by George Angell There are several factors that affect the overall level of index option prices – the underlying index’s value, the option’s strike price, time until expiration, volatility, interest rates and dividends. The prices of index calls and puts prior to...
by Duane Davis The Fibonacci number sequence is a mathematical cycle that incorporates the expansion and contraction of all elements in nature, from the growth of the smallest leaf on Earth to the largest galaxy in the universe. The Fibonacci number sequence was named...
by Russell Sands As a supplement to the long term trend following approach of the Turtles, I also look at many shorter term indicators. Of everything I’ve examined in the past (and I’ve sifted through a lot of stuff), I personally think that Market Profile is one of...
by Keith Cotterill In order to buy and sell Futures contracts you have to open an account with a registered broker and deposit funds. In futures trading this is known as a “margin” account. Unlike everyday business where companies allow credit, trading...
by Ellie Taft From a practical standpoint, only the highest rated economic reports draw much attention. The rest of the reports can hold less or greater weight, depending on global circumstances at that time. Let’s take a closer look at a few of the more...
by Dave Caplan A trader’s expectation of volatility must dictate his or her strategy, since the flat-price outlook can be traded from either a long or short volatility perspective. What beginning option traders often fail to realize is that, more often than not,...
by Ray Frazier Below is a chart of AOL (America Online). The chart shows a great indicator to use in determining exit points for your options positions (and stock positions). I have plotted two indicators. The first is the 21 bar exponential moving average and is...
by Andy Chambers If you happen to own at least 100 shares of stock, the Exchange will allow you to sell one Call Option for every 100 shares of stock that you own. The advantage of selling a Call option is to increase your earning potential if the market trades...
by Dan Keen Sometimes a stock price may drop significantly before you have time to catch it and react. The best choice in this situation may be to continue writing covered calls but with lower strike prices than you would like, and to get a decent premium....
by Thomas DeMark An option contract holder is bestowed with three choices – exercise the option, let the option expire, or trade the option. But how does a trader decide which of the three alternatives to choose? A large portion of this decision is...