Options

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 ...

Maximizing Technical Analysis with Options Trading

As a market strategist and practitioner of technical analysis for over a decade, I have spent my share of time studying indicators, price patterns and trading strategies. Having worked with thousands of clients on technical based strategies, I find that the most important aspect of trading is trade ...

Low-Cost Insurance Against a Drop in Share Price

As the following chart shows, the price of shares in Waste Connections Inc. (WCN), which is trading at $123.70 as these lines are being written on July 25, 2019, has delivered an excellent return of 28.6% since bottoming out at $96.16 on December 24, 2018. The chart shows that the stochastic oscil ...

August – Educational Events

July 31st, 2019 Webinar: Understanding options and what they are all about Time: 12:15 p.m. Speaker: Jason Ayres Where: Online More information here.   August 5th, 2019 Webinar: The Montréal Exchange on Options and U.S. Dollar Currency Exposure Time: 12:00 p.m. Speaker: Martin Noël Where: O ...

Tech Talk for Monday July 22nd 2019

Pre-opening comments for Monday July 22nd U.S. equity index futures moved higher this morning. S&P 500 futures were up 9 points in pre-opening trade. Walt Disney gained $1.40 to $141.25 after its latest movie, the relaunched “The Lion King” booked $185 million sales over the weekend in the U.S. ...

Hedging a Portfolio with Options

Hedging a portfolio against a correction in the markets is conceptually easy to understand. However, in practice there are multiple variables to consider and each requires customization based on portfolio sizing and market outlooks. To understand how to execute an efficient hedge on your portfolio, ...

Tech Talk for Monday July 15th

Pre-opening Comments for Monday July 15th 2019 U.S. equity index futures were higher this morning. S&P 500 futures were up 6 points in pre-opening trade. China announced second quarter GDP. Rate of growth on a year-over-year basis dropped to 6.2%, lowest rate of growth in 22 years. Boeing dropped ...

Writing Call Options to Protect a Position  

As the following graph shows, shares in the Bank of Montreal (BMO) has been in correction territory since falling below the 13 and 34-day moving averages. The stock’s last rally toward $101 is similar to one near the end of November 2018, just before the stock plummeted by almost 14% in the space ...