OPTIONS

Sunday, August 31, 2008

Free Trading Educational Videos from Trading Gurus

Do you want to learn some trading tips & techniques from famous trading experts/gurus? Some more, it’s absolutely FREE….. Just want to share with you few wonderful trading educational resources to grab that opportunity.There are 4 trading educational videos from trading experts/gurus' seminar/conference, which you can watch for free:1) A New Look at Exit Strategies by Charles Le BeauCharles Le Beau co-authored a book on futures trading, Computer Analysis of the Futures Market. He is registered Commodity Trading Advisor (CTA) and a noted developer...

Sunday, August 24, 2008

Trading Quotes from “The Logical Trader” by Mark B. Fisher – Part 2

Go back to Part 1.There are some more good trading quotes from the book, The Logical Trader.Hope these can give you some insights for trading psychology.Why do I like this kind of trading quotes? Because in my opinion, trading psychology plays very important part in trading success.So, enjoy!I Have No ClueIf a market is making a substantial move and traders seem to understand why, this market trend is not going to last very long.However, if the market...

Saturday, August 16, 2008

Trading Quotes from “The Logical Trader” by Mark B. Fisher - Part 1

Recently, I just read a book authored by Mark B. Fisher, The Logical Trader.Although this book is not really one of my favourites, there are some good trading quotes that I like from that book. So, I think it may be good to share them here too.Here are the trading quotes:Have A PlanIn trading, as in life, you need a plan. This plan includes not only the micro – a strategy for each and every trade you make – but also the macro – meaning why you trade,...

Sunday, August 3, 2008

The Impact of IMPLIED VOLATILITY (IV) on OPTIONS GREEKS: Summary

The Impact of Implied Volatility (IV) on DELTAAssuming all other factors constant, when Implied Volatility increases, the time value portion of an option will increase.As a result, the delta of OTM (Out-of-The-Money) options will go up, whereas the delta of ITM (In-The-Money) options will go down.Nevertheless, the delta of ATM (At-The-Money) options will always remain at around 0.5.Why is it so?As discussed previously, IV has a very big impact on the option price. However, IV would affect only the time value component of an option's price, not...