Call
Long Call Position in Barrick Gold
Patrick Ceresna
Back in August, the investing world was stunned when legendary investor Warren Buffett revealed that he had purchased shares in Barrick Gold (symbol ABX). Up until then, Warren had been considered a “gold skeptic”. In his 2011 letter to shareholders, Buffett wrote the following: The second major category of investments...
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...
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...
Let’s do some exercise: Exercising your options
Montréal Exchange
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...
Stock Repair Strategy Using Options
Patrick Ceresna
The coronavirus crisis seemed to come out of nowhere. It caught retail and professional investors off guard equally. Almost overnight many stocks fell by more than 25%, and although some have managed to recoup their losses over the past few months, many have not. What is an investor to do in such an environment? One could...
Harvesting Premium By Shorting Out-of-the-money Calls
Patrick Ceresna
Have you ever been in the fortunate position of holding a stock that had rallied a long way, but you were concerned it had gone too far too fast, yet you did not want to sell your position? Or, have you ever thought that the market would go sideways for a while, and you did not expect your stocks to rally? Maybe you have seen...
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