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 […]
As day traders, we begin and we close our daily activity with no open positions. By definition, there is no room for holding anything in the portfolio overnight. A common mistake that newbie traders use to make is to break this one rule once a trade is not collaborating. The huge problem with this approach […]
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 […]
Trade In The Simulator As If It Were Your Hard-Earned Money! One of the most well-known statistics that every trader knows is that 90% of those who try to be consistently profitable will fall short into their attempt. In fact, just looking at this one number, it’s going to be easy understanding why trading is […]
Daily Recap Day 51 of the $100k Challenge +$1,542.58 | Ep. #55 All right guys, so we’re going to do a little mid-day market recap here. We just recorded our fifth episode of Behind The Trades, so that’s going to be on YouTube, Facebook Live, and on the podcast. Obviously in that episode, we did […]
Day 49 of the $100k Challenge -$5.9k on my 4th Red Day | Ep. #53 All right, guys, so let’s do our mid-day market recap. Here we are, on the other side of that big snow storm. Today is day 49. Now, I want to remind you guys all that Friday, of course, is Saint […]
Day 48 of the $100k Challenge – Red Day Recap Pt. III -$2.6k | Ep. #52 Guys, here we are on day 48 on the 100K challenge. Today unfortunately is the third red day recap in a row. This is the first three day red streak I’ve had in 2017. I’ve had, I think, two […]
Day 47 of the $100k Challenge -2.2k | Ep. #51 All right, guys. We’re going to do a little midday market recap here, go over the trades from today. Today’s Day 47 of the $100,000 challenge. Thankfully, I broke $100,000 last Wednesday on Day 44 because as of now I’ve dipped back below 100. I […]
Day 46 of the $100k Challenge -$3k | Ep. #50 All right guys so, here we are at the end of the week. This is day 46 of the 100,000 dollar challenge and unfortunately, today is a bit of a disappointing end to what has otherwise been a great week. I’m finishing the day down […]
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. […]
