Category: Options

So I touched on Implied Volatility in a recent post, but I feel as though there is more to say on the subject. It’s really one of the most important things to consider as an active trader, so the more that we can learn about it, the better. So for a quick recap, volatility is the measure…

So I’ve done a few posts on the different types of Greeks option traders are exposed to. Delta, Beta, and Theta are all really important for people to consider when making a trade, but there are other Greeks that we should look at as well.

Gamma is yet another Greek, one that we don’t examine quite as closely as the others, but it is still important. Gamma represents the direction and speed in which delta will change per a $1 move in the price of the underlying stock. In calculus terms, gamma is the first derivative of delta. It is…

Many people talk about how time has effected their lives. The aging process is a common complaint with creaky knees and achy backs and bills to pay. Father Time is the “enemy” in this situation. But when it comes to selling options and taking advantage of theta, Father Time can be your best friend.

On the blog, I talk about Implied Volatility, or IV, quite a bit. It’s basically what active investors look for in order to decide which underlyings to trade.

Beta is the coefficient of output on regression of the market. Of course. More simply put, beta is a way to measure the underlying’s risk relative to the overall market. For example, a beta of one is about the same level of risk as the overall market. The SP 500 is considered to have a…

When I first began trading, I had no idea what any of the Greeks meant. I was basically trading blind, looking only at probability of profit and max loss. When I started utilizing the Greeks, especially delta, trading began to make a lot more sense! Delta is an awesome way to quantify your trade, giving…

Just like each dwarf in Snow White and the 7 Dwarfs has his own unique personality, the following trading strategies each offer a unique spin to take advantage of various market environments.

Just to clarify: the market is on a serious rally. Records are being set for intraday highs, as the DOW continues its climb towards 20,000. Some credit Trump with the move, citing his plan to decrease business regulation and lower corporate tax rates as bullish for US stocks. But what about the long-term? What’s going…

2016 was a year of learning. The market was a proverbial rollercoaster, with ups and downs and twists and turns that could make even the most seasoned trader a bit sick to their stomach. As we move into the 2017 trading year, we have to look back on 2016, and the lessons it provided, as…