Call Options
Selecting the Optimal Call Options
Martin Noël
As the following chart shows, the price of shares in Rogers Communications Inc. cl. B (RCI.B) has just broken through $63, which has been a major resistance level since April. While there can be no guarantees, this bullish trend could take the stock to another resistance level over the next few months, at around $70. ...
Setting up a bear call spread hedge using call options
Martin Noël
As the following graph shows, the price of shares in Canadian Pacific Railway Limited (CP) has just fallen below its 13 and 34-day moving averages and appears to be stabilizing at around $240. The graphs also show that the stochastic oscillator (the bottom graph) is clearly trending downward. Even though the stock may rally, it...
Taking advantage of a bull triangle
Martin Noël
As the following graph shows, the price of shares in Colliers International Group (CIGI) has clearly been on a bullish trend since the stock bottomed out at $58.51 on September 19, 2017. We can see that the 200-day moving average (in red) provided support when the price fell in February 2018, and that, throughout the series,...
Timing the Bottom on BCE
Patrick Ceresna
There is no shortage of analysts offering alternating fundamental outlooks for BCE (TSX:BCE). Some concerned with the business model and declining growth rates, others proclaiming the BCE dividend stream to be more sound than owning bonds. Personally, as a trader I look for the tactical play where I can profit from key...
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...
Have the Tides Turned for the Troubled Goldcorp?
Patrick Ceresna
The last few years have been a struggle for Goldcorp investors. The company has been overshadowed by declines in earnings, falling gold production and increased costs. Many investors have abandoned the stock for other gold miners with more momentum. Yet there are a number of green shoots that suggest the management is...
Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation
Martin Noël
As the following graph shows, the share price of Intact Financial Corporation (IFC) seems to be on a downward trend as it has just broken through its previous trough at around $104. Its stochastic oscillator (%K) and relative strength index (RSI) are also trending downward. Since this bearish trend could take IFC down as far as...
Profiting on a higher share price for Franco-Nevada Corp.
Martin Noël
As you can see in the following graph, the price of shares in Franco Nevada Corp. (FNV) appears to have stabilized at around $99, just above the $95 support level, after having fallen almost systematically since November 28 when it peaked at $110.18. This decline pushed the stochastic oscillator, shown at the bottom of the...
Bulling the Market with a Ratio Call Spread
Patrick Ceresna
Investors have had a good run over the last two months as we have seen the Canadian TSX 60 index roar higher 9% from a September low of 877.00 to its highs near 955.00. The question on everyone’s mind – is it over or is there more room to go? Is it too late to buy or should an investor wait on the sidelines for a...
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