Stock options

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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1 week 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 weeks ago
Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited
October 30, 2017
Technical analysis

Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited

Martin Noël

As the following graph shows, the price of shares in Agnico Eagle Mines Limited (AEM) appears to be on the verge of an upswing of unknown vigour. This new trend is confirmed by three indicators – the MACD, the RSI and the stochastic oscillator (%K) – that are giving clear signs of strength. Daily chart for AEM ($59.06 on...

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1 month ago
Implementation of a collar to protect profits accumulated in Royal Bank of Canada shares
October 20, 2017
Protection

Implementation of a collar to protect profits accumulated in Royal Bank of Canada shares

Martin Noël

As you can see in the following graph, the price of shares in Royal Bank of Canada (RY), much like the financial sector in general, have shot up over 10% in just six weeks. Even though it is always risky to expect a trend to reverse, such growth cannot continue indefinitely. However, considering that RY just closed at $100.07...

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2 months ago
Understanding Options Vega
October 19, 2017
Concepts

Understanding Options Vega

Alan Grigoletto

Prior to understanding Vega, we need to quickly review option-pricing models. The options pricing models are mathematical formulas that help investors and traders remove the guesswork from determining an options price. The models make some assumptions, primarily that stock prices are random and that only one of the option...

350
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2 months ago
Dollarama: Context on Trading the Stock vs. Options
October 06, 2017
Bullish Outlook

Dollarama: Context on Trading the Stock vs. Options

Patrick Ceresna

Dollarama has been a bright spot in the Canadian markets throughout the last year.  During the first half of the year, the share price has been working considerably higher off its $93.27 52-week low.  Recently investors were rewarded when the company released its 2nd quarter results and subsequently announced plans to buy...

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2 months ago
A Repair Strategy for Loblaws Companies Limited stock
September 28, 2017
Bullish Outlook

A Repair Strategy for Loblaws Companies Limited stock

Martin Noël

Daily graph of L ($67.11 on Tuesday, September 26, 2017) As you can see in the above graph, the price of Loblaws Companies Limited (L) shares fell 18% from a peak of $78.85 on May 8, 2017, and then bottomed out at $64.65 on September 8, 2017. Since then, we have witnessed a tentative rebound that could suggest the worst is...

444
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2 months ago
Making the most of a potential rebound in shares of Intact Financial Corporation
September 18, 2017
Bullish Outlook

Making the most of a potential rebound in shares of Intact Financial Corporation

Martin Noël

Daily graph of IFC ($100.37 on Wednesday, September 13, 2017)   As you can see in the above graph, the price of shares in Intact Financial Corporation (IFC) fell $3.96 from a peak of $103.03 on September 1, 2017 and then bottomed out at $99.07 on September 12, 2017. We can also see that the RSI indicator (5)  (the...

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3 months ago
Unintended Consequences of Systematic Covered Call Writing
September 07, 2017
Concepts

Unintended Consequences of Systematic Covered Call Writing

Patrick Ceresna

Enhancing income and returns through covered call writing has become one of the most common strategies being adopted by investors.  Arguably selling calls against shares and ETFs is considered a conservative strategy that almost any Canadian retail investor can access, in and out of their registered accounts. While many...

634
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3 months ago
Options Brief-Week of August 28
August 30, 2017
Bullish Outlook

Options Brief-Week of August 28

Montréal Exchange

Everyone looks forward to something for different reasons. When investors choose to invest in a company, they will wait impatiently for the most crucial announcement: earnings season. Last week, Royal Bank of Canada (TSX:RY) reported a strong third quarter which led to a dividend hike of 5 per cent to 91 cents per share. This...

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3 months ago