Call Options

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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2 weeks 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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2 weeks 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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1 year 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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1 year 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...

768
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1 year ago
Writing Call Options to Protect a Position  
July 09, 2019
Protection

Writing Call Options to Protect a Position  

Martin Noël

As the following graph shows, shares in the Bank of Montreal (BMO) has been in correction territory since falling below the 13 and 34-day moving averages. The stock’s last rally toward $101 is similar to one near the end of November 2018, just before the stock plummeted by almost 14% in the space of a few weeks. Furthermore,...

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1 year ago
The Definitive and Practical Guide to Selling Covered Calls
May 08, 2019
Protection

The Definitive and Practical Guide to Selling Covered Calls

Tony Zhang

Many equity investors utilize options to generate income on their portfolio. A covered call is the single most popular options strategy to add income to the existing stocks and ETFs in your portfolio. This simple option strategy only requires 100 shares of a stock or ETF and selling a call option against it to generate yield....

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1 year ago
Options for RRSP and TFSA
March 14, 2019
Concepts

Options for RRSP and TFSA

Jason Ayres

It’s that time of year again, where investors thoughts turn to RRSP and TFSA contributions and taking advantage of growing their portfolio in a tax-sheltered or tax-free way. There are many ways to approach portfolio management. Often, when you ask a cross section of self-directed investors their answers will vary. Some...

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2 years ago
Selling call options at resistance
November 29, 2018
Technical analysis

Selling call options at resistance

Martin Noël

As we can see from the following chart, the share price of Canada Goose Holdings Inc. (GOOS) just hit the $90 resistance level after a major 50% rally in just one month. We can also see that the RSI (5) has fallen, while the stochastic indicator shows it is in overbought territory (%K ). This situation is an indication of a...

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2 years ago
Navigating a Slippery Slope
November 28, 2018
Bullish Outlook

Navigating a Slippery Slope

Jason Ayres

As I begin to write, oil has suffered a precipitous top to bottom (bottom? maybe) decline of over 30% from the high this year.   What drove it higher? The most common answer has been the possibility of U.S. sanctions on Iran.  This caused significant concern of a shortage in supply. A market fearful of an oil shortage...

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2 years ago
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