Aeromir
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 …
Continue Reading 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 …
Continue Reading 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 …
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Options trading becomes more and more popular every year. The options become more liquid and more traders use them for hedging, speculation, income etc. Weekly options (weeklys), introduced by CBOE in …
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Many investors consider the foreign exchange market (also referred to as Forex or FX) to be one of the most intriguing and exciting markets in the world. The foreign currency market is an extensive …
Continue Reading about Forex 101: Some Basics on Understanding the Foreign Currency Market →
Exchange Traded Funds (ETFs) are funds that track indexes such as the S&P 500, Nasdaq 100, Dow Jones Industrial Average, Russell 2000, etc. When an investor buys shares of an ETF, they are …
Continue Reading about Inverse ETFs; Are They for You? Understanding the Plus’s and Minus’s →
Dan Sheridan posted an article yesterday "Why should Covered Writes be Illegal?" A covered write is more commonly known as a covered call. Dan has an example of XYZ stock (I love XYZ stock...) +100 …
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The ratio backspread is a strategy used by traders to create a position with a limited loss and varying degrees of profit. If the trade goes against you and the position is setup correctly, it can …
Continue Reading about What is a Bull Call Ratio Backspread Option Strategy? →
Those new to options trading may not fully understand the different prices quoted on options contracts. Today we will discuss the basic prices which can appear in the option chain for an option: bid, …
Continue Reading about Bid/Ask and “Spread” Prices … How They Can Affect Your Options Trading →
When I was about six years old, I played a game of chess with my dad after dinner. I always lost. That started changing when I was around ten years old when I started reading chess books. At some …
