Options are a way for investors to get involved with the markets even if they do not have that many funds to get started. Many investors are hesitant to get involved with options because they seem too complicated. However, with just a little education on these it becomes a lot more clear. There are benefits […]
A debit spread is an options strategy that seeks to maintain maximum profit. It achieves this by capitalizing on the difference from the premium paid for long component of the spread less the premium paid for short component of the spread. It involves two options – call or puts. One option has a lower […]
Delta is a simple measure used in derivatives trading to indicate the relation between the price of an option and the price of its underlying security. The delta of an option is the discount factor that will directly translate the price change in a security into the price change of that option. The delta […]
The simplest way to describe theta in options trading is that it is the daily decay of the extrinsic value of an an option. However, the metric is based on the assumption that the price and volatility of the underlying security will be constant over that period of time, which is never the case. […]
If there is something that counts in binary trading, it has to be the Relative Strength Index. This essential aspect can help you become a successful trader if you understand how to analyze the markets with this significant identifier between overbought and oversold conditions in asset trading. What is the Relative Strength Index? […]
Investing terms are important to understand if you want to get involved in the markets. A full understanding of them will help you make better choices when it comes to how you are investing your hard earned funds. One of the terms that you should know is something called a “dividend”. What Is A Dividend? […]
An oscillator is a technical indicator that is used to help determine over bought/sold conditions or to confirm the strength of a trend. Oscillators use a scale between 1 and 100 that smooths out prices using price averages over a give time frame. Oscillators are usually used in conjunction with other technical indicators to help […]
In markets, all times of day are not created equal. We know the open and close are important, but why? Most of us have a vague idea why, and may have heard a few quotes about the open, but do we really know why the open is so important? The open often establishes the trend […]
A stock split a corporate action that happens when a company decides their stock price is either too high (forward split) or too low (reverse split). Companies do this to help reduce the cost of a stock so more people can invest in it or if it is too cheap it raises the price to meet […]
Fundamental Analysis is a way to evaluate the value of a company based on key financial metrics to find it’s intrinsic value as way to see if it is overvalued or undervalued. This method is more suitable for investors who are not concerned with the day-to-day price action of the stock and are rather focusing their […]
