Understanding And Taking Advantage of Monthly Seasonality of Options Trading
If you’re new to the world of options you’re probably a little confused by the monthly seasonality patterns that occur in options trading. Is short seasonality of options trading is the “historic” or “average” price patterns of options during different time periods in an option expiration cycle.
As a professional options trader, I always like to have some hard guidelines to follow. Here are 7 must know rules for options traders at all levels that could make you a more profitable trader.
Never, under any circumstance add to a losing position! This of course is the “Golden Rule” for traders. DO NOT pile bad trades on top of bad trades. This never ends well.
GM IPO Starts Trading – 3 Reasons Why This Is A Horrible Investment
Today Government Motors – I mean General Motors – has it’s new IPO this morning starting trading a $33. Based on the analyst estimates and hedge fund reports I’m reading it looks like the new IPO could trade as high as $38 by the end of the day.
Either way I still am going out on a limb and saying this is a HORRIBLE investment. Here’s why:
n Option Theta measures the rate of decline in a stock option due to the passage of time. Theta is also most commonly referred to as Time Decay. Theta belongs to a group of stock option measures called “the Greeks”. For the purposes of options trading, Theta is expressed in terms of the dollar value that a stock option will lose on a daily basis regardless of where the stock trades.
How To Be A More Profitable Options Trader With Technical Analysis And Chart Pattern
Comparing The US Stock Market To Greece’s Stock Market
While of course not even close as far as size, GDP, etc. – there are some very similar technical tendencies that look amazingly similar when comparing the US stock market currently to Greece’s stock market. Of course this is just a visual comparison, but it definitely makes you think about what “COULD” happen very fast for US stocks over the next year.