Definitions Buy call option – a stock option is the right to buy a stock (but not the obligation) at a certain price for a limited period of time. The price at which the stock may be bought is called the striking price. Three terms describe the relationship between the stock price and the options striking price: At the money / In the money / Out of the...
The Greeks are a set of mathematical measures used in options trading to assess and quantify various factors that influence the price and behavior of options. 📌 VEGA : Vega is a measure of how much an option's premium will change in response to a 1% change in implied volatility. Implied volatility represents the market's expectation of the underlying security's...
📍 CVD describes the number of contracts bought at the offer minus those sold at the bid. It simply measures the "aggressiveness" of buyers versus sellers. If the sellers are aggressive, they place limit orders instead of market selling and vice versa. CVD is the easiest method to use delta in your trading. 🔹UPTREND EXHAUSTION Price is making new highs but CVD...
In case you prefer to read the blog version of the report, it is listed below. I have included an example as well. What is DELTA? Delta is one of the four major risk measures in options trading. It measures the amount an options price is affected by a $1 price change in the underlying stock. DELTA is measure on a scale from 0.00 to 1.00 for call options, and...
Hi guys, Take a look at how I use my indicators along with a brief description of what they are used for. I apologize for the grogginess of the video but I'll have my coffee before, next time! Let me know what you think.
So this post is a little different - it's not an analysis or really a tutorial. I am looking to see what the community sees as the strangest, craziest, most colourful, most interesting or pointless indicator, strategy or tool? About 2 years ago I was shown a strategy/technique - I assumed it was complete rubbish, it talks about Lunar dates, cycles. Now although...
The strategies and ideas presented in this guide have been designed to provide you with a comprehensive program of learning. The goal is to guide you through the learning experience so you may be an independent, educated, confident and successful trader. There are numerous variations of traditional options strategies and each has a desired outcome. Some are very...
The information in this guide is intended to get you started with your understanding of options, the terminology, and their basic characteristics. In addition to this guide, it is recommended that you study all information available under the education section of your broker’s website. Most brokers who cater to options traders provide good information that will...
This is the first part of a tutorial series I will develop about trading concepts I use that are not well understood. I am using BTCUSD specifically, but the general ideas apply to every tradable asset. Volume is the amount of force applied to the market in both directions, buy and sell. It is "Ipso Facto" (by the fact itself) that force moves objects, with the...