One asset category that is not very well understood is what we refer to in the business as the credit markets. In the futures market, these encompass all debt instruments such as U.S. Treasury Bills, Notes, and Bonds, and are not limited to derivatives of debt issued by the U.S. treasury.
Risk is one of the most important parts of trading that we must master if we are to have a long consistent trading career.
New traders sometimes have questions as to which supply and demand zones to identify on the charts.
This article looks at the same put strike for a long put and also a short put.
One of the basic directional spreads in trading options is that of the vertical spread. It is extremely versatile and represents a major building block of more complex spreads.
When trading, we want to get complete information and we want it quickly. A type of charting style that can assist us in making those decisions is the Ichimoku chart, also known as a cloud chart.
Have you ever asked a group of people what makes price move in a market? Try it sometime and notice how many different answers you get.
One of the hardest things to figure out is when a stock has changed its "personality."
How can you know how much an option is going to move with respect to said underlying? Very simple ? check out its delta.
What to Know: Discussing crop reports and their impact on the ag options. Breaking down the recent volume trends in corn & wheat options – significant interest in upside protection in corn right now. Many traders, hedgers and speculators migrating into the weekly options vs. longer-term optionsWhat's New: Corn and wheat volatility are on nearly equivalent levels – an unusual development that holds a great deal of potential for options traders. At these price/volatility levels, can wheat be an effective feed substitute for corn? What's on Your Mind? Taking on listener questions
Anyone that decides to take trading to a professional level and not just as something "to dabble in" has to decide in what fashion he will engage the market.
In order to support the point that there are more possible opportunities to benefit from selling options rather than buying them, this article will look into the intricacies of option buying and selling.