This activity should be considered aggressively bullish volatility and bullish the underlying, although obviously this could be a hedge predicting a top in XLF.
Short-Term Bullish Action in XLF
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Options for Newbies ? Part 1
Options are by far the most versatile trading instrument. There is a lot of money to be made with them, if you do it right. They can be used like an insurance policy, like a lottery ticket, like a bank CD, and many other things besides.
Dynamic Premium
In this article we will explore how premium can change. First we will look at how premium can lose value after only one day due to lack of price action. Secondly, at the end of an option?s contract, near expiry, one would expect to see very skinny premium on out-of-the-money options, yet exactly the opposite might be the truth.
Comparing Bear Call Spreads
This article will look at four different short vertical call spreads on the same underlying in order to distinguish which call spread is most suitable.
A Long Put vs. Vertical Put Spread
This article will focus on comparing a long put versus a vertical put spread.
A Lesson from a Losing Trade
This article shall look at the perfect trade; at least it was perfect until the very last day. We will analyze what could have been done differently versus what actually was done.
Trading Options on the ES or the SPX
A question that puzzles some traders is what are the advantages of trading options on the S&P 500 futures versus the S&P 500 cash-settled index?
Position Sizing by Using Max Loss: Part III
The topic of proper position sizing is of utter importance to any trader, option trader or not; therefore, we shall delve deeper into this subject and use several mathematical examples from the current market, as the student requested
Should I Sell on Thursday Morning or Friday's Close?
When should an option trader sell weekly option premium?
Importance of Trade Record Keeping
Recently, I had a trader show me his options trades to evaluate and give him some feedback.
Compromises
In this article, I will compare two trades; one mine, and one from a trader who shared his trade with me asking for my take on it.
Keeping Up with Tradition
In all of our OTA courses, regardless of which asset class, we teach the importance of record keeping. For those faithful enough to do this, after several years of trading and recording both winners and losers, you will have a valuable bank of data.