by Andy Chambers What are the differences between purchasing shares of stock compared to purchasing an option contract? Let’s say that you happen to feel that the stock of IBM is likely to increase in value by around 10% during the next six months. You could buy the...
by Dave Caplan A trader may see if current market volatility is high and implied and the historical volatilities are at the upper band of their normal range, and volatility has been rising. He then initiates a “Neutral Option Position.” If the trader has...
by Russell Sands Many of you may already know my disapproval of looking at anything other than direct price action of the market you are trading; to say nothing of my contempt for some of the more ‘exotic’ indicators out there. Well, one of the hot new twists in...
by Ray Frazier You can buy options on most stocks, but without knowing which direction a stock is more than likely to go, you are just guessing... which is inappropriate for anyone that is involved with stocks or options. That’s how so many people lose a great...
by Keith Cotterill Leverage can be your greatest friend, and in the wrong hands your greatest enemy. One obvious example of leverage is the National Lottery. You can pay only $1.00 and have the opportunity to win (through pure luck) millions of dollars,...
by Ellie Taft Do you know what economists mean when they claim Japan is financing the American consumer? The explanation is really quite interesting. Please, allow me… The lending rate at the central Bank of Japan is 0.5%. The US Fed rate was 4.25%,...
by Oliver Velez There are only three things a stock can do; go up, go down, or go sideways. That’s it. There is no other movement possible. In other words, there are primarily three dominant trends in the market: uptrends, downtrends, and sideways trends. An...
by Dan Keen All stock market and options market trading involves the risk of the money that is at play. However, here are five huge benefits of covered call writing that you may wish to consider. Benefit #1: If you buy a stock on the stock market, and that stock...
by Thomas DeMark Short Straddle In a short straddle, the trader believes the market will consolidate or move sideways into the options’ expirations. A short straddle entails the simultaneous sale of a call option and a put option of the same security, strike...
by Jea Yu We have all failed. No one is excluded. The journey is about coming to terms with the truth. The vast majority of traders ultimately blow out. You have most likely blown out once, twice, or more. The reality is that trading is getting...