Tag: licensed financial adviser
Rolling Options Positions For A Credit
Rolling an options position for credit involves closing an existing position and opening a new one to collect additional premium. This technique is primarily applied to short premium strategies such…
Read More »How To Buy The Dip With The PSAR Indicator
The strategy commonly referred to as “buy the dip” is where an investor buys (or goes long) an underlying asset that has dropped in price but is expected to rebound…
Read More »What is the Best Delta for Put Spreads
When selling out-of-the-money put credit spreads for premium, one of the most important questions to ask is what delta to sell them at. Contents What Delta Is This Put Spread?…
Read More »What Happens in an Options Ratio Spread at Expiration?
Let me be more specific on what ratio spread I’m talking about. Because there are many types of ratio spreads. Contents Price Of Stock Greater Than Strike Prices Price Of…
Read More »Behavioural Biases That Impact Asset Allocation Decisions
Contents Introduction: How Emotions Influence Investment Choices Overconfidence Bias: Believing You Know More Than You Do Loss Aversion: The Fear Of Losing Money Recency Bias: Overemphasizing Recent Events Herding Behavior:…
Read More »Asset Allocation by Age: A Guide to Investing Over Time
The Importance Of Age In Asset Allocation Asset allocation—the way you distribute investments across asset classes like stocks, bonds, and cash—plays a pivotal role in shaping your portfolio’s success. However,…
Read More »The Calendarized 1-1-2 Option Strategy
A previous article discusses Tom King’s 1-1-2 option strategy. He has other variations of that category, such as the 1-1-1 and the “long-term 1-1-2”. The 1-1-1 and 1-1-2 are part…
Read More »How Asset Allocation Impacts Investment Returns and Risk
Asset allocation is the cornerstone of portfolio management, directly influencing both the potential returns and the risk profile of an investor’s portfolio. At its core, asset allocation involves dividing investments…
Read More »What is the CVaR Metric in Options Trading?
CVaR is a metric found in some trading platforms, particularly the Tastytrade platform. It stands for “Conditional Value at Risk”. The “a” for the preposition “at” is lowercase. Contents Example…
Read More »Turning a Butterfly into Black Swan Hedge
Let’s look at a hypothetical example where a broken-wing butterfly options structure can be turned into a black-swan hedge. In the process, we can explore the concept to see if…
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