Trading the Surge in Corporate Bankruptcies and Defaults

Big Downer: Managing Major Market Corrections

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As fear builds in the stock market, the stampede to buy puts can set off a chain reaction in the marketplace that can exacerbate the down move—creating that so-called “explosive” feeling that often accompanies corrections. 

Looking for Liquidity?

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Liquidity is essential to successful trading Traders think of price discovery—an essential characteristic of any market—as the process that sets spot prices. It’s a matter of buyers and sellers making transactions. Having lots of participants results in a liquid market that sets prices efficiently and promotes quick execution of trades.  In the world of fine … Continued

Four Pillars of Options

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These four elements can provide the key to successful investing. In statistics, the law of large numbers says that as the sample size grows, outcomes will more closely resemble the expected probabilities. Flip a coin 10 times, and it may come up heads 80% of the time. Flip a coin 10,000 times, and the outcome … Continued

Tom Sosnoff Builds Futures

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Investors and traders looking to expand their market activities beyond stocks, exchange-traded funds (ETFs) and equity options may want to tune into a recent TradeTalk with tastytrade founder and co-CEO Tom Sosnoff. The focus of the TradeTalk installment is futures and futures options—specifically, how to build and manage complex futures portfolios. Aside from founding and … Continued

Trading the Small Stocks 75 Index

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In the United States, the most widely followed stock market indexes are the Dow Jones Industrial Average, the S&P 500, the Nasdaq and the Russell 2000. The Small Stocks 75 Index (SM75), introduced by the Small Exchange, provides yet another important window into the overall performance of the U.S. stock market. Consequently, it serves as … Continued

Does Volume Predict Future Price Direction?

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When trading in the financial markets, it’s typically advantageous to target positions with high liquidity. High liquidity helps ensure that pricing in a given market is efficient, providing the best possible execution prices for investors and traders. Likewise, liquidity is critical because market participants generally seek to exit positions as easily as they enter them. … Continued