Should you do options trading? + MORE Nov 8th

Options trading has found its place in the do-it-yourself world of young investors, opening possibilities of cashing in on high returns in short order. But it can be a risky game, experts say. Wider access to options trading on DIY platforms has democratized an area of the market once cornered by finance professionals.

What is an option?
An option is a contract to buy or sell a security for a specific price, called the strike price, on or before the option’s expiration date. Options are available for individual stocks, stock indexes, commodities and other securities. They trade on stock exchanges and can be bought and sold both through brokers and self-directed investing platforms.

Read more in the MoneySense Glossary: What is an option?

Why are options popular right now?

Combined with more stock market chatter on social media and market volatility, options trading has gained steam with mom and pop Canadian investors. The trend truly picked up during the pandemic when many were stuck at home and has since continued, with options trading surging 89…

Building financial resilience begins with a clear-eyed view of your financial situation and financial goals. World Financial Group (WFG) periodically conducts an independent study, related to people’s Financial IQ, which assesses the financial resilience of its clients and Canadians in general. In 2023, it found that 32% of Canadian households used their savings to help pay for the rising cost of living. Even though inflation has flattened a bit, the cost of things is still much higher than it was a mere five years ago. According to the WFG study, this increase in daily expenditures is eroding people’s financial resilience, and this type of prolonged pressure puts households at increased financial risk should another crisis hit.

So, what can you do to keep your finances on track when things cost so much? To help you get started, here are seven things that can help you take control of your financial future.

1. Take stock of your financial situation.

The past few years have proven financially challenging for many Canadians…