Trading Weekly Options on Canada Goose Holdings Inc (GOOS.TO)

Jan 28 19:01 2020 Print This Article

Just as a follow up to our block trade on Canada Goose Holdings Inc (GOOS) from November 14, 2019,  the January 17, 2020 $46 strike call options have expired worthless, since the stock traded out-of-the money at market close.

Effectively, we have captured the full option premium of $4.31/share and our cost is now reduced to $42.19/share. The trade mechanics are below:

Table—Expiration of January $46 strike calls for trade placed on November 13th, 2019 at CIBC Private Wealth

Bought 10000 Shares of GOOS

@ $46.50

Sold 100 Jan 2020 $46 calls (expired)

@   $4.31

Our net cost  (Net Debit)

$42.19/share CAD

Now that there is no option covering the stock, we have decided to take advantage of weekly option premium, by selling calls for January 24, 2020 at $45 strike price. For this option series, we have collected $0.8695/share on January 20th. This represents 1.93% call away return in only 5 days, based on closing price of $45 last business day.

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Option Matters

OptionMatters.ca is a blog about the Canadian options market. OptionMatters focuses on sharing information and insights concerning the use of options in various market conditions. OptionMatters is part of the educational mandate of the Montréal Exchange to assist Canadian's in perfecting their risk management skills.

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