Collars are protective strategies involving options that are used after a long position in a security has already achieved a significant increase. Investors use the collar strategy through the purchase of out-of-the-money put options and the selling of out-of-the-money call options. This techniques is also known as hedge-wrapping. In general investing terms a collar is […]
Perhaps one of the scariest sounding terms on Wall Street is the “death cross”. That combines two words that you never want to hear in your everyday life, but they have a particular meaning on Wall Street. If you play it a certain way you may even be able to profit from it. The […]
When it comes to trading, numerous strategies can be used with the aim of financial success. They (strategies) are designed to achieve profitable returns by either going long or short in the markets. For a strategy to be termed as good, it should be verifiable, consistent and objective. What is a straddle? This refers […]
The long straddle is a strategy for the trading of options where the trader purchases both a long put and a long call for the same security, strike price and expiration date. The strike prices are usually in the money or close to the current market price for the underlying asset. The long straddle is […]
A Golden Cross is an indicator for bullish breakout patterns that are formed when an asset’s short-term moving average (STMA), such as the 50-day, crosses over its long-term moving average (LTMA), such as the 200-day. These crossings signify breaks above key levels of resistance. Since the LTMA indicator is more influential, golden crosses are […]
The OTC markets, short for Over The Counter, allows for the trading of assets without the formal structure of an official exchange. This means that the trades are made in private between clients and dealers, or intra-dealer trades, without the price or terms of the trade being made public. This arrangement is in stark contrast […]
