Here is the New Trading Video for ya’ll. As a reminder, the markets will be closed on Monday in observance of Memorial Day. Additionally, the Option Writers Report will be going out tomorrow. The last two weeks have been extremely profitable for Option Writers as many of you have already experienced. Onto the most important ...…
Well, the markets sure did put on a great show for us today. They sold off wonderfully this afternoon right down to my 880 targeted support level on the S&P 500. Below is the intra-day chart from earlier today with the level in GREEN I talked about on this mornings post. While this picture isn’t updated, the ...…
Did anyone honestly believe that stocks could continue up week after week. Come on, let’s start getting real here. Again, the charts have been screaming this for weeks to come. Hopefully the correction will be just as significant as the rally up. Futures are still low as of this writing but we have some critical ...…
The Option Writer offers an extremely affordable and realistic membership. There are no Gold or Silver membership levels – everyone is equal around here. With that, a membership to Option Writer includes: Trading Alerts - As a member you will instant access to all of our past and current option trades with complete analysis from profit ...…
Option Writer members have the unique ability to have our trades automatically executed in your account. This service is completely unique among all other advisory firms and is provided only for subscribers. As soon as we post a trade, it gets executed in your account. You never have to worry about missing a trade or entering ...…
First off we are sorry to hear that you want to cancel your membership…we never like to see our members leave, so if there is anything we can do that would make you stay please contact us and we will make the change right away! However, if you are adamant about cancelling your membership please do so ...…
Delta is the variable that tracks the relationship between the change in the price of an underlying stock and the change in the value of the option contracts associated with it. Delta ranges in value from 0.00 on the low side, to a maximum of 1.00. An option with a Delta of 1.00 means that ...…
Gamma is one of the least understood but most powerful of the options Greeks. Gamma is the variable that tracks the rate of change of Delta. In the previous example, we compared Delta to horsepower. Keeping with that same example, Gamma is the acceleration or rate of change of the dragsters. How quickly can each ...…
Theta is used to track the rate of decay of the time value of an option. The time value of an option is the variable piece of the option’s value. Here’s an example: Suppose you identify a stock that is currently trading for $21.35 per share, and you decide to buy the $20 strike price ...…
Vega is the Greek letter used to track the change in an option’s theoretical value, given a 1% change in the volatility for the underlying stock. Here’s one way that we can actually make use of the information: let’s say there is sudden good news in a stock. When the news hits the wires, the ...…
As we discussed earlier, historical volatility is a useful measurement of the price movement of a stock over a given period of time. Historical volatility can be thought of as a sort of baseline standard for the price movement of a stock. The implied volatility, by contrast, is a kind of measurement of the expected ...…
Historical Volatility is a measurement of the price movement of the underlying stock over a 6-month period of time. This value can tell us what types of price fluctuations we could expect from a stock, helping us to identify stocks that fit our personal investment strategy. Highly volatile stocks are subject to wide, quick price ...…
What is option “premium”? The premium is the price at which an option trades, and is paid by the buyer to the writer (seller) of the contract. The premium paid by the buyer is non-refundable payment for the rights inherent in the long contract. The writer (seller) of an option contract keeps the premium received, ...…
In-the-Money (ITM), Out-of-the-Money (OTM), and At-the-Money (ATM) are three terms used to describe the relationship between an option’s strike price and the current price of the underlying stock. A call option is considered to be In-the-Money (ITM) when the stock is trading higher than the option’s strike price, Out-of-the-Money (OTM) when it is trading for ...…
