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A Wall of Worry
February 23, 2017
Other

A Wall of Worry

Jason Ayres

There’s an old saying that “markets climb a wall of worry and slide down a slope of hope”. I think many would agree that although both U.S. and Canadian equities continue climb, there’s no shortage of apprehension when discussing how much further the markets can go with out some sort of a correction....

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6 hours ago
Looking for a Bond Substitute?
February 13, 2017
Dividends

Looking for a Bond Substitute?

Richard Croft

Despite the hype around the Trump Rally, some stocks have been left behind. Notable among the group; BCE Inc. (TMX: symbol: BCE) which closed last Friday at $58.28. Well off the highs of August 2016 when the stock traded above $63 per share.   A growth investor might consider that tragic. However, most investors see this...

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1 week ago
Dividend Impact on Options’ Intrinsic Value
February 06, 2017
Other

Dividend Impact on Options’ Intrinsic Value

Martin Noël

As we mentioned in earlier articles, an option’s intrinsic value is the premium value related to the difference between the stock’s price and the strike on the option. VIoa = max(S – X; 0) VIov = max(X – S; 0) In the previous article, we saw that the evolution of interest rates had an impact on the actual value...

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2 weeks ago
Synthetic Stock Positions Within Registered Accounts
February 06, 2017
Bullish Outlook

Synthetic Stock Positions Within Registered Accounts

Richard Croft

As the name suggests, a synthetic stock position is equivalent to a long stock position. Similar risk reward parameters but with some structural advantages for investors who want to utilize the strategy within registered accounts.   In this column, we will focus on Canadian bank stocks. What else is new! Like it or not...

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2 weeks ago
Is the Extreme Bullish Speculation in Oil a Warning?
February 06, 2017
Bearish Outlook

Is the Extreme Bullish Speculation in Oil a Warning?

Patrick Ceresna

The OPEC agreement to cut production back in late 2016 ushered in a further wave of enthusiasm that pushed oil and the energy sector higher, with the belief that the oil bear market was over and long gone.  Coupled with the Trump reflation trade enthusiasm, we have witnessed a very strong finish in 2016.  The price of WTI oil...

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2 weeks ago
Impact of interest rates on the intrinsic value of options
January 31, 2017
Concepts

Impact of interest rates on the intrinsic value of options

Martin Noël

The intrinsic value of an option is the value of its premium related to changes in the underlying stock’s price compared to the option’s strike price. So the intrinsic value of a call option (IVco) is the difference between the market price of the underlying (U) and the strike (X) of the call option, while the intrinsic...

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3 weeks ago
Variables with an impact on the value of options
January 24, 2017
Other

Variables with an impact on the value of options

Martin Noël

You have done your homework on a stock, analyzing its fundamental and technical data, and you are bullish about its potential over the next few months. You decide to write call options to make the most of your forecast. Over the next few weeks, the stock climbs slightly, and you see the value of your call options declining...

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1 month ago
Selecting options expiration dates : Thêta
January 24, 2017
Concepts

Selecting options expiration dates : Thêta

Mariame Cissé

Before selecting an expiration date on an option contract, it is important to review some basic concepts of option trading. Options are perishable Absolutely! Remember that the premium of an option is defined as a tangible value, determined by the relationship between the strike price and the price of the underlying stock (also...

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1 month ago