Tag: licensed financial adviser
What is the Max Pain Concept of Options Expiration?
In the options market, there are options sellers and options buyers. What is a win for the option seller is a loss for the option buyer, and vice versa. Contents…
Read More »Something Interesting When MACD Approaches Zero
The MACD indicator has a lot of moving parts. Today, we are only looking at what happens when the MACD line approaches zero. Contents Introduction MACD Replaces The Moving Averages…
Read More »The Hidden Risks of High-Yield Covered Call ETFs
High-yield covered call ETFs have surged in popularity, offering attractive income streams in a market where investors crave yield. However, many investors fail to fully grasp these products, which comes…
Read More »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…
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