Stock options

Purchasing put options based on a bearish flag
August 14, 2018
Bearish Outlook

Purchasing put options based on a bearish flag

Martin Noël

As the following graph shows, in July 2018, Shopify Inc. cl. A (SHOP) reached a double peak at around $230. This slowed its momentum, with the stock subsequently falling to $172.90 to climb back up to its current level, $195.81, by Friday, August 10, 2018. This rally, which looks very much like a bearish flag, may be...

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6 years ago
Resource Investing with Long-term Options
August 01, 2018
Protection

Resource Investing with Long-term Options

Patrick Ceresna

Old Truism: “A bear market is the author of a bull market and a bull market is the author of a bear market”.    During our interview on MacroVoices with resource investing legend Rick Rule, Rick made a core observation that natural resource investing is different than most mainstream forms of investing. To paraphrase,...

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Writing call options on a second peak
July 25, 2018
Neutral Outlook

Writing call options on a second peak

Martin Noël

As the following graph shows, the price of shares in Restaurant Brands International Inc. (QSR) has performed very well since bottoming out at around $68 in April 2018. QSR is trading at $85.20 at this writing, so it is near its previous high, in the $86 to $88 range. As we can see, the overbought and negative divergence...

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6 years ago
Selecting the Optimal Call Options
July 10, 2018
Bullish Outlook

Selecting the Optimal Call Options

Martin Noël

As the following chart shows, the price of shares in Rogers Communications Inc. cl. B (RCI.B) has just broken through $63, which has been a major resistance level since April. While there can be no guarantees, this bullish trend could take the stock to another resistance level over the next few months, at around $70.  ...

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6 years ago
Setting up a bear call spread hedge using call options
July 04, 2018
Bearish Outlook

Setting up a bear call spread hedge using call options

Martin Noël

As the following graph shows, the price of shares in Canadian Pacific Railway Limited (CP) has just fallen below its 13 and 34-day moving averages and appears to be stabilizing at around $240. The graphs also show that the stochastic oscillator (the bottom graph) is clearly trending downward. Even though the stock may rally, it...

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6 years ago
Taking advantage of a bull triangle
June 20, 2018
Technical analysis

Taking advantage of a bull triangle

Martin Noël

As the following graph shows, the price of shares in Colliers International Group (CIGI) has clearly been on a bullish trend since the stock bottomed out at $58.51 on September 19, 2017. We can see that the 200-day moving average (in red) provided support when the price fell in February 2018, and that, throughout the series,...

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6 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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6 years ago
Using call options as a hedge
May 16, 2018
Protection

Using call options as a hedge

Martin Noël

As can be seen in the following chart, the share price of ONEX Corporation (ONEX) has been weak enough to suggest that some caution may be necessary. The Relative Strength Index (RSI), which was recently in oversold territory, is trending downward. The same is true of the stochastic oscillator (%K). Although the scope of the...

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6 years ago
A Bullish Position to Optimize Risk-Reward
April 25, 2018
Bullish Outlook

A Bullish Position to Optimize Risk-Reward

Martin Noël

As the following graph shows, shares in Royal Bank of Canada (RY) veered into correction territory after peaking at $108.52 on January 22, 2018. At the current price of $97.98, the security is down by over 9.7%. With the RSI (Relative Strength Index) indicator on the rise and the stochastic oscillator (%K) indicating that the...

2749
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6 years ago
Taking Advantage of Time Decay With a Mixed Ratio Spread
April 16, 2018
Neutral Outlook

Taking Advantage of Time Decay With a Mixed Ratio Spread

Martin Noël

As you can see in the chart below, the price of Canadian Pacific Railway Limited (CP) stock has stayed within a range of $215 to $240 since October 2017 and $190 to $240 over the last 12 months. While the price could fall back down to $190, equal to a drop of nearly $35 from the current level ($224.16), we also believe that a...

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