≈ Keep it in your pocket. ≈
Continuing with our Options Heuristic Series, where we try to bring the most basic options concepts in a way that is both easy to understand and applicable to your trading business. This week we’ll be featuring two more Absolute Truths, numbers 5 and 6.
An Absolute Truth is something that is true at all times no matter the circumstances. Unless someone changes the way things work, these Absolute Truths will remain absolute.
Absolute Truth n.5: Options are contracts and contracts have an expiry date.
Options are like any other contract in the sense that (1) they set the rules of the deal, and (2) they have a date where they are not valid anymore.
This plays a major role in our trading business. The time between now and the expiration date influences the price of the option due to the amount of uncertainty that is built into it. More time, more uncertainty.
You can download and print the flashcard HERE.
Chart of the Day
Absolute Truth n.5
Video of the Day
Pre-Defining Risk
Coach Noah Davidson explains the importance of defining risk before placing any orders, even more during high volatile markets.
Today’s Lineup
Environmental Hedging
What Now?
Today I don’t want to go through the clean and dirty lists, as probably every chart is gonna look similar. Instead, I want to do some group therapy and talk about what happened last week, how are we feeling and most importantly how do we go from here. I will share with you my personal “check list” of things I try to do, or not to, after a little market meltdown. This list has helped me keep focused and avoid doing some dangerous mistakes in market conditions like the current one.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
