We recently explored the ins and outs of two mostly ignored options Greeks. While most traders understand and even consider delta and theta, vega and gamma tend to be a bit too esoteric to bother studying. And, it's absolutely possible to be a successful options trader without ever thinking about these latter two Greeks. For option trading fans that want...
By Shawn Langlois, MarketWatch Kevin Smith, chief investment officer at Crescat Capital, says the bear case for U.S. stocks has never been stronger” and it’s time for investors to be aware of the “gravity” of the current situation. “We certainly did not predict the Coronavirus, but it may prove to be the catalyst to tip this market that is trading...
By Shawn Langlois, MarketWatch Kevin Smith, chief investment officer at Crescat Capital, says the bear case for U.S. stocks has never been stronger” and it’s time for investors to be aware of the “gravity” of the current situation. “We certainly did not predict the Coronavirus, but it may prove to be the catalyst to tip this market that is trading...
The typical option trader at least understands the concepts of "Greeks" like delta and theta, even if they're not actively considering them when they pick option trades. Delta, of course, is how much an option price changes in relation to the change in price of the underlying stock or index (most traders have learned the hard way that options don't...
The typical option trader at least understands the concepts of "Greeks" like delta and theta, even if they're not actively considering them when they pick option trades. Delta, of course, is how much an option price changes in relation to the change in price of the underlying stock or index (most traders have learned the hard way that options don't...
Most traders understand what a “Waterfall event” is if you’ve been trading for more than 3 years. Nearly every downside price reversion event initiates in a breakdown event (the first tier of the waterfall event) which is followed by additional deeper waterfall price collapses. Almost like price breaks lower, finds support, settles near support, then breaks lower targeting deeper price...
Most traders understand what a “Waterfall event” is if you’ve been trading for more than 3 years. Nearly every downside price reversion event initiates in a breakdown event (the first tier of the waterfall event) which is followed by additional deeper waterfall price collapses. Almost like price breaks lower, finds support, settles near support, then breaks lower targeting deeper price...
Most option traders understand the concepts of delta and theta. Delta, one of the so-called option "Greeks," is a measure of how responsive an option's price is to changes in the value of the underlying stock or index. Generally speaking, the higher the delta, the better. It means you're getting more bang for your buck. Theta, meanwhile, is a measure...
Most option traders understand the concepts of delta and theta. Delta, one of the so-called option "Greeks," is a measure of how responsive an option's price is to changes in the value of the underlying stock or index. Generally speaking, the higher the delta, the better. It means you're getting more bang for your buck. Theta, meanwhile, is a measure...
It's not as if the market was ever firmly bullish one at any point over the past four trading days (remember, Monday was MLK day). But, Friday's sizeable setback sent a clear reminder to all traders that they can't turn their back on stocks for a single second. Although the indices aren't yet past the proverbial point of no return,...
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