/investing

The VIX, commonly referred to as the “fear index,” is closely watched by option traders and provide mixed messages. For a great discussion on what the VIX is conveying check out these discussions at TradeKing. The VIX is calculated by averaging S&P 100 Stock Index at-the-money put and call implied volatilities. The availability of the [...]

Recently, TradeKing’s Brian Overby had a nice discussion on the option Greek delta. Delta is a very important concept for an option trader to master. With that said, lets highlight some of the more salient points about this key Greek variable. Delta is a measure of the change in the price of your option relative [...]

Given the current economic climate, one would think the stock market should be down, but the opposite is true. The fact is, we are in a bull market. Last week was the one-year anniversary of the March 2009 bottom and, today, we have gains totaling 70% since last year. To capitalize on this market, one [...]

Beer is probably the recession’s lesser known golden child. Think about it: it’s a simple, relatively low-cost enjoyment doubling as a portfolio perk. TradeKing forum members agree (link). There’s little to dislike about beer stocks except, perhaps, deciding which company is the best bet. A tough decision, indeed. Perhaps this is one instance where personal [...]

Many traders avoid options because they find them complicated, especially when it comes to understanding the “Greeks”, or they look only at Delta, which is the percentage an option will rise or fall in relationship to a $1 movement in the underlying stock. Another important Greek related to options is Theta. TradeKing’s Brian Overby (link) [...]

For all you new option traders or individuals looking to get into options trading there is a terrific resource to get valuable education for free. The site is the Options Playbook powered by TradeKing, and it’s packed with valuable information about the options market. After reviewing the site you can locate and educate yourself on [...]

For all you people who like to own stock, and I am certainly in that category, you might want to consider the cash flow technique I’m going to talk about today on your next equity purchase, or even apply it to what you might currently own in your portfolio. It involves writing and rolling covered [...]

The United States is set to fight terrorism for many years to come, which should provide long-term growth opportunities for defense stocks and many traders are bullish on the sector. It should be noted that since the defense budget was disclosed on February 1, 2010, the SPADE Defense Index rose by 4.46% in February and [...]

When it comes to dealing with money, it is hard to keep our emotions in check. As a trader or investor, we are often plagued by the emotions of fear, greed and ego. This is especially evident after the rollercoaster ride in the markets during late 2008 and 2009. Many proponents of buy and hold [...]

Many people are baffled by options trading, but though volatile, a thorough understanding of how to purchase put options is not as daunting as it may seem. Put option, generally called a “put,” is a financial contract between two parties – the writer and the buyer of the option. The buyer purchases a short position [...]