This is a guest post from Gavin McMaster @OptiontradinIQ Searching for income has become a challenge. Bonds have been a traditional conservative income stream for decades. Yet, bond yields are now trading at historic lows. This has led some investors and advisors to jump into lower credit “junk” bonds simply to generate any income – […]
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The jade lizard is an option play that is created by opening a bearish vertical spread using call options and adding a put option sold at a strike price lower than the call spread strike prices. Using one underlying stock with the same expiration date, the jade lizard strategy buys a call option at one
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Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can be used to call away a stock at the price of the strike with the profits being how much higher the stock was trading at
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Most traders that are profitable over the long term possess a distinct set of trading skills that separate them from the majority of traders that do not make money. Consistent success is a result of a systematic process that possesses an edge over the competition. Here are 10 trading skills that I have seen in
A list of the current most shorted stocks can be a great place to start for potential deep dip value buys. Stocks with the highest short interest across all major U.S. stock exchanges is a good list to watch for potential huge bounces when there are short covering fueled rallies. The below companies have the highest
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Option traders who believe the price of an underlying asset will not change significantly in the near future can sell short combinations of options that have different directional biases and strike prices. A short strangle is an option play designed to bet on a small move in either direction for an underlying stock in a
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Traders who strongly believe the price of an underlying asset will change significantly in the near future but are unsure about the direction of the move can trade combinations of options that have different directional bias and strike prices. A long strangle is an option play designed to bet on a big move in either
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The delta of a stock is always 1.00 because delta is the variance of movement of a stock versus an option contract. The delta of an option is the magnitude of the move in the underlier that the option will capture currently based on the odds of the option expiring in-the-money. Delta quantifies the amount
The post is a sample of a chapter from my book The Ultimate Guide to Chart Patterns. Bullish Flag Pattern Chart Facts: The bullish flag is a continuation pattern of the previous uptrend. A bullish flag chart pattern occurs after an uptrend out of a previous price base. The ‘pole’ is represented by the previous
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Trending markets are ones that go in one primary direction for a sustained period of time. Here are the signals for an up trending market: The chart makes higher highs and higher lows. Price is trending above the moving average of the time frame being analyzed. Price is near all-time highs or 52-week highs. The
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