Introducing a “Risk Free” Trade

    Is it possible that this member found the holy grail? After running some backtesting, it turned out that this setup can sill lose money if Implied Volatility drops…

Read More »

Option Strategies For Bear Markets

Today we’re looking at option strategies for bear markets. We will look at which strategies are appropriate and how to trade them. Let’s get started. Contents Introduction What Is A…

Read More »

Unbalanced Condor – ADM Example

Contents Decision Point Scenario 1 Scenario 2 Conclusion Suppose an investor is considering an iron condor on Archer-Daniels-Midland (ADM) after its earnings report, which had hardly moved the stock. source:…

Read More »

VIX Options Settlement Explained | What You Need to Know

VIX Index options are some of the most actively traded options in the world. However, VIX options have a very different settlement process compared to standard equity options. In this…

Read More »

How Anchor Survived the 2020 Crash

This is how the Anchor portfolio looked like on Feb.6 2020, two weeks before the start of the decline: SPY was at 334, total portfolio value around $143k. This is…

Read More »

How Do SVXY and VXX Work? Volatility (VIX) ETFs Explained

  Outright speculation on future volatility is a pretty new phenomenon in financial markets. The mathematization of derivatives markets made traders realize that they’re primarily making bets on future volatility…

Read More »

USD Price Outlook: US Dollar Strength to Ebb as VIX Index Falls

The US Dollar is flirting with eight-week highs following an infux of strength across USD price action, but can bulls sustain the bid as risk appetite improves and the VIX…

Read More »

How to use the Imbalance Locator in Day Trading

The options market provides useful information to traders because it shows how large investors and people with inside information are positioning their positions. Indeed, the options information has been used…

Read More »

Best Covid-19 Stocks for Day Trading [2020 Update]

The coronavirus pandemic has had serious implications in the market. In March, when the World Health Organisation (WHO) declared it a pandemic, global stocks dropped to multi-year lows. In the…

Read More »

Trading the Volatility Index (VIX)

The Volatility Index, or VIX, is a market index that represents the markets expectation of 30-day forward-looking volatility. The price is derived from the S&P500 index options and provides a…

Read More »