Bearish Outlook

Purchasing put options or selling call options to protect oneself?
April 11, 2017
Bearish Outlook

Purchasing put options or selling call options to protect oneself?

Martin Noël

Is it better to purchase put options or to sell call options for protection against loss? Many investors ask this question but, in this as in many areas, there is no single right answer. As we have seen in earlier articles, purchasing options has one major disadvantage: the erosion of the time value that must be counterbalanced...

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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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3 months ago
A Put Backspread Strategy on Thomson Reuter Shares (TRI)
October 31, 2016
Bearish Outlook

A Put Backspread Strategy on Thomson Reuter Shares (TRI)

Martin Noël

The price of shares in Thomson Reuters (TRI) has begun to fall, after trading in a range of $53 to $55 since mid-August. Breaking through $53 could result in the security testing a level of $50 and, consequently, $48.   Daily Chart for TRI ($52.31, Friday, October 14, 2016)   To benefit from this scenario, we will...

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6 months ago
Pairing Option Strategies with Forecasts
August 25, 2016
Bearish Outlook

Pairing Option Strategies with Forecasts

Alan Grigoletto

At the present time, the S&P/TSX Composite is sitting roughly halfway between its 52-week high and low points. Whether your current forecast is glass half empty or glass half full, there are two simple option strategies that Canadian investors can employ for either forecast. The bull call spread, also called a long-call...

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8 months ago
The Canadian Bear Market Roars!
February 04, 2016
Bearish Outlook

The Canadian Bear Market Roars!

Patrick Ceresna

I find a sense of irony that investors need to be losing 20% or more on their equity investments before the economic experts feel they can officially conclude that it is a bear market. It makes it almost meaningless to react to the news as often the worst part of the portfolio damage has already occurred. None the less, we find...

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1 year ago
Markets Down… Volatility Up!
February 01, 2016
Bearish Outlook

Markets Down… Volatility Up!

Richard Croft

Worst start for equity markets since 2008! With more to come if you believe the prevailing view on Bay and Wall Street. Simply not enough “blood in the streets” according to the bears. Which itself is an interesting take since no one can provide clarity as to why markets had such a terrible start to the year. Aside from the...

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1 year ago