When we enter into a long trade, we want to buy at the strongest level of demand in order to have a high probability for success.
S&P 500 Term Structure is Extremely Negative
When I explain to my option mentoring students that just because implied volatility is low, doesn't mean that a calendar is a good idea…its days like yesterday that I am thinking about.
Don't Believe Your Theta
One of the most common mistakes my option mentoring students make is to misunderstand theta.
Will the Silver Rally Begin to Tarnish in the Near-term?
The recent run-up in Silver prices has certainly spiked option volatility, and with the market appearing a bit overbought, at least in the short-term, a bearish short-term trading strategy may be in order.
Physical Delivery or Cash Settled?
Traditionally, Commodity Futures contracts are settled by physical delivery upon expiration.
Baseball, Buying a Car and Trading Iron Condors
To be good at anything requires learning the fundamentals and constantly working on them throughout your career.
Let Them Pay ME… Yeah, Right!
Recently, I received an email that was quite interesting from a student who had a loan with a bank that he wanted the bank to pay for indirectly.
What is Wrong with Your Risk to Reward Ratio?
One of the more common trading rules that traders have in their Trading Plan is to take trades with at least a certain Risk:Reward ratio.
Trend/Counter-trend
"When trading, is it better to trade with the market and longer term trend, or can you ignore it and trade just the short-term?"
Who Really Makes Money?
Have you ever wondered why the percentage of people who fail at trading is so high?
Puts Are For Losers: Reviewing Green Mountain Coffee and Garmin
Setting a stop loss order on a stock that goes down helps protect against "loser" stocks. But if you're stopped out on a stock that ends up winning, well than you're the "loser."
Learn to Adjust Options Positions
Adjusting option positions is an essential skill for options traders. Adjusting options positions helps traders repair strategies that have gone wrong (or are beginning to go wrong) and often turn losers into winners.
