Introduction to Options Trading Options trading represents a vital aspect of modern financial markets, providing investors with opportunities to hedge, speculate, or enhance their portfolios. In fact one might say that learning to trade options in today’s financial world “Is…
Overview: Call Debit Spreads on Trending Stocks Call debit spreads are directional trades designed to benefit from upward price movement while managing risk. This strategy involves buying a call and simultaneously selling a higher strike call with the same expiration.…
Bollinger Bands were created by John Bollinger in the 1980s, and are one of the most versatile and widely used volatility indicators in technical analysis. They consist of three components: The bands expand and contract based on market volatility. Bollinger…
Introduction to Technical Analysis Technical analysis is a method used to evaluate and forecast the movement of securities’ prices by analyzing statistical trends from trading activity. This analytical approach focuses primarily on historical price data and trading volume, helping traders…
Introduction to Trading Mistakes Entering the world of trading can be both exhilarating and intimidating, especially for beginners. As new traders embark on their journey, they often find themselves confronted with various pitfalls that can significantly impact their success. Understanding…
When it comes to Options Trading the internet is full of myths and misconceptions that can mislead traders who are interested in learning about this asset class. Here are some of the most common ones: These myths can lead traders…
An Overview of the Book The book “A Complete Guide to Volume Price Analysis” by Anna Coulling is a fantastic book that I would highly recommend for any trader who truly wants to understand how and why the markets move…
Introduction to Options Trading Options trading has become increasingly popular among investors who seek to diversify their portfolios and enhance returns. At its core, options are financial derivatives that provide the buyer with the right, but not the obligation, to…
Dispelling The Myth With An UNH Trade In a recent post I addressed one of the most common misconceptions about if there is any real advantage of credit spreads over debit spreads even when implied volatility is high. Here I…
Correcting a Common Misconception on Vertical Spreads When I was taught options they taught us that when volatility is high or inflated you should sell credit spreads and when volatility was low you should use debit spreads. This type of…