Put Options

How to turn a profit with puts following a technical rejection
October 11, 2018
Bearish Outlook

How to turn a profit with puts following a technical rejection

Martin Noël

How to turn a profit with puts following a technical rejection As the following chart shows, the price of shares in Linamar Corporation (LNR) surged to a resistance level of $65 after a free trade agreement was reached with the U.S., and it has since been on a steady decline. This response, which does not bode well, could bring...

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2 years ago
Perspective on the Volatility on Cannabis Stocks
October 01, 2018
Volatility

Perspective on the Volatility on Cannabis Stocks

Patrick Ceresna

Speculation is enthusiastically running wild in the Canadian cannabis industry over the last 2 years.  This has led to extraordinary volatility and gains for investors who seek a stake in the industry.  For this article I will refrain from offering my opinions to the merits of this investment and rather focus on sizing up the...

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2 years ago
Selecting the Optimal Put Option
May 29, 2018
Technical analysis

Selecting the Optimal Put Option

Martin Noël

As the following graph shows, the price of shares in CGI Group Inc. (GIB.A) has reached an all-time high. We can also see that the RSI (Relative Strength Index) indicator and the stochastic oscillator (%K) are both in oversold territory. In the past, this has been followed by corrections that brought the stock price back down...

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2 years ago
Writing put options on a support level
March 27, 2018
Bullish Outlook

Writing put options on a support level

Martin Noël

As the following graph shows, the share price of Canadian Imperial Bank of Commerce (CM) has been trending downward since the beginning of 2018. When markets closed on Friday, March 23, CM was trading at $114.07. But as we can see, a price range of $112 to $114 has represented a support level from which prices surged twice....

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2 years ago
Buying Put Options to Hedge Shares
March 19, 2018
Protection

Buying Put Options to Hedge Shares

Martin Noël

As the following graph shows, shares in Waste Connections Inc. (WCN) have been rallying since February 6, 2018, when they bottomed out at $81.52. As I write these lines, WCN is priced at $96.67, up 18.58%. The RSI indicator and stochastic oscillator are now in extreme overbought territory. Even though this is not, in itself, an...

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2 years ago
Making the most of a lower price for shares of Dollarama Inc.
February 28, 2018
Technical analysis

Making the most of a lower price for shares of Dollarama Inc.

Martin Noël

As the following graph shows, the share price of Dollarama Inc. (DOL) fell $22.60, from a high of $170.00 reached on January 29 to a low of $147.40 on February 9, 2018. DOL then rallied to $158.97, right up to the level of its moving averages. Since then, the stock has been below its moving averages, and if it continues to...

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2 years ago
A bearish diagonal spread on shares in George Weston Ltd.
February 20, 2018
Bearish Outlook

A bearish diagonal spread on shares in George Weston Ltd.

Martin Noël

As the following graph shows, prices for shares of George Weston Ltd. (WN) have broken below their trough of last September 2017 following a timid attempt at a rebound that lasted four months. Since peaking in January, 2018, WN has followed the general market trend by dropping swiftly, but the rally, which has been anemic, has...

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2 years ago
Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation
January 31, 2018
Bullish Outlook

Writing Put Options to Profit from Higher Prices for Shares of Premium Brands Holdings Corporation

Martin Noël

As the following graph shows, the share price of Premium Brands Holdings Corporation (PBH) has been on a bullish trend, with some more or less large corrections since reaching a plateau in the spring of 2017. Until we see evidence to the contrary, we should assume that this trend will continue for a while. Daily chart as at...

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2 years ago
A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares
December 01, 2017
Neutral Outlook

A horizontal calendar spread to make the most of relatively stable prices for Air Canada shares

Martin Noël

After having peaked at $28.70 in October, the price of shares in Air Canada (AC) seems to have slipped into a short-term trough at the $22 support level. Since then, the price rallied to $26 and, as of this writing, has settled in at around $24. Prices from $22 to $28 now represent a trading range that could contain price...

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2 years ago
Make the Most of a Decline in Canadian Pacific Railway Limited shares
November 21, 2017
Bearish Outlook

Make the Most of a Decline in Canadian Pacific Railway Limited shares

Martin Noël

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock is beginning to show the signs of what looks very much like the early stages of a correction. It is clear that the MACD and RSI indicators and the stochastic oscillator are all in marked decline. If this is the case, the price may fall...

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3 years ago