Sep 4, 2010 | Technical Analysis
Volume is the number of shares or contracts that trade over a specific period of time, usually one day. On a chart, volume is represented as a histogram (vertical bars) below the price chart. This indicator is an essential part of every technical formation as a price...
Aug 22, 2010 | Option Trading Basics
So you sold an options contract for $380 and generated a 3.5% 1-month return. Did you ever wonder how the market determined the value of that contract to be $380? The simple equation that most of us know and understand is the following: Option premium = Intrinsic...
Aug 14, 2010 | Investment Basics
I am a big believer in setting yourself up for success. This is accomplished through education, motivation, commitment and organization. Investors reading this article and others are definitely seeking education, and are motivated and committed. However, without...
Jun 13, 2010 | Investment Basics
Triple Witching Friday…..what a scary term! Is it the day after Halloween? NO. Is it a hazing ritual for a college fraternity? Not even close. Well then, what is it? It is an event that takes place when stock index futures, stock index options and stock options all...
Jun 6, 2010 | Option Trading Basics
Educated covered call writers know that it is critical to sell our options early in the 1-month cycle. I always try to sell my options in the first week of a 4-week expiration cycle and no later than the beginning of the second week of a 5-week cycle. The reason has...
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