≈ Keep it in your pocket. ≈ Today, the Absolute Truth n.4 is about option pricing, a key concept in options trading. Absolute Truth n.4: Options are multidimensional beings. Their price is determined by the current price of the underlying asset, strike price, volatility, time until expiration, and risk-free interest rate. What that means is
≈ Large Cap Tech Stocks ≈ The bull market has been chugging along for almost 10 years. During the run, we’ve seen fantastic gains our of the market leadership from large cap technology stocks. Some of the most watched, and traded, have been the likes of Facebook, Amazon, Apple, Netflix and Google. This group has
≈ Rule yourself. ≈ We are always searching for meaning in what we do. From the little things to life itself. Meaning is a basic instinct for us. Its pursuit is one of the highest grounds we can achieve during our lifespan. “I’ve lived a life that’s full” is what we want to say when
Well…that went down quickly. 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
The bears are roaming. And while their sudden emergence likely spelled losses for traders far and wide, the pain doesn’t have to persist. I look at this as a “fool me once, shame on you; fool me twice, shame on me” situation.
≈ 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
≈ In Technical Analysis We Trust. ≈ Technical analysis is amazing. Some of our coaches at Tackle Trading use it in their day-to-day decision making and other coaches ONLY use technical analysis as the basis for their trades. Technical analysis can help you determine when to enter a trade, when to exit a trade and
Today the “theory” part of our blog title takes center stage. Increased chatter on the impact of higher interest rates is making the rounds, so I wanted to bring it to your attention if it wasn’t already.
Hey Rookie Bloggers! Last week we talked about position sizing and understanding, fully, the trades we enter. This is paramount to trading success and anyone who has put real money into the markets and has felt the sting of a position or market reversal can attest to just how important these two principles are.
≈ Keep it in your pocket. ≈ Last Tuesday we published the Absolute Truth n.5: 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 (Time = Uncertainty). This train of thoughts leads us to the Absolute Truth n.6. Absolute
≈ Learn to manage your drawdowns. ≈ Volatility in the markets can feel rough. When you’re making money, you feel like a Rockstar. When you lose money, you feel like a dog. But, remember, both are a part of every trader’s journey. There’s a concept in trading called a drawdown that every trader needs to
≈ Keep it in your pocket. ≈ And we are back with the last two Absolute Truths. This week we will be featuring numbers 7 and 8. Absolute Truth n.7: Time is the option buyers worst enemy and the option sellers best ally. Let’s stage the scene: Think about some of your monthly expenses like
Once upon a time, I wrote guest articles for an options focused magazine. One of the features I contributed to was titled “Wolf Against the World.” It involved a pro/con discussion on a particular topic such as buying extra insurance for an Iron Condor portfolio or the merits of using one options strategy every month
≈ Keep it in your pocket. ≈ Today we have the last Absolute Truth, number 8. Absolute Truth n.8: Option buyers have rights. Option sellers have obligations. Let’s keep it simple: If you sell an option contract (a.k.a. naked position), either a call or a put, you incur in some obligations. If the option gets
Traders, I had an Urkel moment in the market last week on a swing trade that was a big oops and luckily I live to tell it. Yes, EARNNGS!
≈ Was it in a dream, was it just a dream? ≈ If you watch Mr. Musk’s interview to Joe Rogan, carefully, and obviously skipping all the nonsense that emerged from the pot part, you’re going to see that he is just a hardcore engineer with lots of ideas. The difference is that his ideas
When markets crash, tactics that used to work don’t and those that used to not work do. But before you go hog wild embracing these once-unfavorable-but-now-favorable techniques, you need to recognize something. Once the world turns right side up again (and it will) these seemingly smart ideas will become stupid once more.
Happy Halloween Rookies! The markets have been the scariest thing about the month of October for most people. Halloween has brought a small reprieve to anyone that has been sitting on the long side of things. Are you one of those folks that are still sitting on the long side? Or do you find
≈ Before the FED, After the FED ≈ “In the beginning, there was no FED, and there was darkness.” “[…] It is not that the USA, without the FED was like a no man’s land. It is not the U.S. Federal Government wasn’t meddling with banks long before the FED either.” “[…] The FED is
≈ Just Over Broke Statistics ≈ Every month, the Bureau of Labor Statistics releases their Unemployment Rate and report. This report details the percentage of the total workforce that is unemployed and actively seeking employment during the previous month. The numbers have been impressive. And, they’ve been impressive for a long time. The unemployment rate
≈ Fasten your seatbelts. ≈ On Monday, negative headlines can create huge waves of panic and the market can fall hundreds of points. On Tuesday, positive headlines can create euphoria as disaster might appear to be avoided. The market responds by going up hundreds of points. Too many traders attempt to make sense of this
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