Writing a short duration put
Wednesday, 9 June 2021
You are about to write a limited buy order on a very liquid stock. Imagine what your stock broker might do.
Tuesday 27 Oct 2020
Three main subjects in this article: some explanations on historic stock market volatility and how it is derived, an overview of rallies and swoons both in the 21st and the 20th century and finally a discussion on the trend of volatility since the start of the 21st century.
Vigorous short-lived bear market bounces
Monday, 13 October 2014
There is nothing as vigorous as a bear market rally. After a severe swoon, the market gets oversold. Earlier sellers see an opportunity to get back in much cheaper, while cautious shorts may want to cover and lock in decent gains. When this mindset gets root among investors and speculators, a bear market rally is born. However, there is nothing as short-lived as a bear market rally. That's why I called them “bear market bounces” in the blog title.
May 13, 2012Monday, 13 October 2014
There is nothing as vigorous as a bear market rally. After a severe swoon, the market gets oversold. Earlier sellers see an opportunity to get back in much cheaper, while cautious shorts may want to cover and lock in decent gains. When this mindset gets root among investors and speculators, a bear market rally is born. However, there is nothing as short-lived as a bear market rally. That's why I called them “bear market bounces” in the blog title.
Derivative positions are accumulating profits… while sweeping on to a catastrophe
"JPMorgan May Be a Trading Accident Waiting To Happen" is what you may like to read on Jesse’s cross road café blog....
Nov 02, 2011
Time value Speculators familiar with buying options know it too well: the option value erodes over time if the stock stays level. The option value is composed of two...
‘Selling options’
Sep 10, 2011
It has many names: going short an option, writing an option, selling an option.An option basicly concerns a tradable contract initiated by the party going short the option. Without any party going...
Technical analysis is usually aimed at market timing and determining entry, exit and/or stop-loss levels. Some volume driven technical indicators are also useful in more historic perspective for investment analysts involved in investor behaviour...
Nov 27, 2010
Some traders claim it‘s foolish, others will tell you it ‘s smart.Buying a call option ‘in the money’, you pay up the intrinsic value: the actual stock price minus the strike of the option plus a premium, mainly depending on the time left to...
Nov 16, 2010
Historic volatility is calculated using a time series of index (or stock price) close values. It is defined as the standard deviation on the series of percentage day-to-day variations. When considering all day-to-day variations, we obtain one single...
Dec 9, 2009
De volatiliteit wordt berekend uit de tijdreeks van slotniveaus van een index (of aandeel). Het is gedefinieerd als de standaardafwijking op de reeks procentuele dag-op-dag variaties. Als we alle dag-op-dag variaties beschouwen bekomen we één enkele historische volatiliteit, ...
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