In trading Delta hedging is a way to structure an option play to decrease or even eliminate the directional risk exposure of a stock holding or other option contracts. Stocks and options have directional exposure to a move in the market price, t... Read more
A put option contract gives the buyer of the contract the right to sell the underlying asset at the strike price of the put on the day of expiration and assignment. When writing a put option you create a ‘sell to open’ order with yo... Read more
This is a guest post by Jake @TrendSpider. In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the weekend video going over the broad markets and case studies from last week! Happy M... Read more
The profit factor for a trader or trading system is determined by taking the gross profit of winning trades and dividing it by the gross losses from the trades that lost money for a chosen sample size. This formula considers the cost of slippage... Read more
The VWAP (volume-weighted average price) is the ratio of the value of shares traded to total volume that is traded over a specific time period on a chart. It measures and quantifies the average price a stock is traded at for set period of time t... Read more
This is a content Guest Post by Forex trader Austin Silver. Here is a Forex cheat sheet on how to count pips, the power of 15 pips, how to count Forex profits, and how to define lot size. You can follow Austin Silver on Twitter and Instagram an... Read more
The parabolic curve chart pattern is one of the strongest uptrend patterns a stock can have. This type of pattern goes up the farthest and the fastest as it is under the strongest accumulation and every small pullback is bought by eager traders... Read more
Transductive reasoning is a type of flawed logic that is most commonly used by very young children to connect meaning between events where there is no correlation. With adulthood it takes the form of superstition or being fooled by randomness. T... Read more
Here is an Option Greeks cheat sheet you can use as a quick reference guide. For those not familiar with option pricing it can also be an educational guide as well. For more about option Greeks check out my article-> Option Greeks Explained.... Read more
If you are interested in trading options the before you start you need a good understanding of what determines the contract price. Understanding what factors determine an options value and how the contract price moves in correlation with the und... Read more
