For the investor who wants to minimize the risks involved with trading stocks, a covered call is a type of options strategies that can actually be profitable and hedge your long position at the same time. In order to use a covered call option, an investor would need to be the owner of the […]
Tune in to any stock market news broadcast and you are bound to hear about the momentum of the market in one direction or the other. Newscasters are always talking about “which way the market is heading” and similar topics. As an observer you might wonder what it is that they are getting at exactly […]
There are hundreds of indicators for traders to choose from but in most cases, they won’t apply to day traders. However, the relative volume indicator is one of the indicators that all active traders should know and understand. What is Relative Volume? Relative Volume (often times called RVOL) is an indicator that tells traders how […]
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 […]
