recent posts

no-cover
January 09, 2017
Other

Writing covered calls as a hedge against a slight drop in the shares of Sun Life Financial Inc.

Martin Noël

Writing covered calls as a hedge against a slight drop in the shares of Sun Life Financial Inc. As can be seen in the following weekly chart, shares in Sun Life Financial Inc. (SLF) have broken out of a range of $35 to $45 that has characterized trading since the beginning of 2014. In principle, $45 should now be a support...

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2 weeks ago
Follow-up #1 – Mixed Horizontal Calendar Spread on Units of XIU
January 09, 2017
Other

Follow-up #1 – Mixed Horizontal Calendar Spread on Units of XIU

Martin Noël

  In our article dated November 28, 2016, we established a mixed horizontal calendar spread on units of XIU (the iShares S&P/TSX 60 Index ETF), looking to take advantage of relatively stable prices until the options mature on December 16, 2016.   Initial position as at November 25, 2016 (value as at December 16,...

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2 weeks ago
Why pay more when you can PEY less?
January 05, 2017
Bullish Outlook

Why pay more when you can PEY less?

Christopher Thom

Peyto (TSE: PEY) shares did well in 2016, rising 33.5%, as natural gas prices rose almost 64%. Natural gas accounts for 90% of Peyto’s total production volume.  In my view, the shares are undervalued and could be purchased outright at this level.  However, two issues arise with that idea.  First, we are here to talk about...

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3 weeks ago
Fading the Trump Hysteria
January 05, 2017
Protection

Fading the Trump Hysteria

Patrick Ceresna

The stock markets are first and foremost a behavioral exercise.   Investors are always trying to price in the future – 6 to 9 months in advance.  To put that statement into perspective, one must recognize that the market is therefore driven by perceptions and assumptions more than it is about realized certainties. That...

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3 weeks ago
Final follow-up – Profiting from a Potential Drop in the Price of Domtar Corp. Shares
December 19, 2016
Other

Final follow-up – Profiting from a Potential Drop in the Price of Domtar Corp. Shares

Martin Noël

Underlying asset   Domtar Corp. (UFS) Domtar is a Quebec paper producer with its head office in Montreal. It is the third largest North American manufacturer of office paper. Domtar also owns forests, which figure among the best managed based on the principles and criteria of the FSC certification and labelling system....

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1 month ago
Going Long Volatility
December 09, 2016
Volatility

Going Long Volatility

Alan Grigoletto

No on can accurately predict whether the worst is over or just pausing before stocks make another dramatic move lower. The Long Straddle can be used to take advantage in either outcome. The Long Straddle is composed of a long call option and a long put option. Both options are at the closest At-The-Money-strike (ATM) of the...

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2 months ago
“Buying the Dip” on REITs
December 05, 2016
Bullish Outlook

“Buying the Dip” on REITs

Patrick Ceresna

It is incredible to have witnessed what has transpired in the month of November 2016.  Trump’s victory has spurred a complete 180 degree turn in macro thinking. Some of the great macro men like Ray Dalio, Stanley Drunkenmiller and Jeffery Gundlach have discussed what is now openly believed to be a new growth and inflation...

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2 months ago
Mixed Horizontal Calendar Spread on Units of XIU   
November 29, 2016
Other

Mixed Horizontal Calendar Spread on Units of XIU  

Martin Noël

  Units of XIU (iShares S&P/TSX 60 Index ETF) closed the week at a price of $22.23, but this was shortly after climbing to $22.50. The RSI indicator and the stochastic oscillator are down slightly, after both giving overbought readings. Although nothing can be said for sure, this situation may indicate that XIU is...

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2 months ago