This blog has covered day trading and scalping, and of course it has covered the benefits of making long-term investments. What, though, about the missing middle? What happens to the trader who wants to move faster than months but who is not quite caffeinated enough for the life of a day trader? Welcome to swing … Continue reading What is Swing Trading and Is It the Right Options Trading Strategy for You?
Trading in options contracts takes knowledge. It takes practice. It takes research, seed capital, and the right set of tools. It also takes one more thing… a trading account. This is not a small decision. You will, hopefully, be moving a lot of money through this account, so you want to do it right. Here … Continue reading How to Open an Account for Options Trading Online
One of the lesser known tactics in the trader’s arsenal is market timing. Like any stock market tool, it has its uses and pitfalls, but a well-prepared trader can take advantage of good market timing to boost their portfolio. What is market timing? The idea behind market timing is that the stock market is, to … Continue reading What Is Market Timing Software and How Does It Work?
Mathematicians need their calculators. Lifeguards need slow-panning cameras. Professor Plum needed the candlestick in the conservatory (spoilers). Every practice needs its tools, and options trading is no different. To make the most out of your portfolio, you need the right data and market analysis. Sure that’s technically possible to get by hand, but why not … Continue reading Three Top Tools for Options Trading
As a regular reader of this blog, you have already read about some of the clever, and often creative, strategies that options traders come up with to beat the market. One of those techniques is a multi-position approach known as “the straddle.” Along with the related “strangle”, it is a way of securing your position … Continue reading The Long and Short of Straddles in Options Trading
In an earlier post, the concept of the straddles in option trading, a strategy where traders take out call and put contracts on an otherwise identical position, was discussed. Well, the strangle is pretty closely related to a straddle, but it is a little more complicated. Here’s how it works: The Strangle The strangle is … Continue reading What’s a Strangle and How Can You Use It in Options Trading?
What is an S&P 500 Index option? Good question. S&P Index Options, or “SPX options,” are linked to the value of Standard and Poor’s 500. Similar to the Dow Jones Average, the S&P 500 is a weighted measure of stock market value. At any given time, the value of the option matches that of the … Continue reading Five S&P Options Trading Strategies
It doesn't seem to matter how often people are told to take the emotion out of trading. Whether it is stocks or stock options, there still seems to be an overwhelming number of people who let their emotions rule. There is nothing inherently wrong with emotions. They are part of what makes humans, well, human. … Continue reading Trading Psychology 101: Eight Ways to Avoid Emotional Trading
Quick! Figure out what this means: GMCO170701C00010500. It is, in appearance, either a nuclear launch code or the reason why finance bloggers should not start drinking before they sit down to write. It is in fact a stock option ticker symbol, and it is something that any options trader will absolutely need to know. Here's … Continue reading Decoding Stock Option Ticker Symbols
Notation is key in any profession, whether law, medicine, science or money, and somehow all of these fields have agreed that the best way to write down complicated ideas is with the Greek alphabet. Lawyers use the Greek letter “pi” for plaintiff. Doctors use “alpha” to refer to chemical relationships, while scientists use “delta” to … Continue reading How Speaking “Greek” Helps You Reduce Your Options Trading Risk