Perhaps the most easily understood of the options price influences is the price of the underlying. All stock traders are familiar with the impact of the underlying stock price alone on their trades.
The Influence of Option Prices
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Looking at Euro Currency
There is no denying the trend has been higher as prices have experienced a steady rise since late July. Within that time frame the Euro appreciated 10% but my initial take away is we may have put in an interim top last week.
Before You Dive In, Check the Depth First
I remember a vacation in Aruba where the water was a beautiful turquoise color and you could see the bottom of the ocean, even when the water was twenty feet deep. Diving into water like this reduces the risk of an injury because you can see the ocean bottom. If this were the markets I would say it was a good risk/reward decision.
Zeroing In On a Strategy
As I wrote last week, the three things that change option prices are: underlying price change, the passage of time, and changing implied volatility.
Patience, Discipline and Consistency ? All Rolled Into One
By the time you are reading this article, you are probably getting your affairs in order for the New Year. I have found over the years that I seem to get one or two ?quiet? spots during this time to take a little look over trading and review the plan and business in general.
How Far Do I Look?
I like to use this forum to address some common student questions that I hear. In our courses, we teach students how to identify the highest probability zones in which to enter or exit trades.
The More Things Change, the More They Stay the Same
I remember my days on the trading floor of the Chicago Mercantile Exchange. My job was to facilitate institution order flow.
Silver Moving Up
After establishing a base around $30/ounce just above the 61.8% Fibonacci retracement level silver has started to appreciate.
Getting Familiar With Settlement
One infrequently discussed topic important to understand in becoming familiar with the mechanics of learning to trade options is that of the various settlement issues.
Market Observations
We are nearing the end of the calendar year and also some supply zones on the major equity indexes.
Is There Any Financial Advice That?s Trustworthy?
In the world of investing and trading there?s certainly no shortage of venues that offer up advice of all types. This advice comes in all forms, some very specific in terms of what and when to buy, while other guidance is more broad-based in its approach.
Edging Towards Profitability
Every successful business must have an edge, a consistent source of profitability.