If nothing else the options market is fair/efficient. We have faith in the integrity of the market, allowing us to focus on our trades and less on the “fairness” of options prices. But what evidence is there to support this?…
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Conventional wisdom using oscillators, such as the Stochastic or RSI, has the trader wait for confirmation after indicator turning points have occurred before placing the trade. This chart demonstrates this concept. The green arrows denote buying when the indicator crosses…
Let’s take a look at what APPL might do over earnings. AAPL’s earnings always stimulate a huge discussion and affect boatloads of people. I think the season of wild 15-20% gaps on earnings for AAPL are over and calmed down….
Markets HATE uncertainty and when an outcome is in doubt the fear of the unknown is unnerving. Political parties tend to have predictable policies. Tax cuts versus increased spending on social programs or rebuilding the military have different impacts on…
My guest this week is Morad, better known as Futures Trader 71. This is his second appearance on Chat With Traders and we have all new topics up for discussion… As you might have guessed, FT is a futures trader,…
There is no right or wrong choice when it comes to choosing a path for your trading. Some people are content to rely on periodic statements to monitor their investment. Others want access to market-to-market performance. Some are sensitive to…
If you have ever wondered how to predict stock movement in response to an earnings announcement, here’s a neat little trick. To use it, we need to go to the options market. There is a strategy called a short straddle….
The topic of today’s shortcut has been a popular request after I mentioned the importance of ‘the chart’ in this recent post. If you are an investor or trader and you require a chart to visually see the price action,…
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…
Hello and welcome to another episode, traders! Really quickly, I would like to thank everyone who has been tweeting about this podcast over the last few weeks; it’s been so awesome to go back and forth with you all! If…
