Renegade Inc. - For Those Who Think Differently... Institute for New Economic Thinking. The Modern Money Network | Promoting Public Understanding of Money & Finance <br /> Through Education, Discussion & Scholarship. Best International Stockbrokers - a review and fee comparison. Bullshit Free Guide to Iron Condors - Options trading IQ. Interactive Investment Education - Investing Teacher. Evaluating Paid Investing Newsletters. Investment newsletters have been around for decades, but questions have always lingered as to their usefulness.
We will examine the different types of investment newsletters, pricing structures and availability in an effort to help individuals determine whether or not newsletters can enhance their investment returns. Types of Newsletters Any analysis of investment newsletters must begin with an identification of what type of investing is being considered. Broadly speaking, investment newsletters might be broken up into the following categories: individual stock recommendations, market trading strategies, overall market/economic commentary and specialty newsletters (i.e. natural resources focus or real estate focus.) Many newsletters offer individual stock recommendations based upon some valuation methodology.
These newsletters often examine small-cap stocks or even penny stocks, on the theory that these are the securities most likely ignored by the larger Wall Street analysts. Options Trading With The Iron Condor. Most investments are made with the expectation that the price will go up. Some are made with the expectation that the price will move down. Unfortunately, it is often the case that the price doesn't do a whole lot of moving at all. Wouldn't it be nice if you could make money when the markets didn't move? Well, you can. This is the beauty of options, and more specifically of the strategy known as the iron condor. How to Take OffIron condors sound complicated, and they do take some time to learn, but they are a good way to make consistent profits. See: Option Spreads StrategiesA credit spread is essentially an option-selling strategy.
To create the full iron condor, all you need to do is add the credit put spread in a similar manner. SEE: Policing The Securities Market: An Overview Of The SEC. Tips for a Smooth FlightThere are several things to keep in mind when using this strategy. But there is another thing you must watch out for: you must not ever take a full loss on an iron condor. Frequently Asked Questions | Option Trading Guide. What is the Option Trading Guide? This site is a growing resource aimed at providing you with graphical and easy-to-understand guides on the basics of stock option trading, as well as more advanced trading strategies and technical analysis concepts and indicators.
What are stock options? In the context of option trading, stock options are NOT the employee stock options given by companies to their employees in lieu of (or in addition to) standard remuneration. Stock options here refer to a form of trading derivative based on publicly traded stock equity. Buying an option gives you the right (but not the obligation) to buy or sell its related stock at a specified future date. A Call option gives you the right to buy its related stock, while a Put option gives you the right to sell its related stock.
Read more What are all these option strategies with funny names (such as the Iron Condor)? The concept of option trading really boils down to the basics of buying and selling Call and Put options. Understanding and Trading the VIX - Your Ultimate Resource | Options trading IQ. EmailShare 103EmailShare As an option trader, you need to be following the VIX every day. If you’re not, you need to start now. Gaining an understanding of the VIX will make a significant difference to your trading. Luckily for you, I’ve put together the ultimate resource for understanding and trading the VIX and its related derivative products. In this post, I’ll explain in detail what the VIX is, what instruments are available to trade volatility and some pros and cons of using VIX derivatives to hedge your portfolio from fat tail or black swan events. What is the VIX? The VIX is a market volatility index created by the Chicago Board Options Exchange (CBOE) that reflects the markets expectations for volatility over the next 30 days.
You have probably heard the VIX referred to as the Fear Index due its characteristic of gauging future price volatility (high volatility often signals financial crisis). Why Should You Care? History of the VIX Download the full VXO data here. VIX Derivatives. Options Trading Explained - Free Online Guide to Trading Options. Program Overview. Top 15 Most Popular Business Websites. Sharpe Ratio Definition.
What is the 'Sharpe Ratio' The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations. It was developed by Nobel laureate William F. Sharpe. The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Subtracting the risk-free rate from the mean return, the performance associated with risk-taking activities can be isolated. One intuition of this calculation is that a portfolio engaging in “zero risk” investment, such as the purchase of U.S.
Treasury bills (for which the expected return is the risk-free rate), has a Sharpe ratio of exactly zero. BREAKING DOWN 'Sharpe Ratio' The Sharpe ratio has become the most widely used method for calculating risk-adjusted return; however, it can be inaccurate when applied to portfolios or assets that do not have a normal distribution of expected returns. Applications of the Sharpe Ratio Criticisms and Alternatives. Traders' University. Mechanics of a Short Sale Running Time: 2 mins The Mechanics of a Short Sale is a tutorial that is designed to show you the inner workings of how a Short Sale works.
Introduction to Technical Analysis Running Time: 24 mins The Technical Analysis Tour explains the important role of the chart analyst and how technical and fundamental analyses differ. Mechanics of a Foreign Stock Transaction Running Time: 17 mins The Mechanics of an Overseas Stock Transaction Tour describes the choices facing investors wishing to invest in stocks denominated in currencies other than their base domestic currency. Contracts For Difference (CFDs) Running Time: 12 mins Investors using Contracts for Difference or CFDs are making almost identical decisions to those using ordinary shares in a company. I have read the User Agreement and wish to watch the tutorial.
Options 101: Pricing Running Time: 9 mins The Options Pricing 101 course is designed to familiarize traders with the variables in options pricing models.