In this article, we'll examine the similarities and differences between the spot forex and forex futures markets…

In this article, we'll examine the similarities and differences between the spot forex and forex futures markets…

The FED lowering it's effective Fed Funds target rate to between 25 bp and zero, and it's sweeping new debt purchase program, sent the euro up by 3-cents in 90 minutes, from roughly $1.38 to over $1.41. In this article we'll look at the EUR/USD pair as well as how to convert forex volatility for your trading range…

In this article, we'll explore a strategy where we not only expect options prices to drop to zero, but we strive for it and position ourselves to take advantage of it with option credit spreads. Why? Because someone else's loss becomes our gain!

Stock splits can happen for a variety of reasons, but even if you're only trading the options, you're still impacted by any changes that happen in the underlying shares. There's no reason to panic, and there's nothing you need to do. But when companies attract big-money investors and share prices start soaring, it's good to know what could be on the horizon for some of your investments.

Fib strategies have become very popular in forex trading. But today there are so many permutations and variations on this basic theme that sometimes the useful aspects of this technique get lost in the shuffle. This question opened the door for what we might call the "Great Fibonacci Debate". Read on…

A typical calendar spread is the sale of a shorter-term option and the purchase of a longer-term one. These spreads often offer the average investor the chance to sell overpriced short-term premium with relatively little risk. We'll kick things off by looking at a simple long at-the-money calendar spread…

A typical calendar spread is the sale of a shorter-term option and the purchase of a longer-term one. These spreads often offer the average investor the chance to sell overpriced short-term premium with relatively little risk. We'll kick things off by looking at a simple long at-the-money calendar spread…

This week I want to talk about the early exercise of options. In order for it to make sense to early exercise an option, there must be some positive cash flow that results from the exercise. We'll look at calls and puts separately to determine when the early exercise is the right way to go.

Since we are in the midst of a credit crisis, our chosen indicator for gauging fear in the current environment is the Ted Spread. Another famous "fear gauge", the CBOE's Volatility Index (VIX), is currently reflecting a slightly more relaxed environment. In this article, we chart the surprising similarities between the VIX and the Ted Spread.

As an options trader, would you like to be able to determine both your profit potential and exactly how much money you're risking? If so, credit spread trading may be for you. When a trader establishes a bearish position using a credit call spread, the premium he pays for the option purchased is lower than the premium he receives from the option sold. As a result, he still brings in money when the position is established, but less than he would with an uncovered position.

As an options trader, would you like to be able to determine both your profit potential and exactly how much money you're risking? If so, credit spread trading may be for you. We'll start by discussing how to use a credit put spread in place of an outright sale of uncovered put options…