Haskayne students stand out in national options trading competition

At the beginning of February, 85 Haskayne students began competing in the eight-week Montréal Exchange Options Trading Simulation, hoping to distinguish themselves from among the more than 3000 participants from across the country.

This is the sixth edition of the competition which pits students from over 40 universities in 10 provinces against one other in trading based on real market data. Each team is given a virtual cash account of $100,000 to build its options portfolio, and all positions must be liquidated before market close on March 27, 2015. The first-place winner walks away with $10,000, while the second- and third-place winners are awarded $5000 and $2500, respectively.

Haskayne began competing in the trading simulations a year ago, and Brett Lomore, a finance and economics double major, won third place in the fifth edition of the contest last fall.

Lomore, a Calgary native in his fifth year at Haskayne, beat out nearly 1800 teams for the honour. “I have to credit our former TMX ambassador, Graham Freidt, who came out and explained the competition to our options class,” he says. “Also, my friend and fellow double major Darren Dymsky suggested I join up.”

Dymsky and Lomore had also competed in last fall’s BP Trading Competition, in which Lomore finished fourth. “I decided to give it a shot, as there was no risk for me and the competition gave me the opportunity to learn about trading, with the potential for some cash prizes,” Lomore says.

Though Lomore didn’t have much experience going in, he credits his FNCE 445 class for part of his victory. “Futures and Options taught me which options would be best suited to the competition,” he explains. “I learned quickly that as long as you are confident about the direction of the market, options are a really good investment vehicle.” Lomore finished the competition with an 804 per cent return.

Carter Ensign, this semester’s TMX ambassador, encourages students to give the competition a try even if they’re not familiar with options trading beforehand. “The simulator is user-friendly, and we provide guides and tools for students to help them understand options and facilitate their trading,” he says. “It’s a good way to trade without risking your own money, and a practical way to learn the specifics of options compared to the theory we learn at school.”

Both Ensign and Lomore will also be part of Haskayne’s team at the Rotman International Trading Competition later this month, where Haskayne has risen up the ranks year by year, moving from 25th out of 50 teams in 2012 to fifth out of 52 last year. Lomore says he’s nervous but excited for the competition. “I’m confident we can place in the top 10,” he says.

Visit the the Montréal Exchange Options Trading Simulation to learn more, or email the TMX ambassador.