Next, let us look at the option chain and instead of focusing on the selection of the strike prices, let us see if there is any premium worthwhile selling…

Every once in awhile, students ask me if it is wise to sell verticals on any given product at any time. The answer is much more complex than a simple yes or no reply. In this article, I will explain my thinking when it comes to selling verticals, either Bull Puts or Bear Calls. For a change, I will not focus in this newsletter on the technicals or fundamentals but instead, I will place my entire center of attention on I.V. (implied volatility) of the underlying and three additional option components.

How to incorporate naked chart reading techniques into your options trading…

In many of my classes, as I go through various option strategies, a question frequently pops up about the married put. The majority of our students are unfamiliar with the intricacies of the married put. Here I am going to explain, in a simple and easily understandable way, what a married put is…

While scanning the Forex news recently, I noticed quite a few disturbing headlines regarding the proliferation of ponzi schemes in the Forex market…

In this episode, Mark is joined by Tom Busby, CEO, DTI Trader. Mark and Tom discuss the current outlook for the VIX in 2009. They also explore ways to use futures contracts to inform your options trading.

Exploring put-call parity on American exercise options…

Comparing synthetic calls and puts…

Exploring married puts vs. Long Calls, the impact of dividends on put/call parity and synthetics…

In order to understand more-complex spread strategies involving two or more options, it is essential to understand the arbitrage relationship of the put-call pair. Puts and calls of the same month and strike on the same underlying have prices that are defined in amathematical relationship.

This week's article will review some of the new regulations affecting retail Forex traders with accounts in the US that took effect in August, 2009. Includes how to use stops and limits after July 31st along with a discussion of FIFO and counter party risk.

Recently, I had lunch with a fellow Forex trader that I met several years ago. During our conversation, I asked him how his trading was going. His answer was "I am still working at getting consistent." I asked him if he had a written plan that included specific trading rules and strategies to accomplish this goal, and he said no. I strongly encouraged him to do this vital task before he took his next trade. I use a mechanical approach to my trading which includes specific rules for trading both a trending market, and a range bound market. My friend continues to look for the Holy Grail, one size fits all type of system that does not exist…