This is a Guest Post by Miad Kasravi @ZFXtrading of speculatorstrading.com. Trading with the Flow Part 1 of 3 Volume analysis Volume spread analysis or VSA. Looks at the relationship between volume traded and size of candlesticks. In it’s basic... Read more
In option trading a straddle play is created when two option trades are opened in the same underlying asset at the same strike price at the same expiration date but with both a call and a put. One side of the option play will become higher price... Read more
An Iron Condor trading strategy is an option play that is created with two vertical spreads. An Iron Condor is a combination of both a put option spread and a call option spread that have the same expiration date and four different strike prices... Read more
A ‘Poor Man’s’ Covered Call option play is a way for an option trader to structure a very similar type of risk/reward ratio as an ordinary covered call but with much less capital required. A ‘Poor Man’s’ Covered Call is a... Read more
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
