Gold has a dual role as both a commodity and a currency. As a commodity, there are numerous industrial applications that give the precious metal intrinsic value. As a currency, it can be used as a method of wealth transfer or even as a hard currency in itself (no pun intended). Since gold is traded […]
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Many traders are familiar with the concept of the covered call strategy. Few know what it really means though. The concept is quite simple. You own stock. You then sell a call with a strike price above where the stock is currently trading. What you have essentially done is taken a long equity position and […]
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Many traders shy away from trading options because for many reasons. The two main ones I have encountered are either they are too complicated or there is too much risk or a combination of both. The risk part is simply just not true. If used properly, options afford traders MORE control of their risk and […]
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Many traders are familiar with the concept of the covered call strategy. Few know what it really means though. The concept is quite simple. You own stock. You then sell a call with a strike price above where the stock is currently trading. What you have essentially done is taken a long equity position and […]
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We discuss tirelessly about risk during the trading day. Risk is not something to avoid, but manage. Some risk management is pretty straightforward like when dealing with vertical spreads. Other types of spreads, like calendar spreads require a bit more work and a few more tools. Click the video below as I walk us through […]
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The coronavirus pandemic has shut down entire states and sports leagues, restricted travel and decimated both the stock and bond markets. Though people around the world are feeling the effects of this virus right now, like most prolonged crises, it is possible that we will not actually see the full economic impact for a couple […]
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Yesterday afternoon, Scott Bauer discussed an update on the market volatility and an example trade on $SPY and more with Oliver Renick on TD Ameritrade Network’s Market on Close. Grab a free day pass to Scott’s live signal trading room today: http://bit.ly/nlonedaypass
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The premium of an option is often used interchangeably with price. While that is almost true, it’s not entirely true. The price of an option includes both intrinsic and extrinsic value. The premium of an option refers to just the extrinsic value. Watch the video below as we analyze the premium associated with our position […]
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Many traders look at their win to loss rate when evaluating their trading. This is an important concept, if you are right way more than you are wrong, you probably are not going to enjoy much success. But, many are missing one part of the puzzle, expected value. Not only IF you are right or […]
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On-Balance Volume keeps a running total of volume flowing into or out of a security. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. A close lower than the previous day’s results in all of the day’s volume considered down-volume. A rising OBV is defined as a […]
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