Some option positions are equivalent – that means identical profit/loss profiles – to others. Others are not. A few days ago I had an inquiry from a person trading options in a restricted account (e.g. an IRA that did not allow marginable trades or short options positions):
Investors with low willingness or need to take risks often look to bank and/or life insurance company fixed-rate products to increase potential returns instead of leaving their money in conventional checking or savings accounts. Some of these product types are CD’s, structured notes, fixed annuities and fixed indexed annuities.
Here is one of the analytical tools that allows us to claim "In options we are Big Data!" For those who want to find the movers and shakers, Advanced Ranker does the job. The Advanced Ranker combines an easy to use interface with a powerful sorting logic built on IVR and IVP.
Both option trading backtest approaches rely on the fact that there has been a bullish momentum pattern in Alphabet stock 7 calendar days before earnings. Further, we use moving averages as a safety valve to try to avoid opening a bullish position while a stock is in a technical break down, like the fourth quarter of 2018.
A technical study of chart patterns, focusing on historical volatility of the underlying, reveals that depending on implied volatility is a flawed idea. Traders should remember that options are derivatives, meaning their premium value is derived from historical volatility.
Trading is a tough business. There is no easy money in the stock market, but there are a lot of folks who will easily take your money. What is important to know that no matter how experienced you are, mistakes will be part of the trading process. This article should help you to avoid some of those mistakes.
Steady Options has now been tracking the Leveraged Anchor from the unlevered version for three months.The results so far have substantially beat expectations, though there is a possibility for improvements discussed at the end of this piece.
Many individuals are curious as to the testing process for a new fund. With the plethora of funds continually being developed, having some insight into this process can be helpful for investors. At the very least, it can provide a series of questions which should be asked in conducting due diligence on fund managers.
A quick online search for “Dow rallies 500 points” yields a cascade of news stories with similar titles, as does a similar search for “Dow drops 500 points.” These types of headlines may make little sense to some investors, given that a “point” for the Dow and what it means to an individual’s portfolio may be unclear.
For the third installment of our IVolatility for SteadyOptions series, we’re going to use the PnL calculator to explore a new Micron Technology, Inc. (MU)idea going into the March 20 earnings report.
Which stocks do you pick for options trading? In fact, does the underlying really matter? Many options traders ignore or overlook the critical importance of deciding which underlying to use for options trading. Focus often is on the richness of option premium as the sole factor determining which stocks to use for options trading.
According to Investopedia: Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio.The following set of charts are a great visual aid to help investors plan and set expectations for investing in the stock market.
