This article will shows how this works, and how IV can affect your decision on what type of trade to open. Directional Spreads Let’s start with the simplest of…
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Investing
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Insider Buying and Selling In doing so we are competing with quant-based analysis that is poring hundreds of millions of dollars into similar things and rarely does the retail investor…
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Ratio trading the earnings Everyone knows what a ratio trade is right? A ratio can be found in many shapes, forms and directions, the SO beloved Hedged Straddle is a ratio…
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Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and exclude commissions, so your actual results…
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In both cases a (usually near the money) option is sold and used to partially fund the purchase of two (or more) out of the money options. Let’s see an…
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Introduction To The Long Put Strategy Options are used by investors to take advantage of a wide range of projections on the state of the market. Unlike stock investing, where…
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Introduction Options can provide investors with an extremely versatile tool that can be used to bet on market direction or changes in volatility levels. Long options positions can be initiated…
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Definition of Delta Hedging Delta hedging is a strategy in which an investor hedges the risk of a price fluctuation in an option by taking an offsetting position in the underlying…
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A diagonal spread is an options strategy that involves buying (selling) a call (put) option at one strike price and one expiration and selling (buying) a second call (put) at…
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By re-centering their positions, traders can benefit from the inherent profit associated with being long gamma and continuously re-hedging their delta exposure. The primary purpose of gamma scalping is…