Spotting a market bottom with the put/call ratio
Historical data demonstrates that extreme readings in the put/call ratio have been a fairly reliable indicator when it comes to signaling potential market bottoms
Spotting a market bottom with the put/call ratio
Six Traders, Six Trades
A trading committee offers long- and short-term strategies for the new year Tony “BAT” Battista Bullish investors looking to take a long-term view could consider a very wide broken wing butterfly. It’s for traders with accounts of more than $100,000 who are looking for a risk-mitigating position. The potential payoff is $10,110, while the max … Continued
Meet Dino Karahalios
Home/Office location: Wauconda, Illinois Age: 68 Years trading: 16 How did you start trading? I attended a presentation by Tom Sosnoff, who was then CEO of thinkorswim. He spent a very generous amount of time answering individual questions and sharing his trading knowledge. I was ready to take more control of our savings from a … Continued
The Tick is the Trade
… and Other Essential Trading Advice A pro trader dissects the three pillars to successful active investing Everyone who trades options wants to make money doing it. But how does someone reach that goal? A lot of strategies, techniques and products might work. Or not. Yet, three ideas can tilt the odds in favor of … Continued
Your Thinking Must be Skewed
It’s said with good authority that volatility “skew” was born Oct. 19, 1987, when the magnitude of the market drop on Black Monday indicated all those previously out-of-the-money (OTM) puts that were now in-the-money had been much too inexpensive. Before volatility skew entered the world, the theoretical value of options was determined by a single … Continued