In Black–Scholes option pricing model, the implied volatility or ‘IV’ of an option contract is the cost embedded in the option of the volatility of the underlying instrument that it is being valued against. Volatility is the input in... Read more
This is a guest post by Jake @TrendSpider. In this weekend blog post, we take a look at the continued wild ride the markets took last week. Make sure to check out our Sunday Chart Show this weekend at 6 PM EST with Peter Hegedus, founder of the... Read more
The Maximum Pain theory in the options market or simply ‘Max pain’ tries to explain that market prices for stocks and commodities will many times settle at the approximate price on the option expiration date where the most option buy... Read more
A market trend is the direction that prices are moving in for a specific timeframe. A market can move in an uptrend, a downtrend, and other times just go sideways inside a price range. Here are simple trend indicators to identify a trend in your... Read more
In trading, a ‘Bull Trap’ is considered a rally in price that creates a false momentum signal to go long because the downtrend looks like it is over and reversing back to an uptrend in price but it is a false signal and the market r... Read more
In trading and investing, risk management is defined as the process of understanding, identifying, adjusting and managing all of the potential risks that an account is exposed to so the size of losses and drawdowns are minimized for the magnitud... Read more
This is a video guest post by Jake @TrendSpider. Read more
Open interest quantity shows the total number of active contracts in each strike price and expiration date. Open interest is one of the columns displayed in an option pricing chain along with the current contract price, price change, bid price,... Read more
This is a guest post by Jake @TrendSpider. In this weekend blog post, we take a look at the continued wild ride the markets took last week. Make sure to check out our Sunday Chart Show this weekend at 6 PM EST with Mike Pisani, founder of smart... Read more
In the financial markets a dead cat bounce is a small, brief rebound in the price of a stock, commodity, or currency that is in a long term downtrend. The mechanics of a dead cat bounce is that it stops going lower and puts in a short term low i... Read more
