Stock Options

The Greeks: Delta
March 17, 2017
Concepts

The Greeks: Delta

Martin Noël

In the last few articles, we have seen that there are several variables that have an impact on the value of options. This table illustrates how an increase in one of the variables affects the values of call and put options. As you can see, with all other things being equal, when one of the variables moves, we should expect the...

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1 week 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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4 months ago
The Doubling Strategy
August 29, 2016
Stock Options

The Doubling Strategy

Richard Croft

This week, rather than looking at short term trading opportunities, we will examine a longer term strategy that is not dependent on a directional bet for the underlying stock. What it comes down to is positioning. Is this a stock you would be willing to hold longer term, what role will it play in your portfolio (i.e. risk...

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7 months ago
Capitalizing on a Valeant Effort in a Mundane Market
July 16, 2016
Bullish Outlook

Capitalizing on a Valeant Effort in a Mundane Market

Jason Ayres

I apologize for the title but I couldn’t resist. Valeant Pharmaceuticals International (TSE:VRX) continues to defy broader market complacency. The diversified pharmaceutical company has barely wavered in its price advance since August of 2014. While this trend may be getting a little long in the tooth, the question is whether...

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8 months ago
The Time Horizon Chasm
July 09, 2016
Neutral Outlook

The Time Horizon Chasm

Richard Croft

For the first half of 2015 global financial markets have been obsessed with short term noise. We have witnessed a succession of exacerbated reactions to on again off again negotiations with Greece, waste of time debates on the timing of a Fed rate hike or endless dissections of monthly jobs data where 20% revisions are more the...

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9 months ago
A Bombardier Covered Straddle
April 18, 2016
Stock Options

A Bombardier Covered Straddle

Richard Croft

There is little doubt that Bombardier (TSX: BBD.B, Friday’s close $1.62) is on life support. At issue is the diagnosis. Does the company follow in the footsteps of Blackberry to survive as a shadow of its former self? Or does the company collapse under a mountain of debt and litigation in much the same way as Nortel?...

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11 months ago
What is a Reasonable Rate of Return?
April 14, 2016
Revenue

What is a Reasonable Rate of Return?

Richard Croft

There has been a lot of debate lately about the expected long term performance of equity markets. It comes down to a simple question; what is a reasonable rate of return? To paraphrase Bob Dylan, the numbers; they are a changing! Ask most investors and they will tell you that double digit returns are possible, if not probable....

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11 months ago
Generating Income With a Limited Risk
March 24, 2016
Revenue

Generating Income With a Limited Risk

Jason Ayres

Selling or writing options can be a great way to generate cash flow as a compliment to a diversified investment approach. In general, the strategy involves selling a call or a put and getting paid to take on the obligation to either deliver or purchase the underlying shares at the strike price agreed upon. The objective of the...

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1 year ago