CAE Inc. (TSX: CAE, NYSE: CAE), the provider of flight simulation and training services to commercial and defense clients, has done well since we first recommended the stock in July and has gained almost 40% since its February low. Although the stock is not overly expensive compared to its peers, we think that it would be prudent to protect some of our profits against downside risk.

Option Strategy: Buy to open a protective put option with a strike price of C$18 and a Nov. 18, 2016 expiration at or below C$20 per option (C$0.20 x 100). This is intended for shareholders of CAE who wish to protect their holdings against downside risk.