Options

Book Bits | 6 October 2018

● Mastering the Market Cycle: Getting the Odds on Your Side By Howard MarksAdapted excerpt via Bloomberg Every once in a while, when the economy and the markets are humming, there arises another belief that things are now different: that cycles have been put to an end, such that we no longer have ...

Selecting the Optimal Call Options

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 mon ...

Setting up a bear call spread hedge using call options

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 ...

Taking advantage of a bull triangle

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 ...

Selecting the Optimal Put Option

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 broug ...

Canada’s Best Online Brokerages 2018 comparison tool

.db18__header{margin-bottom:2rem}.db18__nav{display:flex;flex-direction:column;justify-content:space-between}.db18__nav_link{flex-grow:1;text-align:center;padding:.4em 1em;margin-top:1rem;background-color:#404142;color:#fff;font-weight:900;font-family:proxima-nova,sans-serif}.db18__nav_link:hov ...

Using call options as a hedge

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) ...

Beginner’s guide to options trading

If you’ve been trading stocks, you should have a pretty good understanding of the mechanics of buying and selling. Getting started with options trading is fairly simple. Here are a few things to know to get started.   Step 1: Setting up an options account with your broker The options account ca ...

Common investment ‘facts’ that don’t stand up to evidence

An excerpt from The Professional Financial Advisor IV (Insomniac Press), a guide that explores the complex relationship between investors and their advisors Daniel Patrick Moynihan gets the credit for having come up with one of my favourite quotes of all time. He said that while people are entitle ...

Chart o’ the Day: The Options Boom

The Wall Street Journal notes that this past quarter has been the best first quarter for trading revenues at the banks and brokers since financial crisis. Overall, U.S. options trading enjoyed its busiest quarter in history, by one measure, according to research from consulting firm Tabb Group and d ...