Options

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, ...

Writing Calls Covered by Long-Term Call Options on CM Shares

As the following graph shows, share prices for Canadian Imperial Bank of Commerce (CM) peaked in February 2017, after which they fell by almost 15% to settle at around $104. Since then, CM is up slightly and trying to break through $110, but this resistance level may be difficult to breach, since ...

Q: What’s a cheap way for me to profit from any further increases in the Canadian dollar against the U.S. dollar? What about the recent rise for several other widely traded currencies against the U.S. dollar?

A: CurrencyShares Canadian Dollar Trust, $78.79, symbol FXC on New York (Shares outstanding: 2.5 million; Market cap: $197.0 million; www.currencyshares.com), is one of a number of CurrencyShares ETFs offered by Guggenheim Partners. These ETFs rise in value when the U.S. dollar falls and drop when ...

Q: What’s a cheap way for me to profit from any further increases in the Canadian dollar against the U.S. dollar? What about the recent rise for several other widely traded currencies against the U.S. dollar?

A: CurrencyShares Canadian Dollar Trust, $78.79, symbol FXC on New York (Shares outstanding: 2.5 million; Market cap: $197.0 million; www.currencyshares.com), is one of a number of CurrencyShares ETFs offered by Guggenheim Partners. These ETFs rise in value when the U.S. dollar falls and drop when ...

Making a Bull Spread on CNR Metamorphose Into a Reverse Butterfly Spread

As shown in the following graph, shares in the Canadian National Railway Company (CNR) have begun a slight correction since peaking at $108.64 at the end of June. When the markets closed on July 24, CNR was trading at $101.63 and was near its 34-week moving average (34-WMA), which has served as a s ...