There is one profession in particular that seems to have a special affinity for speculating in the financial markets. These individuals are an extremely bright lot and are known for their sharp analytical skills as well as their acumen for organization (I should know, I have several in my family). If you haven?t guessed by now, I?m referring to engineers.
In this article we will explore how premium can change. First we will look at how premium can lose value after only one day due to lack of price action. Secondly, at the end of an option?s contract, near expiry, one would expect to see very skinny premium on out-of-the-money options, yet exactly the opposite might be the truth.
Let me start this article with a simple question: Did you have any real idea what Forex trading involved before you started doing it?
A pre-market snapshot for Thursday, September 20
I was watching a financial network on TV today and heard the anchor say, ?Good news for investors in Zynga, the shares are up over eight percent today!? A little later she muttered almost under her breath, ?But the shares are still down over 60% year to date.?
I have been writing articles each week to Online Trading Academy members for over two years. My goal is to slowly help the misinformed public gain an edge that levels the playing field in the trading and investing world between the novice hard-working public and ?Wall Street? professionals.
The VIX. The Volatility Index. The Fear gauge. We see that it sits at 14.05, near the lowest levels of the year. This makes many seasoned options traders nervous. The red lights are flashing. Why? Complacency in the market is a very dangerous sentiment and many believe that the markets are whistling past the graveyard.
This article will look at four different short vertical call spreads on the same underlying in order to distinguish which call spread is most suitable.
Quantity vs. QualityHello traders! This week I?d like to discuss a common misconception that new traders have ? that professional traders sit and stare at their computer all day, making dozens of trades during their trading day. In addition, I?ll suggest a progression...
Moving averages are an average of closing prices over a period of time. Many traders try to use them as a dynamic trend line.
Understand a simple truth, most retail traders and investors are not very successful when speculating in markets. Short term traders especially tend to lose money over all.
Losing the QE3 love, post-Apple announcement malaise, Bernake puts, and more.