Stock options
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...
An Iron Butterfly Spread on Shares of Canopy Growth Corporation
Martin Noël
As you can see in the following graph, shares in Canopy Growth Corporation (WEED) have shot up in price since bottoming out at $6.58 in June 2017. This represents more than 600% growth to its recent peak at $44. Since then, WEED has slipped, falling to $29.50 before bouncing back and has been fluctuating in a range that could...
Have the Tides Turned for the Troubled Goldcorp?
Patrick Ceresna
The last few years have been a struggle for Goldcorp investors. The company has been overshadowed by declines in earnings, falling gold production and increased costs. Many investors have abandoned the stock for other gold miners with more momentum. Yet there are a number of green shoots that suggest the management is...
Locking In Profits on a High Flyer
Jason Ayres
Once again, despite the risk of controversy, I find myself compelled to write about pot! In my last article, Embracing Volatility on a Canadian Disruptor, I looked at a couple of ways one might participate in a bullish technical pattern developing in the TSX:WEED price chart. At the time (August 28th, 2017) the shares were...
Writing covered calls as a hedge against a drop in the shares of Intact Financial Corporation
Martin Noël
As the following graph shows, the share price of Intact Financial Corporation (IFC) seems to be on a downward trend as it has just broken through its previous trough at around $104. Its stochastic oscillator (%K) and relative strength index (RSI) are also trending downward. Since this bearish trend could take IFC down as far as...
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...
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...
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...
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...
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...
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