Tag: licensed financial adviser
Trading Divergence and Hidden Divergence – Part 1
Divergence in trading refers to the condition when there is a discrepancy between a stock’s price action and its momentum indicators (most commonly the RSI and the MACD). First, we…
Read More »The Biggest Mistakes Traders Make When Rolling Options
Rolling options is a powerful tool in a trader’s arsenal, allowing for trade adjustments to manage risk, extend duration, or optimize profits. However, many traders make critical errors when rolling…
Read More »Max Pain in Options Trading: How Market Makers Influence Expiration Week
Contents Understanding Max Pain Theory How Max Pain Is Calculated Why Stocks Move Toward Max Pain How Traders Can Use Max Pain to Their Advantage Final Thoughts: Max Pain Is…
Read More »How To Find Risk-Free Options Collar Trades
In our previous article, we gave an example of how it could end up in a risk-free options collar on a stock. We are not talking about zero-cost collars. Those…
Read More »Double Diagonal Pre-earnings Trade
When it comes to playing stock earnings announcement events with options, there are pre-earnings trades that enter and exit the trade before the earnings event. Contents Example Of A Double…
Read More »Earnings Risk Hedging With Zero-Cost Collars
A zero-cost collar consists of buying a put option and selling a call option to finance the cost of the put option. When the correct strikes and expiration are chosen,…
Read More »Option Greeks Of The Put Credit Spread
We will assume you already know that a put credit spread has a positive delta, positive theta, and negative vega. Today, we will dive deep into how these Greeks change…
Read More »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?…
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