Options

Trading Weekly Options on Canada Goose Holdings Inc (GOOS.TO)

Just as a follow up to our block trade on Canada Goose Holdings Inc (GOOS) from November 14, 2019,  the January 17, 2020 $46 strike call options have expired worthless, since the stock traded out-of-the money at market close. Effectively, we have captured the full option premium of $4.31/share and ...

Hedging with Delta

As can be seen in the following chart, the price of shares in National Bank of Canada (NA) recently peaked at $73.22, representing an increase of 21.85% in 110 days, for an annualized rate of return of 72.50%. It is unlikely that this pace of growth can be sustained over an extended period of time ...

Year-End Opportunity in Cannabis Stocks?

Through 2018 and into the first quarter of 2019, Canadian marijuana companies represented one of the hottest sectors in the equities market.  However, since its March 19, 2019 high of $23.87, the Horizons Marijuana Life Science ETF (HMMJ) has been on a steady decline, and by November 19, 2019 it w ...

Test your knowledge of how options trading works and make better investments

We think this quiz on how options trading works will serve to increase your investing knowledge, so you can profit more through making better buying decisions Stock options are investment products that give you the right, but not the obligation, to buy a stock for a fixed price, within a fixed time ...

Writing covered call options to profit from a period of consolidation

As can be seen in the following graph, the price trend for shares in the Canadian National Railway Company (CNR) appears to have faltered. The stochastic oscillator indicator has just fallen below 75, much like it did in June 2019. At that time, the price of CNR stayed in a channel for many weeks. ...

Currency Options University – Part 4

Directional Trading with USX Currency Options Our focus in Part 4 of the series is to demonstrate how USX currency options can be used for directional trading through the direct purchase of a call or put option. Options offer investors a way to buy a long position with a defined risk (limited to th ...

Covered Call Block Trade on Canada Goose Holdings Inc (GOOS.TO)

For almost 20 years, our team at CIBC Private Wealth has used defensive option strategies including Covered Calls, Selling Covered Puts and Collars to manage client portfolios. Our objective is to generate income from option premium in addition to dividends paid on stocks. Our primary focus is on w ...

Impact of the Exchange Rate on Our Investments in the United States

Given our proximity to the United States and/or for purposes of geographic diversification, many investors have investments in their portfolios that are priced in U.S. dollars. As with all investments, U.S. equities carry market risk, and it is important to carefully analyze securities so as to min ...

Replacing Stock with Longer
Dated Options

Long-dated options (options expiring in more than 9 months) provide a cost-effective way of gaining long-term exposure to stocks with a smaller capital outlay and limited risk. The average price of a stock in the TSX 60 has almost doubled in the last decade. This translates to significantly more ca ...

Entering Options Orders and Managing Positions

Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures ...