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OptionTiger

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Everything posted by OptionTiger

  1. The Iron Condor has two sides to it – the good and the ugly. It’s one of the most popular Options strategies out there, for good reasons. But when Iron Condors (or Credit spreads more generally) get into trouble, it’s not fun. You give up gains you made in 4 or 5 trades at one time.
  2. Volume analysis is often an under-rated indicator. If Volume is normal, it really doesn’t say much. But when you see something out of the ordinary, like very high on a given day, you must conclude that Smart Money is active. And the trick is to judge whether that high Volume was buying or selling volume.
  3. As of next week (July 15th specifically, Tesla Motors (TSLA) is finally getting the respect it may deserve. TSLA enters the Nasdaq-100 (NDX Index) on that day, replacing Oracle (ORCL), which moves to the NYSE. TSLA’s market cap is $12B, no chump change. However, critics have arguably not given it the respect many say it deserves. And the stock itself has suddenly burst into the scene, and in the last 3 to 4 months, has been one of the biggest movers in terms of Average True Range (about 8 to 10 points per day). To be clear, TSLA is far from profitability, and general consumer perception places their cars in the “exotic” category, something the company may have worked on intentionally. But the cars are stylish, have serious performance and most importantly, are 100% battery-run. You’ve gotta love that.. As for the stock, this could be a boost since index funds are bound by their charter to add new entrants to their portfolio. Short-term BULLISH… Do you trade TSLA ? Let us know. If you don’t, you should look at the Options. It’s definitely one of the more exciting, tradable Options right now…
  4. Great - will check it out
  5. If you’re somewhat new to Options, you must have heard about the Option Greeks. In fact, a common rookie mistake with Options traders is that they ignore the importance of the Option Greeks (Truth be told, I’m guilty – I ignored them for almost 6 months). This is easily one of the biggest mistakes a newbie Options trader can do. Let me give you a simple analogy, and perhaps the importance of Option Greeks may hit home.
  6. There was an article on Zerohedge yesterday on High Frequency Trading (HFT). Summary of key points - Yesterday’s ISM numbers were supposed to be released at 10 am ET - Some HFT firms apparently got the information 15 milliseconds earlier and executed large orders on the SPY (at 9:59:59.985 am) - Similar activity can be noticed on the ES futures 8 milliseconds prior to 10 am (9:59:59.992 am) Click here to read more, http://www.optiontiger.com/high-frequency-trading/
  7. Apparently 401k accounts are not meant for "speculation." But i agree - these strategies could be more risky at times - you can't hedge them appropriately because you don't have all the available strategies.
  8. Larry, Steve is right. There is no substitute for practical application and seeing the Greeks in action. The problem with a book is that most of the time, you don't get the practical side of things. I've mentioned this to you before, your best bet is to take up on my earlier post where I gave free access to my cutting-edge course. Take the course on Greeks, and you'll be clear in these concepts. Here it is - https://www.udemy.com/learn-options-trading/?couponCode=TLGreeks. Actually, anyone on this post is welcome to take it. There seems to be a lot of discussions and a lot of confusion on this thread.. Best Hari
  9. Larry, with a good trading platform, you can simulate the 3 main parameters for Options - 1) Price movement 2) Changes in Implied Volatility and 3) Passage of time. You can simulate all 3 at the same time as well. On the TOS platform, it'll show you what the Greeks will be for your simulation. In a simplistic sense, this is all you need..
  10. Hi Derivs, How are you? This is a great forum.. Look forward to great discussions. If in case you need help with regard to Options, please feel free to ping me. Hari Swaminathan OptionTiger
  11. Hi hackeysack, Welcome to the forum – look forward to chatting here.. Hari Swaminathan OptionTiger
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