Inside Trading

The Ratio Option Spread

The Ratio Option Spread

by Dave Caplan As the market begins to heat up, opportunities to use the “ratio spread” are presented to us. This option strategy has numerous benefits over just a net long or short position. We all know the benefits of buying an option or futures contract that...

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Options: Dual Credit Spread

Options: Dual Credit Spread

by TradeWins Publishing Editors It's a fact that markets often go sideways. These strategies can give you a real trading edge. A Quick Introduction A strategy designed to collect premium from both sides of a market. Dual Credit Spreads are a way to sell out of the...

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Why Bear Markets Happen

Why Bear Markets Happen

Steve Swanson Metaphorically, you could compare bull and bear trends to the seasonal variations of the earth’s annual journey around the sun.  Each day the sun comes up in the east, and at high noon during summer months the full energy of the sun triggers very...

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Managing a Trade

Managing a Trade

by Oliver Velez The title of this lesson really encompasses many topics. I want to focus on the criteria here that determine your profit-to-loss ratio and share size. While this is not the first step in picking a trade, it is the most important. Let's look...

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Symmetrical Triangles

Symmetrical Triangles

by Andy Chambers Symmetrical triangles are great patterns to trade. A symmetrical triangle is a continuation pattern that narrows until it finally erupts in a breakout. The best patterns have five legs, and each leg is smaller than the preceding leg. A move beyond the...

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New Listing on Exchange

New Listing on Exchange

by Tom DeMark Once a stock is listed on an exchange or added to an index, the potential for additional interest is enhanced considerably.  Index funds are required to include in their portfolios all components in various indexes, and margin requirements are often...

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Stock Price Movement

Stock Price Movement

by Rob Roy The more time there is to expiration, the less sensitive the option is to stock price movement.  The less time-to-expiration, the more sensitive the option is to stock price movement.  The reason for this goes back to the Greek Gamma.  The closer to...

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Covered LEAPS

Covered LEAPS

by Dan Keen Some optionable stocks, but not all, have expiration dates that go out one or two years.  These option series are called “LEAPS”, which is an acronym for Long-term Equity AnticiPation Securities.  First introduced in 1990, these long-dated option...

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