These unique aspects of options help you understand pricing, and are key to planning your trades.Now, let’s resume our discussion with a look at gamma.You know from reading Part 1 that options prices change based on how the underlying security moves.
Happy Thanksgiving From the True Options Team!
Today is, in my opinion, the best U.S. holiday on the calendar.It’s a time where markets are closed, families get together, and all the stresses and challenges that crop up throughout the year melt away…To be replaced with a mountain of stuffed turkey, honey baked ham, and a slew of...
Find Balance in Stocks, Not Your Stomach
Take your pick from any major reason: The Federal Reserve’s uncertain path forward, the federal government’s spending spree on stimulus and infrastructure, supply shortages, the rise and fall of COVID-19 cases… That’s just to name a few, and it’s sending stocks all over the place, I mean look at the...
My Favorite Tool in the Trader’s Swiss Army Knife
Instead, I’ll focus on another use of the Swiss Army knife of trading… Buying index funds on the cheap, and getting paid for the privilege.Let me explain… Stop Trying to Time the Dip Many traders hold index funds.
A Crash Course in Greek
Increased borrowing costs force the price of calls higher in the market maker’s formula.For puts, the model assumes the market maker will short some shares of the stock and receive cash that can then be invested in short-term money market instruments.
Unusual Options Activity: $1.3 Million on 3 Quick Rebounds
They’re all betting on quick rebounds on a variety of sectors.Let’s dive right in… 3 UOA Rebounds to Put on Your Radar Anaplan (PLAN), a cloud-based planning platform company, saw heavy calls pour in after a sharp drop that hit the stock just days ahead of an earnings announcement.One trader...
This Profit Radar Called the Energy Boom 3 Months Early
So, understanding that power helps me see how powerful Chad Shoop’s Fast Lane Profits strategy is.Chad, with the help of some proprietary code on the Relative Rotation Graph, effectively uses radar technology to find trading opportunities.He’s able to chart specific stocks relative to the indexes they’re in, or sectors relative to a...
The 401K Is Dead. Long Live Risk.
They’d get a high-paying job in the field of their dreams and the debt would just be a speed bump.They got scammed.We now have a generation of young people mired in student loan debt, while the feds continue to gift corporations with low interest rates and free money to buy...
What the Profit Radar and Weather Patterns Have in Common
Peaks are the “good economy,” where unemployment is low and investment is high, and troughs are times when unemployment is high, and businesses suffer.Economists have long sought to tame the business cycle.
Disney and PayPal Disappoint: Time to Prepare for the Worst?
In today’s video, Ted and Clint give you six strategies to hedge against a market correction so that you can stay ahead no matter what.