An option is at the money when its strike price is equal to the underlying security’s current market price. At the Money Example Suppose that an investor purchases a call option for the stock of company A with a strike price of $75. If and when the market price of the shares of company A […]
A box spread is an options trading strategy that uses a bull call spread and a bear put spread with the same strike prices to profit from arbitrage. When the available options for the box spread are priced favorably, a day trader can achieve a risk-free profit from the use of the box spread options […]
The hanging man candlestick is a chart pattern used in technical analysis. The hanging man candlestick is used to identify potential downturns in uptrends, as it signals bull exhaustion in fighting a growing bearish sentiment. Hanging Man Candlestick Example The hanging man candlestick gets its name from its appearance as a small body positioned above […]
A yield curve is a chart that plots the relationship between maturity and yield for bonds of equal face value and creditworthiness but different maturity dates. Yield Curves in Financial Theory Generally bonds of otherwise equal face value and creditworthiness with later maturity dates will require a higher yield to compensate for the greater uncertainty […]
Founded in 1996 by Nigel Hawkes, Hawkeye Traders is a day trading and educational company with a mission of helping traders attain their goals. For 20 years, Nigel spent thousands of hours coming up with reliable and non-correlated indicators. The reason for doing so was to have a true picture of how the market is […]
What’s up, everyone? All right, so here we are, Tuesday morning, another green day, 4,300 bucks. Nothing to complain about there. I mean, it’s continued momentum. The last … well, it’s been that last month or so, has just been really, really hot. I’m doing about $12,000 a week, so I’m just going to […]
Ever heard of the following adage “the early bird catches the worm.” Well, if you have and you are a trader, this should be your mantra. Learning how to trade the open is a skill every serious trader needs to know. This is when stocks make the biggest moves for us to capitalize on! Thanks […]
Everyone who is stuck in the day-to-day grind of modern life wonders about what it takes to become a millionaire. Are they born into it? Is it talent? Is it luck? Despite all the various reasons that people come up with for how to be a millionaire, the true answer is surprisingly simple: smart money […]
Hidden orders are an order option that some brokerages offer to mask the true size of an order. While not actually ‘hidden’, the brokerage will use various tactics to minimize the potential impact of a hidden order on the market, generally through breaking the order up into smaller pieces and using advanced algorithms to place […]
An order imbalance occurs when there are not enough buy or sell orders on the market to meet the demand for the opposite order type. Order Imbalances in the Market Order imbalances usually occur as a result of the release of important information, which drastically alters the market’s perception of a security and leads […]
