by Bill Burton | Aug 27, 2016 | Options trading, Trading
One of the advantages of an option based approach to trading is the ability to capitalize on trades that have a statistically well-defined high probability of profit. When events occur with predictable regularity, the knowledgeable option trader can effectively...
by Joanna White | Aug 22, 2016 | Options trading, Trading
What is the VIX? "The VIX Index is an up-to-the-minute market estimate of implied (expected) volatility that is calculated by using the midpoint of real-time S&P 500 Index (SPX) option bid/ask quotes. More specifically, the VIX Index is intended to provide an...
by Joanna White | Aug 16, 2016 | Options trading, Trading
As defined in Investopedia.com, the wash sale rule is an Internal Revenue Service (IRS) rule that prohibits a taxpayer from claiming a loss on the sale or trade of a security in a wash sale. The rule defines a wash sale as one that occurs when an individual sells or...
by Joanna White | Aug 7, 2016 | Options trading, Trading
Several years ago I recall a question that someone wrote to the CBOE's “CBOE – Ask the Institute”, asking if there was a scientific way to manage iron condors, or any type of credit spread. They noted that from their observation, some used the Greeks...