by Tom Nunamaker | Aug 26, 2017 | Equities, Futures trading, Options trading
If you remember Black Monday on October 19, 1987, you recall the market declined 22.68% in one day. This was the largest one-day percentage decline in the DJIA. It took until early 1989 for the market to recover to its previous high set in August 1987. In the...
by Joanna White | Aug 19, 2017 | Options trading, Trading
One of the numerous strategies available to traders are vertical spreads. Credit spreads come in two varieties: the Bear Call spread and the Bull Put spread. This article will cover the Bear Call Spread …how they are constructed, how much can be gained, as well as how...
by Tom Nunamaker | Jul 16, 2017 | Options trading, Trading
Dan Harvey, the Iron Condor supertrader, created the popular Weirdor trade several years ago. Jim Riggio, Paul Demers and others modified Dan's Weirdor with different trade management rules. This variation was named the Jeep trade to distinguish it from Dan's Weirdor....
by Joanna White | Jul 15, 2017 | Options trading, Trading
Time decay in options, also called “Theta”, is the measurement of how much the value of an option will lose or gain each day as it gets closer to expiration. Time decay is not linear – the theoretical rate of decay accelerates as the option gets...
by Joanna White | Jan 5, 2017 | Options trading, Trading
The decisions of millions of investors and traders affect the price movements in the options market. There are many useful statistics in addition to price movement that indicate what other market participants are doing. This article will focus on two factors many...
by Joanna White | Dec 27, 2016 | General, Options trading, Trading
Call Options, Put Options, Standard Options and Mini-Options As stated in last week's article “How an Option is Similar to an Insurance Policy, ” the definition of an option is: “An option is a financial derivative that represents a contract sold by...
