Stock options
Strategy to profit from the tensions with China
Martin Noël
Recent events in the news have led us to analyze a stock discussed in our last article. As the following chart shows, the price of shares in Canada Goose Holdings (GOOS) has plummeted by over 20% in the turmoil surrounding the Huawei affair in which, following the arrest of Huawei’s Chief Financial Officer, China called for a...
Selling call options at resistance
Martin Noël
As we can see from the following chart, the share price of Canada Goose Holdings Inc. (GOOS) just hit the $90 resistance level after a major 50% rally in just one month. We can also see that the RSI (5) has fallen, while the stochastic indicator shows it is in overbought territory (%K ). This situation is an indication of a...
Writing covered calls is like collecting monthly rent from your tenant
Montréal Exchange
Owning an income property has its pros and cons. As a landlord, it gives you the right to collect monthly rent. You can also offset your rental income from the property’s related expenses. Plus, the property has potential value growth. Owning a rental property is a winning strategy on many levels. But there are also some...
Getting Paid With the Intention of Buying Shares
Martin Noël
As the following chart shows, the price of shares in Canadian Tire Corporation Limited, Cl. A (CTC.A) plunged 20.6%, from a peak of $183.93 on August 8 to its recent trough at $146.08 on October 11. It has since climbed to just above $150, allowing us to use this trough as a short-term support level. An investor who is...
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...
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...
Commitment to Buy Stock Through a Ratio Spread
Martin Noël
As you can see in the following chart, the price of shares in Canopy Growth Corporation (WEED) appears to be stabilizing, for now, in a range between a high of $74.45 reached on September 5, 2018 and its most recent low of $52.80, reached on September 14. We can also see that its high of $48.72 on June 22 may represent a...
How to benefit from the rising vapors of cannabis
Martin Noël
The cannabis market has been booming since August 15, 2018 when Constellation Brands Inc. announced a major $5 billion investment in Canopy Growth Inc. (WEED). Since then, the stock has shot up 132.6% from a low of $32.01, and it recently topped out at $74.45. Its closest competitor, Aurora Cannabis Inc., has ridden the same...
Options in a Recessionary Market
Jason Ayres
Many investors are becoming increasingly concerned that a recession may be on the horizon as North American markets continue to climb higher despite global trade concerns. A recession is defined as a temporary economic decline during which trade and industrial activity is reduced. It is typically identified by a fall in Gross...
Writing put options based on a 50-day moving average
Martin Noël
As the following graph shows, the stock of Colliers International Group (CIGI) has begun a slight correction following a strong bullish trend that began in February, and it has now landed right on its 50-day moving average. Its RSI and the stochastic oscillator are trending upwards, so the bullish trend will be confirmed if the...
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