Say you hear a takeover rumor. A $50 stock is rumored to be taken out at $55. Looks like a nice spec trade. You go to the option chain to look for some calls to buy. But, wow!
Hedging Volatility Risk in Take-Over Stocks
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Why Risk it All?
No matter where we come from or what our experiences were beforehand, inevitably we all make the very same mistakes in the markets, most of which are derived from the simple fact that we hate to lose.
The Options Insider Unusual Activity Forum ? Chicago
You asked for it and we listened! Announcing the first-ever Options Insider Unusual Activity Forum. Join Options Insider Founder Mark. S. Longo and a host of options experts as they teach you the skills to track down, analyze and successfully incorporate unusual options activity into your trading.
Super Silver
I see all these articles on selling silver?well I?m a buyer for clients. Silver futures have declined 10% in the last month and are lower by 16% from their highs in the end of November.
Option Block 225: Spreads with Benefits
Click here to access this podcast. Trading Block: The market is apparently shrugging off the Sequester with a mild rally as of mid-day. Implied and realized volatility cross, which is a very rare occurrence. Google feeling the love and broke the 800 level, while Apple...
Cool as ISEE Redux
Traders are facing increased volatility in the markets these days. Wouldn?t it be nice to have an extra odds enhancer that could help you identify when there is a higher probability of a rally day or a pending sell-off?
Volatility Trading Digest – Mighty Dollar
Last weeks’ media chatter about sequestration and the anticipated effects of reduced spending seemed to be overlooking the dollar as it increased against the currencies that make up the US Dollar Index, especially Friday, the first day of implementation. If exchange rates move primarily in response to news that alters expectations about the future economic environment, as theory proposes, then less government spending is good for the economy.
Going Vertical
Today we will begin to look at Vertical Spreads.
Which Do You Hate More?
A common phrase in sports that has been attributed to several people is: ?I hate losing more than I love winning.?
Program Trading and the Markets
While teaching a Professional Trader course in Minneapolis this week, I was demonstrating a technique that can predict with increased probability the morning reversal of the S&P 500 Index due to arbitrage opportunities.
Option Block 224: No Watered Down Options Information
AB may be accused of watering down its beer, but never the Option Block all stars
Equity Index Futures
There are many quality futures markets around the world. We trade most of the big ones at Online Trading Academy. However, the most popular futures markets are the Equity index futures.