Bollinger Bands are a technical indicator created by renowned technical trader John Bollinger in the early 1980's. There are numerous publications, as well as John's website www.bollingerbands.com, that go into great detail on this popular tool used by many traders. This article will touch on the basic parameters of Bollinger Bands and … [Read more...] about Technical Indicators 101: Bollinger Bands in a Nutshell
The standard deviation of a particular stock or index will inform you about the possible movement over a period of time, based on probabilities. Key factors of standard deviation The higher the volatility, the bigger the standard deviation. The further out in time the date is, the bigger the standard deviation. The larger … [Read more...] about What is a Standard Deviation and What Does it Mean for Options Traders?
One measure of risk that is common for option traders is to use standard deviations of movement. I built a popular Standard deviation calculator to calculate the range of movement for a given set of numbers. It was accessed nearly 500 times in the past week! An option trader can also use Delta to estimate the probability that an … [Read more...] about Is Your Trade As Safe As You Think It Is?