Today you will learn about a basic synthetic option position called the synthetic long stock position. You can create a synthetic long stock position to replicate and replace buying stock outright. You also can create a synthetic short stock position to replicate and replace selling stock outright. A synthetic long stock position … [Read more...] about What is a Synthetic Long Stock Position?
Market profile can be used by both short and long term traders. For the most part, market profile is based on information derived from price and volume. Market Profile compiles information from the past and combines it with the present to help forecast the potential future. This information is gathered and provides areas on a … [Read more...] about An Overview of Market Profile and Trading…
I have the greatest respect for Adam Grimes and have known Adam for several years. I am happy to re-publish Adam's article that was originally published at Adam Grimes's blog. Most of Adam Grimes's readers know about the Art and Science of Trading course, but, if you don’t, it’s just about the best education in technical analysis … [Read more...] about Announcing A New Options Course by Adam Grimes
Has the topic of options been a challenge for you to understand? It can be confusing when you first start to learn about options. Once you become more familiar with what an option is and how the pricing is determined, you will feel more comfortable. As you get used to the terms and language of options, you’ll be on … [Read more...] about Some Key Basics To Understanding Stock Option Contracts…
Have you ever been assigned in options trading? Many traders have gone through assignment at some point in their trading life, and it can be an uncomfortable feeling. Today's blog will be a refresher on the "ins and outs" of option assignment. Before I get into the specifics about assignment in options trading, it's … [Read more...] about Understanding Assignment in Options Trading
Iron Condors are a popular options trading strategy used by both professional and retail traders. Today we will cover the basic components of Iron Condors and how they work. There are many variations of Iron Condor strategies; we will discuss the traditional Iron Condor in this article. How an Iron Condor is constructed … [Read more...] about Introducing the Iron Condor
Charles Cottle and Ali Pashaei presented "Surviving and Thriving in Volatile Markets" on Friday. They showed how they navigated the large move down and did well protecting their portfolios. https://www.youtube.com/watch?v=lgySpujdcdE Charles and Ali teach group mentoring classes at Aeromir.com. They are offering 15% to 30% … [Read more...] about Surviving and Thriving in Volatile Markets – Round Table Replay
Scott from StratagemTrade.com presented the Rolling Thunder trade which is used during fast markets to hedge a portfolio of long Deltas or to take a directional opinion. Scott reviewed how the trade works and covered an example with a discussion of different ways to manage and adjust the trade. There was a good Q&A session at the … [Read more...] about Rolling Thunder
Volatility levels are widely used by traders when making a decision to enter or exit a position. Understanding the differences between the various metrics of volatility can help gauge option pricing, and can be essential in your efforts to be more consistently profitable in your trading. Implied Volatility Percentile (IVP) or Implied … [Read more...] about Give Yourself a Trading Edge … Use Implied Volatility, IV Percentile, and IV Rank
Today you will learn about the risk reversal. It can be used to protect or hedge your stock, position, or portfolio. A risk reversal can be useful to guard against a major market move. Risk reversals can also be used as a directional position. A risk reversal can be structured so you do not have to take on a lot of risk. A risk … [Read more...] about What is a Risk Reversal Strategy?