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
I remember during market crashes in the past, Interactive Brokers (IB) increased the margin for many products.There was a lot of complaining about it on certain forums but I personally was happy to see the increased margins. As an IB customer myself, I like knowing rogue traders with too much risk are not going to destroy the brokerage … [Read more...] about Interactive Brokers Increases Margin Due to Brexit
When you determine the difference between a stock's implied volatility and its current IV percentile, you could have an edge in your trading. This could help you become a more consistently profitable trader. "If you want to have a better performance than the crowd, you must do things differently from the crowd." Sir John … [Read more...] about How Volatility Can be Used to Plan Your Entry Strategies
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?
Steve Lentz, from OptionVue and Discover Options, presented "Volatility Edge Analysis of the Russell 2000." Steve's data was very intriguing and showed how ofter option sellers have an edge on in the RUT. Steve is trying to use technical analysis to improve the edge and his results are promising. Enjoy the replay! Join us in our … [Read more...] about REPLAY: Round Table with Steve Lentz
I posted in the forums about seting up OptionVue correctly to get the correct greeks for VIX options. Jim sent me an interesting link to six figure investing's article on "Thirteen Things Your Should Know About Trading VIX Options." Bullet point number four says "The option greeks for VIX options (e.g. Implied Volatility, Delta, … [Read more...] about Are your Greeks correct for VIX options?