For example: You see a credit spread with a market of $1.00 bid and $1.60 ask. There is little chance of selling the spread and collecting $1.45 or $1.50 (unless…
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Investing
There are benefits to delta-neutral trading. One of the primary benefits is that it can help you minimize your risk. By hedging your portfolio against directional risk, you can reduce…
Looking at a common situation, suppose that you have written a covered call. You owned 300 shares of YFS (Your Favorite Stock Inc.), watched it rally, and finally decided that…
For example, if the SPDR S&P 500 ETF (SPY) trades at $396 per share, we expect a significant move in the S&P 500. Still, we’re unsure of the direction of…
When I first started trading, online brokers were just starting to emerge, and my choices were limited. I remember spending hours watching CNBC, trying to absorb as much information as…
A winning ratio is simply a number of winning trades divided by the total number of trades. For example, a trader who won 15 out of 20 trades would have…
Options provide investors with the ability to proactively hedge their portfolios against potential market crashes. In this article, we will discuss the importance of being proactively hedged in an options portfolio. Why to…
In this article, we’ll discuss these differences and how they affect you, so you can discover how to avoid potentially costly problems. Differences There are four key differences between…
This is the list of my favorite Options Trading books: The Rookie’s Guide to Options by Mark D. Wolfinger Learn to use options from veteran option trader Mark…
First, online banking allows for split-second transfers from one bank to another bank or financial institution. Second, unlike the Depression, this silent bank run has been gradual and lacks media…