The Wheel Options Strategy or the Triple Income Strategy is an option play where an option trader tries to profit from a trade on a single stock in three different ways. Step 1 is where the trader sells cash secured put options and collects the premiums on a stock that they wanted to buy at a specific price to […]
The Wheel Trading Technique Read More »
Insider trading is defined as buying or selling stocks on public exchanges using information that is not publicly known or available to other investors or traders. This happens when people with access or connections to confidential or non-public financial information, news, or facts about a publicly traded company trade based on what they know or share
What Is Insider Trading? Read More »
This is a video guest post by Jake @TrendSpider. Chart Courtesy of TrendSpider.com
Finding An Edge During A Stock Market Crash Read More »
Everyone should have their own strategy and plan for trading or investing in the stock market to create an edge in their own timeframe. Each time you buy a dip in price action it should create a good risk/reward ratio and fit your own risk tolerance and have the potential to achieve your own return
When to Buy the Dip and When Not To Read More »
This is a guest post by Jake @TrendSpider. In this weekend blog post, you will find our “Top 5 TrendSpider Charts This Week”, weekend analysis, and the link the this Sunday’s show! Make sure to check out our Sunday Chart Show this weekend at 6 PM EST with Arun Chopra, founder of Fusion Point Capital!
Current Stock Chart Patterns on SPY QQQ and IWM Read More »
Dollar cost averaging is an investment process where you invest a set amount of money into a market at regular intervals. The strategy is to put a fixed amount of dollars in a specific investment like an index fund so you get more shares when the price is lower and less shares if the price
What is Dollar Cost Averaging? Read More »
Elliott Wave Theory is a method of technical analysis that traders use to analyze and quantify price patterns in financial markets by looking at cycles. The theory believes that changes in investor sentiment and their psychology creates impulse waves and corrective waves inside the larger trends in market price action. The theory attempts to forecast market
What is Elliott Wave Theory? Read More »
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 state the body size of a candle is in proportion with volume traded, in the FOREX market it is
Forex Trading with Volume and Candlestick Charts 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 priced in an uptrend and the other will move higher
What is a Straddle Option Play? 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. A long iron condor is when an option trader sells both sides
The Iron Condor Options Strategy 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 another name for a Long Call Diagonal Debit Spread that is used to create a
The Poor Man’s Covered Call Option Play 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 an option pricing model that measures when an asset will likely return to a theoretical value
What is Implied Volatility? 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 thetraderspath.com !
Current Chart Patterns on SPY QQQ and IWM 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 buyers will end up losing the maximum amount of money. The Max Pain is always the
Max Pain in Options Explained 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 trading timeframe. Uptrend indicators: Higher highs and higher lows in
Simple Trend Indicators 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 returns to a downtrend trapping longs who then need to
What is a Bull Trap? 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 magnitude of negative impact they will have on a systems risk of ruin and long term profitability. Some examples of possible risks to investment
A Risk Management Process for Traders Read More »
This is a video guest post by Jake @TrendSpider.
Stock Market Crash: Understanding the Last Four Weeks 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, ask price, and volume. Open interest shows the current total number of option contracts that
What is Open Interest in Options? 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 smartoptiontrading.com!
Current Chart Patterns on SPY QQQ and IWM Read More »