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In this article, I’ll introduce Monte Carlo simulations, explain their relevance in trading, and describe a specific options trading strategy I’ve developed using these simulations. I’ll...
As is always the case, though, there is some flipside to that risk. When they go well, crypto trades enjoy benefits including the potential...
Figure 1 TLRY iron fly on 13 September 2018 Options have infinite combinations but the classic hypothetical risk free trade is the credit spread...
Performance Dissected Check out the Performance page to see the full results. Please note that those results are based on real fills, not hypothetical performance, and...
This skill is about blending analytical prowess with a dash of intuition. Think of it as chess, but the pieces are stocks, bonds, and...
In both cases a (usually near the money) option is sold and used to partially fund the purchase of two (or more) out of...
Introduction To The Long Put Strategy Options are used by investors to take advantage of a wide range of projections on the state of the...
Introduction Options can provide investors with an extremely versatile tool that can be used to bet on market direction or changes in volatility levels....
Definition of Delta Hedging Delta hedging is a strategy in which an investor hedges the risk of a price fluctuation in an option by taking...
A diagonal spread is an options strategy that involves buying (selling) a call (put) option at one strike price and one expiration and selling...
By re-centering their positions, traders can benefit from the inherent profit associated with being long gamma and continuously re-hedging their delta exposure. The...
In a word, trading is really hard. Markets are extremely competitive. The smartest people in the world flock to financial markets looking to...
The most obvious way to demonstrate this is showing you a payoff profile (the possible path of your P&L for the trade at different...