What Everybody Ought to Know About Option Synthetics

What Everybody Ought to Know About Option Synthetics

Two definitions of the word “synthetic” are: produced artificially devised, arranged, or fabricated for special situations to imitate or replace usual realities These definitions can describe “Synthetic Positions” in option trading. To understand synthetic...
Using Options For Swing Trading

Using Options For Swing Trading

Steve Spencer at SMB posted a video of how to use options for swing trading. Steve used a synthetic stock position with a split strike, done for a credit. The video was posted at https://www.youtube.com/watch?v=nMq1TZFBToE Is that the best trade we can put on? Steve's...
Consider Sector ETFs as a Portfolio Hedge

Consider Sector ETFs as a Portfolio Hedge

ETFs (Exchange Traded Funds) have increased in popularity among traders of all types since their introduction in the early 1980's.  In a nutshell, Exchange Traded Funds (ETFs) are funds that track indexes such as the S&P 500, NASDAQ, Dow Jones, Russell 2000, etc....
Option Volume and Open Interest; Why Are They Important for Options Traders?

Option Volume and Open Interest; Why Are They Important for Options Traders?

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...
Amy’s Alerts Update

Amy’s Alerts Update

Amy Meissner's 14-day, weirdor and nested iron condor trade alert services have been retired while she works on other strategies. Amy wants to focus on the Weekly Playbook
How the VVIX can be Used as a Barometer in Trading

How the VVIX can be Used as a Barometer in Trading

How the VVIX can be Used as a Barometer in Trading Most traders are familiar with the VIX, which measures the volatility of the S & P 500.  The VIX was introduced in 1993 by the Chicago Board of Options Exchange.  The index measures the 30-day forward...