How much is cannabis going to cost you?

Edited from thestar ~ Jack Hauen
By Osirustwits


Today October 17th the recreational use of Marijuana has been legalised. As the country becomes even more happier with the 10:17 AM/PM anticipated time for a large cloud to begin over the nation.

How much could it cost you across the country to get "lifted"?

Newfoundland

The cheapest MJ currently on the government-run cannabis website is $5.87 per gram, but it isn’t available for purchase yet. The cheapest one you can buy right now is $7.71 per gram if you buy 3.5 grams at once. Prices will range from $6 to $13 per gram, according to the Newfoundland and Labrador Liquor Corporation.

P.E.I.

The cheapest MJ currently on the government-run cannabis website is $7.83 per gram. Pre-rolled half-gram joints are $5.65 each.

Nova Scotia

There are three levels of cannabis quality in Nova Scotia, as decided by the Nova Scotia Liquor Corporation: “value” ranges from $6.33 to $8.49, “core” goes from $9.00 to $10.98 and “premium” starts at $10.99 and goes up.

New Brunswick

MJ starts at $8.99 per gram online and goes up to $15.50. Pre-rolled half-gram joints are $7.50 each.

Quebec

The government has said that grams will start at just over $5. As of early Wednesday morning, the province’s online store still hadn’t been activated.

Ontario

The cheapest gram of MJ on the Ontario Cannabis Store (OCS) is $7.50, and prices go up to $13.25 per gram. The cheapest half-gram pre-rolled joint is $10.35. Keep in mind the most you can order at one time is 30 grams, in line with the amount you’re allowed to carry under federal law. The OCS also sells more extras and goodies than any other store currently online, from oils and sprays to rolling papers to vaporizers — pick up a hemp wick for $1.95, or a $7 bottle of Orange Chronic glass cleaner.

Manitoba

Six stores have been licensed to open in the province, but retailer Delta 9 is the province’s only online non-medical retailer so far. Delta 9 sells grams online for $12. Of note: the company has partnered with the Pineapple Express delivery service and is promising same-day delivery for orders in Winnipeg.

Saskatchewan

Nothing listed for prices but I think they have always been growing and blowing that "Wheat"

Alberta

The website crashed at the stroke of midnight for several minutes before sorting users into a queue of thousands. Multiple products were already out of stock, but the cheapest MJ available was $9.24 per gram. A half-gram pre-rolled joint is $6.64. Every retailer will have to purchase its cannabis through the Alberta Gaming, Liquor and Cannabis Commission, which will sell it at an average price per gram of $8.90.

British Columbia

Grams of MJ start at $6.99, with a huge variety — more than any other online store right now. Half-gram pre-rolled joints start at $4.20. Ironically clever

Yukon

The government will run one temporary store in Whitehorse, and the online store will open Wednesday morning. They have not released a price list yet.

Northwest Territories

The government is selling through its liquor branch, which lists five MJs and nothing else available for purchase. All three of the cheapest individual grams are “coming soon,” so the least expensive legal gram of weed you can buy in the territory right now is $17.50.

Nunavut

Cannabis will only be available through Tweed, an online retailer with no brick and mortar shops in Nunavut. At this time online ordering wasn’t available on Tweed.

The caveat of this is the looming Canada post strike that is on the table for Monday Oct 22nd 2018, this could impact online prices and delivery times and costs.

Join the discussion as we trade the MJ stocks and talk prices and discounts here.

Updated just to remind you this is the short or squeeze so based on the information here shared in our chatroom our sentiment is to SHORT all MJ stocks

Laddered Puts on $UVXY

Today we are going to do a laddered put set up on the fear index tracker $UVXY.

$UVXY has just recently undergone a R/S and this trade lets us do 3 things
1. Take advantage of the price spike that should normalise
2. Take the trade for less risk than if we went long
3. Get paid a premium rather than paying the premium

The plan on this is 2 things simply IV contracts and $UVXY decays over time. We want that volatility that is what we are really trading on this. If IV is high we want to sell if IV is low we want to buy it.

Short Put Ladder Construction
Sell 1 ITM Put
Buy 1 near ATM Put
Buy 1 OTM Put
To setup the short put ladder, the options trader sells an in-the-money put, buys an at-the-money put and buys another lower strike out-of-the-money put of the same underlying security and expiration date.

