Options

Improving order execution efficiency

On July 27, 2007, the Montréal Exchange launched a penny trading pilot project that ended on February 26, 2016 with the implementation of a permanent program.[1] Before the pilot project began, only options priced below $0.10 were allowed to trade with a minimum price increment of $0.01 (“penny ...

October – Educational Events

October 1st, 2019 Webinar: OptionsPlay – Options 101: How to Profit from Bullish and Bearish Markets Time: 4:15 p.m. Speaker: Tony Zhang Where: Online Language: English More information here.   October 15, 2019 Webinar: OptionsPlay – Entering Options Orders & Managing Positions Time: 4:15 p. ...

Enhancing Equity Positions with Options

Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors lookin ...

Covered Calls: Managing Risk Exposure and Generating Value During Volatile Times

Key facts on covered calls This strategy consists of writing a call that is covered by an equivalent long stock position. It represents a simple way for investors to manage their short-term risk exposure, allowing them to earn premium income (i.e. the money received from writing the calls) in retur ...

Currency Options University

Part 3: Specifications of USX Options To summarize, in Part 1 we reviewed the macro drivers that influence a currency’s value, and in Part 2 we focused on the impact of those changes in the currency’s value on investors. The focus in Part 3 will be on understanding the specifications of Canadia ...

Currency Options University – Part 3

Part 3: Specifications of USX Options To summarize, in Part 1 we reviewed the macro drivers that influence a currency’s value, and in Part 2 we focused on the impact of those changes in the currency’s value on investors. The focus in Part 3 will be on understanding the specifications of Canadia ...

Generating Income with Credit Vertical Spreads

Credit spreads are a popular strategy that is used to generate income with limited risk from a modest bullish, bearish or even neutral view on a stock or ETF. Many investors are attracted to writing higher delta options because of the higher premiums, but it is important to understand the tradeoff, ...

Profiting From Expectations of Relative Stability

Shares in Cogeco Communications Inc. (CCA) were trading at $104.36 at this writing on August 9, 2019, but as the following graph shows, they jumped on July 10 when the company released its latest financial results. After topping out at $107.05 on July 16, prices moved in a relatively narrow corr ...

Minimizing Your Risk with Vertical Debit Spreads

What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to b ...

Tech Talk for Monday August 12th 2019

Pre-opening Comments for Monday August 12th U.S. equity index futures moved lower this morning. S&P 500 futures were down 16 points in pre-opening trade. Index futures responded partially to a decline in second half earnings estimates for S&P 500 companies by Goldman Sachs and Citigroup due to poss ...