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
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
Charles Cottle and Ali Pashaei are presenting a free webinar of how to survive and thrive in volatile markets The webinar will be Friday, 18 January 2019 at 11:00am Eastern. >>> Register for the webinar The webinar will be recorded and posted on our YouTube channel. Consider subscribing to our YouTube channel to be … [Read more...] about Surviving and Thriving in Volatile Markets Webinar
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
A calendar spread is a strategy often referred to as a time spread. A calendar is a method which could benefit from the time decay of an option and changes in implied volatility. For the most part a calendar concentrates on the movement of time and volatility more than the movement of the underlying asset. For this reason a calendar … [Read more...] about What is a Calendar Spread?
Marko, from OptionSlam.com, is presenting the Double Eagle Trade on the Aeromir Round Table on Wednesday, 10 October 2018 at 11:00am Eastern. The Double Eagle Trade is a pre-earnings trading discipline with an excellent track record. We know you'll enjoy the presentation. Register for the webinar here Marko is teaching a workshop … [Read more...] about Marko from OptionSlam is presenting the Double Eagle Trade
Gamma, one of the options "Greeks", is often referred to as the Delta of the Delta. Gamma is the rate of change in the delta of an option per a one-point move in the underlying instrument. It is important for traders to understand the effect Gamma can have on their positions. As Gamma increases, it can dramatically affect a position in … [Read more...] about Gamma; How it Can Affect Your Options Positions
Because trends are composed of a series of price swings, momentum can play a key role in determining the strength of the trend. It is important to know when a trend may be slowing down, as it may be indicative of a reversal. How can a trader assess the strength of a trend? Using momentum, along with rate of change and momentum divergence, … [Read more...] about Momentum, Rate of Change, and Divergence … What They Mean to Traders
Intrinsic and extrinsic option values are two components of an option chain which can be very important to an options trader. Knowing the intrinsic and extrinsic option values can help you as an options trader choose a good option candidate with its’ corresponding strike price and expiration. This can be a key factor in laying a … [Read more...] about What Are Intrinsic and Extrinsic Option Values?
In February, 2011, CBOE introduced the S & P 500 SKEW Index, as another means for investors to gauge market volatility and the potential risk of a "black swan" type of event. The SKEW Index is an option-based indicator that measures the perceived tail risk of the distribution of S & P 500 returns in the next 30 days. "Tail risk" … [Read more...] about What does the SKEW Index Mean to Options Traders?