Options

Making the most of volatility in these uncertain times

In our last article we discussed how to reduce the risk associated with the time-value decay of options in a directional position. Now we will take advantage of the market meltdown to discuss the implied volatility in the price of an option, how it reflects the degree of market uncertainty over fut ...

April – Educational Events

April 8, 2020 Webinar – Covered Calls Time : 4:30 p.m. (ET) Speaker : OIC instructor Language: English Where : Online More information here.   April 15, 2020 Webinar – Protective Puts & Stock Repair Strategies Time : 4:30 p.m. (ET) Speaker : OIC instructor Language: English Where : Online M ...

Filing your clients’ 2019 taxes: what’s new and noteworthy

The Thursday, April 30 tax filing deadline for individuals is coming up fast. Here’s a summary of new limits, new rates, tax changes and new services. Tax filing season is upon us, and the first thing to note is the filing deadline: Thursday, April 30. For business owners and their spouses, the t ...

March – Educational Events

March 11, 2020 Webinar – Options Premium and Pricing Time : 4:30 p.m. (ET) Speaker : OIC instructor Language: English Where : Online More information here.   March 18, 2020 Webinar – Weeklys, Monthlys and LEAPS® Time : 4:30 p.m. (ET) Speaker : OIC instructor Language: English Where : Online M ...

Reduce the Risk Associated with Time Value Decay

Reduce the risk associated with time value decay In this article, we will examine how to reduce the risk associated with the time value decay of options in a directional position, as well as how this affects the strategy’s payoff profile. As can be seen in the following chart, the price of shares ...

Shares in Uranium Participation Corp are trading at a discount

Uranium Participation Corporation (Symbol U on the TSX exchange) is a company that invests in uranium. Uranium presents an attractive investment opportunity at this time. The commodity itself is currently trading at below the cost of production for most miners, a situation that cannot continue inde ...

Currency Options University — Part 7

Currency Hedging for US Dollar Investors For the past decade, Canadian investors of US dollar-based assets have had it good. No, they have had it great. Not only have American financial assets been the best performing assets in the major markets, but over that same period the value of the Canadian ...

Do you have too many shares in one company?

Economist and Nobel Memorial Prize winner Harry Markowitz once said that diversification is the only free lunch in finance. In other words, diversification can reduce risk and volatility with no cost or reduction in returns. That is not to say that someone may not get lucky by buying a single stock ...

Currency Options University – Part 5

Currency Hedging for Importers Although USX currency options are often used by speculators interested in expressing a directional view on the USD/CAD exchange rate, they also offer an interesting opportunity for corporations that conduct business in both currencies and are interested in mitigating ...

Currency Options University — Part 6

Currency Hedging for Exporters In the previous post we examined the role that USX currency options can play in hedging a company’s import costs. In this instalment of Currency Options University, we will explore using Montréal Exchange USX currency options to mitigate the risk that Canadian expo ...