Tips for Expiring Options and Futures Positions
Options and futures are unique because unlike many other securities these derivatives have finite lives, and therefore specific expiration dates.
Tips for Expiring Options and Futures Positions
Contrarian Trading and the Cryptocurrency Correction
A correction in the cryptocurrency sector has seen Bitcoin prices drop below key support levels, which could mobilize contrarian investors and traders betting on a big reversal.
Soybean and Corn Futures Spike on Drought and Chinese Buying
The American agricultural commodities sector has been hot in 2021 as Chinese buyers have reentered the export market, and a widespread drought has raised supply concerns.
Trading Lessons From June’s Quadruple Witching
“Quadruple witching” refers to the third Friday of March, June, September and December, and represents the converging expiration of four different products.
Best (Forex) Bets for the Euro Championships
The euro has been trading sideways against the dollar for nearly a year, but recent moves suggest volatility may once again return to this well-known foreign currency pair.
Understanding the Black-Scholes Options Pricing Model
The Black-Scholes model, which was first devised by Fischer Black and Myron Scholes in 1973, has become an ubiquitous options pricing model because it largely relies on easily observable financial data.
Trading Inflation Expectations
Spiking inflation has been a hot-button topic in 2021, but U.S. Treasury yields have actually declined in recent weeks, suggesting there may be more to this story than meets the eye.
Pro Tip: Volatility is Seasonal, Price Direction is Not
Research conducted by tastytrade suggests that market volatility tends to be seasonal—historically dipping in summer and peaking in fall—while price direction is not.
Trading Backwardation and Contango in Bitcoin Futures
Volatility in the cryptocurrency market has picked up in recent weeks, and the current term structure in bitcoin futures suggests more downside may lie ahead.
FOMO is Not Normal, and Not a Trading Strategy
FOMO (the fear of missing out) has become a popular buzzword during the recent everything rally, but this psychological state of being doesn’t necessarily fit within systematic, disciplined trading/investing approaches.
