Options are one the most versatile financial instruments at your disposal. Options can be used to trade market direction, to trade volatility or to hedge a position in the underlying instrument. One of the most popular uses for options is…
One of the simplest and most effective methods for staying on the right side of the trend is the use of moving averages. Moving averages can provide traders with a quick visual representation of whether price is moving up, down,…
According to the Merriam-Webster dictionary, the word stochastic is defined as: “involving a random variable.” “involving chance or probability.” When it comes to trading, the stochastic oscillator is a technical momentum indicator that compares a security’s closing price to its…
Few phrases can make or break a commodity trader’s day more than “limit up” or “limit down.” On the right side of a limit move, a trader can potentially reap significant and rapid rewards. On the wrong side of a…
The term ‘volatility crush’ is music to the ears of option sellers while option buyers likely relate it to the sound of nails on a chalkboard. This term refers to the sometimes massive decline seen in implied volatility levels of options. While…
You might be wondering, should I buy options with 30, 60, or 90 days until expiration? The simple answer is: There is no simple answer. Long options are all susceptible to the effects of theta, or time decay, and as…
VIX is the ticker symbol for the CBOE volatility gauge. This gauge measures market expectations for near-term volatility by examining implied volatility in a broad group of SP500 index options. You might be wondering how the VIX is calculated. The…
Think implied volatility is likely to rise? Want to put on a position that can potentially profit from an increase in IV? Then a long options calendar spread might make sense. A long options calendar spread is comprised of long…
