The Major Differences You Need to Know Today, I’m going to discuss the major difference between the two styles of options, American and European. There are various differences between the two types of options that you need to know about. Not…
The VIX is calculated using a rather complex formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls. Fortunately, the calculation is performed by the CBOE exchange, so the trader doesn’t have to perform complex mathematical calculations to…
Vertical options spreads are very powerful trading tools if used correctly. There’s a total of four different vertical spreads and each one has its own unique purpose. The four different spreads can be divided into two different categories, debit spreads and credit…
Often times when traders first begin trading options, they have a difficult time deciding whether or not they should be buying options or selling them instead. With stocks, you are limited to buying and selling shares… But with options, you…
Open Interest Is a Valuable Tool for Options Buyers & Sellers When you examine an options chain there will be a column that’s titled open interest and it can be a very useful tool for options traders. The open interest shows…
Quick Tips To Becoming a Better Options Trader Many of the tips that I’m sharing with you today come from over 20 years of trading experience. Remember, there’s no correlation between complex concepts and profitability; and I urge all of…
Swing Trading Options Strategies Over the last few months, I’ve received several emails asking me questions about Swing Trading Options Strategies and how to apply our trading strategies to the options market. Originally, I decided against discussing options because I wanted to…
Buying options is different than buying the underlying asset, because not only do you have to be right on the underlying market direction, but you also have to consider other factors, such as time decay, volatility levels and several other factors…
