Late last week, we got filled on a debit put spread signal in the gold ETF $GLD. Monday we have seen a continued flight to quality with heavy buyers in both gold and Treasuries flooding the market. Click the video below to see how we are going to adjust our position to try and get […]
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Qualcomm, Inc. (Ticker: QCOM) pays a $0.62 dividend tomorrow. In the video below, we discuss how this dividend will affect the underlying price of QCOM stock and what the net effect is on options pricing. Follow me on Twitter @CboeSib
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Many new traders focus on what is the next NEW thing they have to concern themselves with. What should I be trading? Where do I get in? Those concepts are important but hardly crucial to the success of a trader. One of the most important parts of trading is what you do and how you […]
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A call is an option that gives the buyer the right, not the obligation, to buy an underlying asset at a certain point in time at a certain price. A put option gives the buyer the right, not the obligation, to sell an underlying asset at a certain point in time at a certain price. […]
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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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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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When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine. The term sounds really complicated. It does not have to be. If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower […]
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