Value stocks, as the name implies, offers investors exposure to a company that is valued at a lower price relative to its fundamentals. Growth stocks often refer to small companies that operate in a new market that is likely to experience higher than average growth rates. Investors may want to seek out a mix of growth and value...
A covered call strategy consists of an investor selling a call option on a stock that they own. While this may sound complex, covered call strategies are quite simple and suitable for some beginner options investors. A covered call writing strategy offers the investor a form of hedging against downside risk. Essentially, the...
Option investors of all shapes and sizes, from billionaire hedge fund managers to new investors managing $500, make mistakes. To suggest that it is possible to avoid errors when investing is simply foolish. But what is true is that these investors can take steps to understand how to avoid careless mistakes which minimizes the...
When determining whether to buy a put or call option, investors owe it to themselves to study and develop their own individual investment strategy, particularly with respect to the options market, which might appear more complex when compared to buying shares. Learn more about buying put options and call...
There is always a level of risk when investing in securities, whether it be options, fixed income or forex. The risk associated to each asset class depends on the characteristics of the asset itself and how it is affected by the factors that relate to it. For example, fixed income is generally deemed a very safe asset class...
By now you almost assuredly know that Shopify (SHOP.TSX) announced a 10:1 stock split effective on a date to be announced. With that announcement, SHOP joins Alphabet and Amazon in the club of internet stocks with high prices and pending stock splits. Although news of a stock split is generally considered a positive, let’s...
The Montreal Exchange (MX) offers users an online tool to help understand and calculate the theoretical value of options. Known as the Montreal Exchange option calculator, users can take advantage of a free offering to better understand potential investment returns and risk management decisions. Montreal Exchange option...
In our previous articles, we explored various aspects related to index futures including index arbitrage. In this article, we explore another possible use of an index future namely hedging. As global stock markets have skyrocketed since the deepest trough of the pandemic, the internet is flushed with articles citing...
Canadians over the age of 18 can take advantage of multiple investment and saving plans to secure their financial freedom. Two of the more popular saving plans include the Tax Free Savings Account (TSFA) and Registered Retirement Savings Plan (RRSP). Both the TSFA and RRSP offer unique advantages that encourage individuals to...
Looking for the best Options articles to read? Below are what most of our readers consider to be the most popular articles of 2021: World’s First Option on Bitcoin ETF Montréal Exchange Canada is the first country in the world to bring ETFs to investors. Once again, Canada has proven itself to be an innovator in capital...