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    September 30, 2020

    Bad News For NKLA Can Be Good News For NIO

      We had a great example of a swing buy entry in NIO, Inc., the electric car company (Ticker: NIO). It’s based on a break out pattern on an hourly chart and confirmed with a daily chart.   Click the video below to learn more details: Grab a free day pass to one of our live […]

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    September 29, 2020

    The Similarities and Differences Between VIX and VXX

    The VIX and VXX are both very popular trading vehicles for trading volatility.  But, unlike the perceptions of many traders, they are not exactly interchangeable.  There are many similarities and more importantly, some very important differences. Click the video below to learn more details: Grab a free day pass to one of our live signal […]

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    July 27, 2020

    Option Gamma

    Gamma is the rate of change for an option’s delta based on a single-point move in the delta’s price. Gamma is at its highest when an option is at the money and is at its lowest when it is further away from the money. Click the video below to get more detail. Grab a free day pass to one of our live […]

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    July 27, 2020

    What Do You Mean by “Scalping Gamma”?

    “Gamma Scalping” is a concept that retail options traders should know about, but frankly will rarely, if ever, use.  Not because it is a bad idea, but because it is capital intensive and it’s necessary to own the underlying asset. “Gamma Scalping” involves the process of scalping in and out of a stock or futures […]

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    July 27, 2020

    Option Delta and Theta

    Option Delta measures the degree to which an option is exposed to shifts in the price of the underlying asset (i.e., a stock) or commodity (i.e., a futures contract). Values range from 1.0 to –1.0 (or 100 to –100, depending on the convention employed). Option Theta refers to the rate of decline in the value of an option over time. […]

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    June 10, 2020

    The Difference Between Implied and Historical Volatilities

    In contrast to historical volatility (HV), which looks at actual asset prices in the past, implied volatility (IV) looks ahead. … Implied volatility can be derived from the price of an option. Specifically, implied volatility is the expected future volatility of the stock that is implied by the price of the stock’s options Click the video below to see how we dive into this important aspect […]

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    June 10, 2020

    Helping You Understand Option Gamma

    An option’s gamma is a measure of the rate of change of its delta. The gamma of an option reflects the change in the delta in response to a one-point movement of the underlying stock price. Like the delta, the gamma is not a static measure.  It is constantly changing, even with tiny movements of the […]

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    June 10, 2020

    What Is Option Margin?

    Option margin is the cash or securities an investor must deposit in his account as collateral before writing – or selling – options. Margin requirements are established by the Federal Reserve Board in Regulation T. Option margin differs from other types of margin that you may associate with stock or futures trading.  These types of margin allow a trader to employ leverage in […]

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    June 9, 2020

    The Difference Between Implied Volatility and Vega

    Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]

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    June 9, 2020

    What Is the PFE and How Do We Use It in Our Trading Methodologies

    The Polarized Fractal Efficiency (PFE) is a technical indicator that was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates […]

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