Unlimited Downside, Limited Upside Profit Potential
Maximum gain is limited to the initial credit received if the stock price rallies above the upper breakeven point but large unlimited profit can be achieved should the stock price makes a dramatic move to the downside below the lower breakeven point.

The formula for calculating profit is given below:

Maximum Profit = Unlimited
Profit Achieved When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Profit = Lower Breakeven - Price of Underlying


Strikes being $75 short put the $55 long put spread puts me at a risk of $20 between strikes x100
the long $50 says that I expect $UVXY to be more than ($2000-$500 credit) /100

In short I expect if I sell the $75 buy $55 credit spread and buy the $50 with a credit left over $UVXY will be under $35 by contract expiration date.

Another option is if we believe that $UVXY will be lower than $35 by EXP is strongly going to happen

Short Put Ladder Construction
Sell 1 ITM Put
Buy 1 nearer ATM Put
Buy 2 further OTM Puts

Same risk as the spread is $15 with nearly no credit but better chance of higher profit if it does indeed break $35 and keep going.

I don't have a crystal ball and none of this is investment advice just some trade ideas being tossed around in our chatroom to join the conversation there enter here.

Options give you options #TradeSocially 

What Covered Calls and Poor man's Covered Calls?

What is a covered call?

For a covered call, the call that is sold is typically out of the money (OTM). This allows for profit to be made on both the options contract and the stock if the stock price stays below the strike price of the OTM option. If you believe the stock price is going to drop, but you still want to maintain your stock position for the time being, you can sell an in the money call option (ITM). For this you will receive a higher premium on your option trade, but the stock must fall below the ITM option strike price, otherwise the buyer of your option will receive your shares if the share price is above the strike price at expiration (you lose your share position).

This is discussed in more detail in the Risk and Reward section below.

How to Create a Covered Call Trade

1.   Purchase a stock, and only buy it in lots of 100 shares. 

2.   Sell a call contract for each 100 shares of stock you own. One contract represents 100 shares of stock. If you own 500 shares of stock, you can sell up to 5 call contracts against that position. You can also sell less than 5 contracts, which means if the call options are exercised you will retain part of your stock position. In this example, if you sell 3 contracts, and the price is above the strike price at expiration, 300 of your shares will be called away, but you will still have 200 remaining. 

3.   Wait for the call to be exercised or to expire. You are making money off the premium the buyer of the option is paying you. If the premium is $0.10 per share, you make that full premium if you hold option until expiration and it is not exercised. You can buy back the option before expiry, but there is little reason to do so, and thus isn't usually part of the strategy.

Risks and Rewards of the Covered Call Options Strategy

The risk of a covered call comes from holding the stock position, which could drop. 

Your maximum loss occurs if the stock goes to zero. Therefore, you maximum loss per share is:

(Stock Entry Price - $0) + Option Premium Received

For example, if you buy a stock at $9, and receive a $0.10 option premium on your sold call, your maximum loss is $8.90 per share. The option premium reduces your maximum loss, relative to just owning the stock.The income from the option premium comes at a cost though, as it also limits your upside on the stock. 

You can only profit on the stock up to the strike price of the options contracts you sold. Therefore, your maximum profit is:

(Strike Price - Stock Entry Price) + Option Premium Received

For example, if you buy a stock at $9, receive a $0.10 option premium from selling a $9.50 strike price call, then you maintain your stock position as long as the stock price stays below $9.50 at expiration. If the stock price moves to $10, you only profit up to $9.50, so your profit is $9.50 - $9.00 + $0.10 = $0.60. 

If you sell an ITM call option, the price will need to fall below the strike price in order for you to maintain your shares. If this occurs, you will likely be facing a loss on your stock position, but you will still own your shares, and you will have received the premium to help offset the loss. 

The main goal of the covered call is to collect income via option premiums by selling calls against a stock that is already owned. Assuming the stock doesn't move above the strike price, the trader collects the premium and is allowed to maintain the stock position (which can still profit up to the strike price).

Traders need to factor in commission when trading a covered call. If commissions will erase a significant portion of the premium received, then it isn't worth while selling the option(s) and creating a covered call.

Covered call writing is typically used by investors and longer-term traders, and is rarely used by day traders.
For more trade ideas using this join the discussion.