Give Yourself a Trading Edge … Use Implied Volatility, IV Percentile, and IV Rank

Give Yourself a Trading Edge … Use Implied Volatility, IV Percentile, and IV Rank

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...
What is a Calendar Spread?

What is a Calendar Spread?

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...
What does the SKEW Index Mean to Options Traders?

What does the SKEW Index Mean to Options Traders?

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...
Technical Indicators 101:  Bollinger Bands in a Nutshell

Technical Indicators 101: Bollinger Bands in a Nutshell

Bollinger Bands are a technical indicator created by renowned technical trader John Bollinger in the early 1980's. There are numerous publications, as well as John's website www.bollingerbands.com, that go into great detail on this popular tool used by many traders....
Interactive Brokers Increases Margin Due to Brexit

Interactive Brokers Increases Margin Due to Brexit

I remember during market crashes in the past, Interactive Brokers (IB) increased the margin for many products.There was a lot of complaining about it on certain forums but I personally was happy to see the increased margins. As an IB customer myself, I like knowing...