Gold miners – a call seller’s paradise

July 08, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Having traded options for about 20 years, I’ve observed a few patterns about investor behaviour when it comes to volatility. Normally, as equities rise, option pricing tends to relax and compress. Intuitively, this makes sense: when prices are falling and investors get worried, they will scramble to buy protection, thereby, pushing up relative pricing levels for insurance in market selloffs. As stock prices recover, option pricing will relax to reflect that dissipation of fear. Hence, the VIX being nicknamed the ‘fear gauge’ — it tends to rise into market selloffs, and fall as markets recover.

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Trade ahead of Brexit with upside calls

June 22, 2016

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BY: NICK PIQUARD, CFA®, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

The Brexit vote is almost upon us and there is no shortage of opinions on both sides. However, one thing is certain: no matter which camp wins, there will be volatility in the market.

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Is the new FOMC formula going to fail like New Coke?

June 14, 2016

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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Who remembers the introduction of New Coke? If you do, you might be of a certain age. It was created by the Coca-Cola Company to bump up their steadily declining soft drink market share in the mid-1980s. Pepsi was sweeter and Coke figured they needed a similar formulation to grab the attention of a growing segment of younger drinkers.

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Capturing the Canadian-U.S. dollar trade

May 31, 2016
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BY STEVE HAWKINS, CO-CEO, HORIZONS ETFS

In addition to oil, currency is another asset class that is very topical for investors these days. In the last three weeks, the U.S. dollar has had its largest rally since the onset of 2016, up 3.1%, as at May 26, 2016, moving to $1.29 from $1.25 in Canadian dollar terms.

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Grab the Gravol® and Reach for Yield

May 25, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

High price-to-earnings multiples? Deteriorating earnings? No problem it seems. U.S. stocks are near all-time highs and Canadian stocks are making a heck of a comeback. If seesawing markets have had you reaching for Gravol® over the past six months with the fickle day-to-day movements in the market, it’s time to take a deep breath and think about the big picture.

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Time to be a gold bug again?

April 27, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Gold and gold miner stocks were taken to the woodshed in 2013 through 2015. All those trillions in Quantitative Easing dollars (QE) just couldn’t create the widespread inflation that gold investors expected to see. Fast forward to present: gold is zooming in 2016. This has confused more than a few investors who are still bearish on gold as most inflation measures remain in check, in fact, many inflationary forecasts remain lower than they’ve been in many years. They are missing an important point as there has been a sea change in the perception for gold.

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Yellen’s Collar is the new Bernanke Put

April 05, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

I love this idea that the Yellen Collar is the new Bernanke Put. So, instead of a more steadfast speed-infused dose of predictable Quantitative Easing (QE) — rocket fuel to markets for several years now — we look to something a little milder, but all the while still effective in curing your market headaches.

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Why China? Why now?

March 16, 2016
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BY TAMMY CASH, EVP, MARKETING, HORIZONS ETFS

While the Chinese New Year is typically a time for saying goodbye to the woes of winter and welcoming in the spring with new opportunities of happiness and prosperity, this isn’t quite the case for China’s stock markets, which are still grappling with a selloff carried over from 2015.

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