Contango and backwardation are terms used to define the structure of the a time structure curve. For example, the yield curve, the VIX curve or a commodity such as Gold or even Corn. When a market is in contango, the forward price of a futures contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the futures contract is lower than the spot price.
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Many options traders focus on one direction at a time. However, risk reversals can force you to focus on two directions simultaneously. Buy a call. Buy a put. Maybe sell a covered call against something you already own. That’s exactly what makes them so powerful…and dangerous, if you don’t know what you’re doing. I’ll walk […]
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Written By: Howard Greenberg As everyday traders put their trading plans into action for 2026, penny stocks might not be on many of their radars. It’s totally understandable why penny stocks may not appeal to the more calculated seasoned traders. Their reputations for susceptibility to manipulation, extreme volatility, and low liquidity make them way too […]
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What is Prop Trading? Prop trading has exploded in popularity over the last five years. It’s transformed from a niche practice into a mainstream gateway for retail traders. There’s a lot of highly skilled traders out there who are sitting on the sidelines right now for two main reasons: Prop trading addresses both issues. In […]
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Wall Street’s historic weekly run came to a halt, with stocks hit by a tech selloff and higher bond yields after a solid jobs report added to bets the Federal Reserve’s next interest-rate move will be a hike. The tech-heavy Nasdaq composite suffered its worst week in more than a year and the S&P 500 ended its […]
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Bitcoin has been under serious pressure in 2026. Year-to-date, it’s down over 31%. When a prominent asset like Bitcoin falls this hard, one question always comes to mind: Is something else about to take its place? It’s a debate that resurfaces every time Bitcoin stumbles…and so far, its resilience has proven doubters wrong… But could […]
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There are moments in the market that demand attention; not because of what’s happening on the surface, but because of what’s brewing underneath. Right now, one of those moments could be unfolding. It’s a disconnect that Scott Bauer says is unlike anything he’s seen in his 30+ years of trading. Scott explained what he’s seeing […]
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