Options
December – Educational Events
Montréal Exchange
December 3, 2020 Webinar – Selling Synthetic Puts Time : 1:00 p.m. (ET) Speaker: Richard Ho and Chris Thom Language: English Where: Online More information here. December 7, 2020 Webinar – Monthly Market Outlook Time : 12:00 p.m. (ET) Speaker: Tony Zhang Language: English Where: Online More information here....
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...
There’s no free lunch in the market…but is there?
Richard Ho
“There ain’t no such thing as a free lunch.” This old adage refers to the idea that it is impossible for anyone to get something for nothing. Even if something is free, someone somewhere is paying for it. However, investors have the choice to either accept a price or not, that is why we have limit orders. Imagine if...
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...
Reduce the Risk Associated with Time Value Decay
Martin Noël
Reduce the risk associated with time value decay In this article, we will examine how to reduce the risk associated with the time value decay of options in a directional position, as well as how this affects the strategy’s payoff profile. As can be seen in the following chart, the price of shares in BCE Inc. (BCE) have...
Entering Options Orders and Managing Positions
Tony Zhang
Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures and best practices for...
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