UVXY traded upward 20% on 3 January 2020. that was the day the Iranian General, Solemani, was - pick your characterization basd on your politics - murdered assassinated etc. In February 2018 UVXY rose 110% in one session. In March 2020 The Covid spike was $12 to $130 in two weeks. Absent these outliers, UVXY has dropped from over $30,000 in 5 years with the most...
There are many reasons why an investor or trader trades options. The main reasons, as with other derivatives markets, is to hedge another position or to speculate on the performance of the underlying security. 1) Hedging: A hedge is like an insurance policy in that it can help mitigate risk for a small fee. For example, a portfolio manager buys a large position...
Options or options contracts are agreements to give the holder the right, but not the obligation, to buy or sell a specific amount of the underlying security at a specified price at or until a defined time in the future. Options are derivative instruments because their value depends on the value of the underlying asset. Further, options are “decaying” assets...
-Options Education with Caldoon Part 2. Here we tried to show you guys how the options work, what affects the price range and the probabilities of a given option expiring In the Money (ITM) or Out the Money (OTM). Enjoy!
Welcome to Part 1 of understanding Stocks and Options. Here we tried to present briefly the major differences between Stocks and Options. Hope you will enjoy reading this brief presentation. Best, Caldoon Investment
In this video I present a cautionary tale from trading history to show why it is a very bad idea from a risk management standpoint to hold options until expiration. This example comes from NASDAQ:MNST in 2014 when NYSE:KO made a surprise announcement that led to a huge move in the stock.
Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based...
Since 2020 the retail trading market has exploded with Weekly Options buying. Weekly Options are "cheap" and can, occasionally, give their buyers big exciting wins. Do they make sense over the long run? NO! A backtest of NASDAQ:TSLA proves that over the long run options are PRICED EFFICIENTLY to make traders lose and underperform buying shares!
In this article you will learn... - what a strike price is, - the different intervals for strike prices, - how to pick the right strike price, … and much more. Let’s get started. 1.) The basics: What is the strike price? Strike Price Definition: The strike price of an option is the price at which the option buyer has the right to buy or sell an...
You might have heard the saying “Sell in May and go away.” It is an old investing adage that has been around for decades, but does it actually work? In this blog post, we are going to find out what’s best to do. We will discuss: 1. What is the meaning behind “Sell in May and go away?” 2. Does sell in May and go away work? 3. Should you sell in May and go...
In this post, I will start from the example and then write the definitions. Our example will be on Boeing (BA), a hypothetical analysis might be that BA was trading sideways for more than half a year. Previous to that BA was down in price for more than 50%, also there was a rally of 100% between May and June. The volatility in the markets starting to rise, due to...
If you are wondering whether to trade options vs stocks, then this article is for you. There’s no simple answer to that question because it depends on how much money you have and your risk tolerance level. This blog post will cover the 7 topics that you need to know to answer the question “Is Options Trading Better Than Stocks?” 1. What Is The Difference...
Now, as you know, I like to use the PowerX Optimizer to find the best trades according to the PowerX strategy, along with The Wheel Strategy. So here’s my morning routine. Usually, I’m in front of the computer at 8 a.m. Central Time. That is 30 minutes before the US markets open. I run the scanner on PowerX Optimizer, and it finds possible trades based on my...
As most of you are aware, it is earnings season. So today we’re going to talk about how earnings season can impact options trading, because, as you know, I trade options. Now, just a brief intro. Earnings season happens quarterly, meaning four times a year, and this is when corporations reveal their financial results for the previous quarter. Now, the results of...
Our indicator can now be used by everyone. There are a lot of indicators trying to predict what will be the range of the stock in the future. Some of the indicators, that are well known, are using STD of volatility like Bolinger Bands or using an advanced simulation like Monte-Carlo, and others that are using different methods. Our approach to this subject is...
In this article, we’ll talk about how much money you need to trade for a living. I’ll share with you my three-step approach and give you an example from my trading account. “How much money do you need to trade for a living?” is one of the most frequently asked questions I get. “Can I start with $5,000 dollars, do I need $25,000 dollars, or maybe even more?” ...
Trading is fun and every trader is happy when their trades move in the right direction, but when a trade goes against you, you will experience a lot of emotions: Fear, anxiety, regret, doubt, maybe anger… … and these emotions in trading can lead to some bad decisions that could kill your account. In this article, I’ll show you how to control your emotions in...
How did I get here? To moving from Germany in 2002 to the United States, and came here with $30,000 in my pocket. I put $20,000 in my trading account, and I put away $10,000 for a living. It wasn’t easy in the beginning. It was quite challenging. Now things are different. I mean, thus far in the first four weeks of 2021, I already made more money than I was...