Options

Selling put options to profit from rising prices for shares of Agnico Eagle Mines Limited

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. Dai ...

Implementation of a collar to protect profits accumulated in Royal Bank of Canada shares

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 th ...

Understanding Options Vega

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 tha ...

A Repair Strategy for Loblaws Companies Limited stock

Daily graph of L ($67.11 on Tuesday, September 26, 2017) As you can see in the above graph, the price of Loblaws Companies Limited (L) shares fell 18% from a peak of $78.85 on May 8, 2017, and then bottomed out at $64.65 on September 8, 2017. Since then, we have witnessed a tentative rebound tha ...

Making the most of a potential rebound in shares of Intact Financial Corporation

Daily graph of IFC ($100.37 on Wednesday, September 13, 2017)   As you can see in the above graph, the price of shares in Intact Financial Corporation (IFC) fell $3.96 from a peak of $103.03 on September 1, 2017 and then bottomed out at $99.07 on September 12, 2017. We can also see that the RSI ...

Embracing Volatility on a Canadian Disruptor

Fewer topics have been more hotly debated in political (and social) circles then the legalization of marijuana.  Now despite which direction your moral compass points on this, it’s an industry that is here to stay.  In an economic environment where governments continue to look for new ways to g ...

Mixed Long Condor Spread on Shares in Dollarama Inc.

As the following graph shows, the price of shares in Dollarama Inc. have just created a brief trough at $118.81 after having peaked at $132.34 in June 2017. Recently the stock has stayed within this range, closing at $123.80 on August 22, 2017. Over the next few weeks, $125 may act as a resistance ...

TSX ETF investing: 5 tips for successfully picking the right ones

With all the TSX ETF investments available, it’s not too difficult to diversify your portfolio. Here’s how. There are hundreds of ETF opportunities on the Toronto Stock Exchange (TSX) sponsored by investment managers like BlackRock Inc., BMO Asset Management and Horizons ETFs Management. The be ...

Is buying stock options a good investment strategy?

Buying stock options makes your broker happy, but your wallet might feel differently 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 period. Buying stock options generates a lot of brokerage commissions, whic ...

Pat: Can you suggest some U.S. ETFs that are set up to move in the opposite direction of particular stock indexes, rather than in the same direction? Regards.

A: U.S.-based ProShares offers a range of exchange traded funds for U.S. stock indexes. Of these ETFs, the company offers three types: 1) ProShares Short ETFs are designed to move in the opposite direction of the underlying index. For example, ProShares Short S&P500, $32.90, symbol SH on New York, ...