepts

Enhancing Equity Positions with Options

Tony Zhang

Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...

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2 years ago
Profiting From Expectations of Relative Stability
August 20, 2019
Concepts

Profiting From Expectations of Relative Stability

Martin Noël

Shares in Cogeco Communications Inc. (CCA) were trading at $104.36 at this writing on August 9, 2019, but as the following graph shows, they jumped on July 10 when the company released its latest financial results. After topping out at $107.05 on July 16, prices moved in a relatively narrow corridor of $103.33 to $107.35....

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2 years ago
Low-Cost Insurance Against a Drop in Share Price
August 01, 2019
Neutral Outlook

Low-Cost Insurance Against a Drop in Share Price

Martin Noël

As the following chart shows, the price of shares in Waste Connections Inc. (WCN), which is trading at $123.70 as these lines are being written on July 25, 2019, has delivered an excellent return of 28.6% since bottoming out at $96.16 on December 24, 2018. The chart shows that the stochastic oscillator (Stoch), an indicator of...

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2 years ago
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