Post-Election Lessons in Volatility

November 17, 2016
Post-Election Lessons in Volatility 

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

Early in November, I suggested that investors consider adding Horizons BetaPro S&P 500 VIX Short-Term Futures™ Inverse ETF (HVI) to their portfolios. It was for a good reason: option pricing, and importantly downside put skew, was very high. In fact, it was much higher than the actual market movement indicated was ‘fair’. So, as I said to Bloomberg, “fade the fear, markets will digest it.”

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Donald Trump is President-Elect. What Now?

November 11, 2016
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BY: MARK NOBLE, SENIOR VICE-PRESIDENT AND HEAD OF SALES STRATEGY, HORIZONS ETFS

Similar to the Brexit vote back in June, the surprise election of Donald Trump as the President of the United States on November 8th put global stock markets into a tailspin overnight. The following day, the U.S. stock market bounced back to finish the day on a positive note.

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Be Prepared — With a Complete Picture of Volatility

October 20, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Most people know the Scout’s motto: “Be Prepared”.This isn’t just good advice for impressionable young men; it’s a great way to face most tasks in life. Trading options is no exception.

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The Option Cashman — I turn your sentiment into CASH—Ohh Yeah!

September 21, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Have you seen and appreciated the promotional brilliance of Toronto’s Russell Oliver, a.k.a. “The Cashman”? If not, he’s the uber-extroverted and seemingly omnipresent tv commercial personality who has been urging us to sell him our gold for decades.

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Hedging Your Currency Risk Exposure

September 12, 2016
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BY: STEVE HAWKINS, CO-CEO, HORIZONS ETFS

Last year, many Canadian investors were punished for hedging the United States dollar (USD) risk exposure in their portfolios. However, we’re witnessing a reverse trend so far this year, where hedgers are seeing better returns

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When It Comes to Skews, The Devil is in the Details

September 02, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

Option-implied volatility is a complicated sounding term that simply describes current option pricing levels. It is one of the most important inputs to watch when trading options, but most novice traders tend to focus too much on at-the-money pricing levels.

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What "tell" are options markets showing us?

August 03, 2016
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BY: HANS ALBRECHT, CIM®, FCSI, VICE PRESIDENT, PORTFOLIO MANAGER AND OPTIONS STRATEGIST, HORIZONS ETFS

In the game of poker, a great way to gain an edge is by effectively reading an opposing player’s “tell”. A tell can be a change in behavior that a player unknowingly exhibits when they perhaps have a good or bad hand, such as scratching their nose or suddenly becoming very serious.

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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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Horizons ETFs is a Member of Mirae Asset Global Investments. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by AlphaPro Management Inc. and Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.

The Horizons Exchange Traded Products consist of the Horizons Index ETFs ("Index ETFs"), Bull Plus and Bear Plus ETFs ("Plus ETFs"), Inverse ETFs ("Inverse ETFs"), VIX ETFs (defined below) and active ETFs. The Plus ETFs and certain other Horizons Exchange Traded Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These Horizons Exchange Traded Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, which, where applicable, are described in their respective prospectuses. Each Plus ETF seeks a return, before fees and expenses, that is either 200% or -200% of the performance of a specified underlying index, commodity or benchmark (the "Target") for a single day. Each Index ETF or Inverse ETF seeks a return that is 100% or - 100%, respectively, of the performance of a Target. Due to the compounding of daily returns, a Plus ETF's or Inverse ETF's returns over periods other than one day will likely differ in amount and possibly direction from the performance of their respective Target(s) for the same period. The Horizons Exchange Traded Products whose Target is the S&P 500 VIX Short-Term Futures Index™ (the "VIX ETFs"), one of which is a Plus ETF and one of which is an Index ETF, as described in their prospectus, are speculative investment tools that are not conventional investments. The VIX ETFs' Target is highly volatile. As a result, the VIX ETFs are not generally viewed as stand-alone long-term investments. Historically, the VIX ETFs' Target has tended to revert to a historical mean. As a result, the performance of the VIX ETFs' Target is expected to be negative over the longer term and neither the VIX ETFs nor their Target are expected to have positive long term performance. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies.

*The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF or returns on investment in the ETF.