Join Michael Kopera in this latest installment of our options trading series as he covers the vital indicators for measuring the sensitivity of an optionÆs price – The Greeks.
Education
How to Avoid Early Assignment Risk on Your Options Position
One expiration date Friday morning, you turn on your computer and notice you are no longer short 10 about-to-expire SPY calls, instead you are short 1,000 shares of SPY. What happened? How does this affect your options trading? Could you have anticipated this happening? What happened? Almost certainly, you were assigned on your short calls… [Read More]
11 Rules for Anyone Who Uses Charts
As I often say about my wine savvy, I know just enough to be dangerous. For many traders, the same holds true with regard to charting and technical analysis. They know enough to use an RSI (relative strength index) to gauge momentum but really don’t know why they use a parameter of 14. And they… [Read More]
Trading the Trend – Part 2
In our first installment of this series, we established the simple fact that price action in ALL financial markets behaves quite predictably around its open range of the actual pit session hours. Not every day… but more days than not. Anytime you can find any price behavior that repeats itself more often than not, you… [Read More]
3 Valuable Lessons in Value Investing
You are a long term investor, or are considering diversifying by adding some longer term investments to your portfolio. Where to start? What to do? And the all-important: what to buy? When considering a long term investment, investors can often get a significant advantage if they ensure that there is a price gap between a… [Read More]
Trading the Trend – Part 1
Market terms that traders commonly use such as “price action” and “trends” are relative by comparison. For the purely intraday traders out there and/or traders who look to establish trade positions with longer hold times expected, measuring the current trend with price action itself can be made simple and highly effective. The concept we’ll disclose… [Read More]
5 Steps to Trading for a Living
So you want to give it a go at trading professionally from the comfort of your house? Here are some aspects of the job that you might not have thought of. 1. Have a dedicated working environment and structured work hours. Create a space for your trading that is solely devoted to that and make… [Read More]
How to Trade S&P 500 Stocks with Bollinger Bands®
In an earlier newsletter we discussed some of the advantages of using the members of the S&P 500 as your trading universe. One effective way to trade S&P 500 stocks is by using a strategy based on Bollinger Bands ®, like the one we described in the Strategy Guidebook Trading with Bollinger Bands ® –… [Read More]
How to Avoid the Pitfalls of a Day Trader
When most people think of trading there are a few staple adjectives that always spring to mind. “Risky”, “stressful” and “volatile” are just a few examples of words that are synonymous with the industry. Whilst there are many different approaches to the markets, and some can be said to be none of these things, more… [Read More]
Trading With “The Courage of Your Convictions”
“The market does not beat them. They beat themselves, because though they have brains they cannot sit tight… He had not only the courage of his convictions but also the intelligence and patience to sit tight.” — Reminiscences of a Stock Operator But what if this time is different? The trader’s fear. You believe in… [Read More]