Term of the Day for Friday, March 05, 2010
Lookback Option
March 5th, 2010 — Binary Options
For Young Investors, Too Many Choices, Too Few Dollars
March 5th, 2010 — Binary Options
Your retirement may be decades away, but this is no time to procrastinate.
Last-Minute Strategies To Help Pay For College
March 5th, 2010 — Binary Options
Find out what to do when your kid is ready for higher education, but you aren’t.
8 Steps To An Organized Financial Life
March 5th, 2010 — Binary Options
Disorganization makes planning difficult, and that can cost you big time.
What are the exceptions to the premature withdrawal penalty rules for IRA accounts?
March 5th, 2010 — Binary Options
Binary Options Betting and Online Gaming
March 5th, 2010 — Binary Options
Equally Binary betting is a well recognized property of the online financial gaming. The recent ‘credit crunch’ has dramatically increased peoples awareness of financial market as well as interest, the knock on effect has seen a huge influx in the number of people interested in betting on financial markets as well as active investors increasingly [...]
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Binary Option vs Standard Vanilla Option
March 5th, 2010 — Binary Options
Binary Options are also known as digital options because of their on-off nature. These options are on when one is in the money and they are off when one is out of money. It is important to understand the difference between a binary option and a standard vanilla option. The biggest difference is in terms [...]
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Different types of Binary Options
March 5th, 2010 — Binary Options
Binary options (also known as “rebate” options), are vanilla put and call options conditioned by something else other than just the price and the expiration date. They refer to conditional scenarios that if come true, either validate or invalidate the option. The trader fixes the amount of the desired payout he will get if his [...]
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Binary Options Analysis – All Eyes on U.S Unemployment
March 5th, 2010 — Binary Options
he Dollar regained momentum Thursday as both the ECB and BOE failed to move markets. Both Central Banks left the key interest rate unchanged and with no change in their statements. The GBP did rally initially but gave back it gains by the end of U.S session. Only the CAD finished the day [...]
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Quick And Easy Tips on Choosing Effective Trading Software
March 5th, 2010 — Forex Options Trading
With the advancement of the Internet, more investment opportunities have opened up even for beginners. Startups can learn about the industry by simply buying stock trading software and fiddling through it until they get the picture, or they may simply download free versions from the Internet. Professionals, too, benefit greatly from trading software.
For many investors, [...]
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Portfolio Update, 3-5
March 5th, 2010 — Options Trading
New VIX Trade
March 5th, 2010 — Options Trading
Changeup to ITMN Trade
March 5th, 2010 — Options Trading
ITMN Results and the Video of Me Explaining the Trade
March 5th, 2010 — Options Trading
FDA briefing came out positive for Intermune, or something like that.
I’ve been talking about this trade for a few weeks now, noting the very bullish options activity that’s been going on in the name.
I chose Covered calls, buying common and selling the 12.5 calls– the stock’s now at 25-ish. Will exit or roll to a collar.
In this video interview with@howardlindzon, I talk about the trade and my expectations for the move. It shows a little insight on how I structure my risk given the current volatility of the underlying. The talk starts at 16:00 in.
Also, this was a trade for my subscribers, you should join up if you want to learn how to trade options.
Market Wrap, 3-4
March 5th, 2010 — Options Trading
Portfolio Update, 3-4
March 5th, 2010 — Options Trading
The Running on Fumes Chart Pattern
March 5th, 2010 — Options Trading
This is a pattern that pops up every once in a while during the opening session. It’s actionable and fairly reliable– and most importantly, it’s undersubscribed.
Here’s the pattern:
This pattern requires a little more context. First, we’re near the top of a potential trading range and have made lower intraday highs over the past two days.
This pattern only happens at the open, and it shows when the market is “running on fumes.” Essentially if we are getting a runup in futures but it’s not confirmed by the underlying markets, it is fadeable. This confirmation can be seen by looking at a basket of heavily traded names, or by looking at the TICK readings (yellow circle). If we don’t see extreme positive TICK readings, it’s time to be very skeptical of the upmove.
So when does the market fade? Well, the market structure generally changes around 10AM EST as different participants come into the market. The “10AM Turn” is quite reliable as a pivot point.