Jatin Pant The cryptocurrency market is inherently unstable, making navigation for traders and investors impossible. Thus, understanding price behaviors, especially in the aftermath of abnormal returns, can help in strategy formulation to get profitable strategies. The first of its kind groundbreaking study is introducing “Momentum Effects in the Cryptocurrency Market After One-Day Abnormal Returns” by Googly Elmo, … Read more
Delta is the measure of the correlation between the option price and the movement in the price of the underlying. It’s a value between -1 and 1, indicating how much an option’s price will change for every $1 change in the underlying stock price. For instance, an option with a Delta of 0.80 implies that … Read more
Understanding the dynamics of the stock market requires a combination of technical analysis, fundamental evaluation, and strategic foresight. Through this week’s market insight, we look at how oversold stocks have implications on valuation risks and, therefore, trading opportunities around companies such as Aszenica, Adobe, Caterpillar, ADI, and Apple. We also provide an in-depth summary of … Read more
The stock market is fickle, and finding undervalued stocks with real growth possibilities is not an easy task to accomplish. Companies like Bristol Myers and Meta Platforms have traded in the market below their fair value, while their fundamentals are still pretty solid and their futures show promise. This underperformance has provided a very unique … Read more
Identifying the best growth stocks is not an easy task, especially when firms are trading at a discount or are recovering from very difficult times. However, for investors willing to look beyond short-term volatility, stocks like Dexcom, Intel, and Square, now Block, offer big growth potential. These companies are in a great position to take … Read more
The NASDAQ 100 had a close to a 52-week high but failed to catch up fully; it is lagging technology sector performance. This means that the market is changing, with technology, which has long been a leader, suddenly playing second fiddle to other sectors. Small-cap stocks, in the form of the Russell 2000 (IWM), and … Read more
The fact, when a stock doesn’t trade options, then this cannot be calculated. IV reflects what the market perceives about future price fluctuations based purely on supply and demand in the options market. Market makers and traders rely on models to determine the “correct” IV for a stock, often engaging in arbitrage to exploit perceived … Read more
The Black-Scholes model, initiated in 1973 by Fisher Black, Myron Scholes, and Robert Merton, gave the world its first mathematical basis for modern options pricing. The method takes on all of these key variables—including stock price, strike price, expiration, interest rates, dividends, and implied volatility—to find the theoretical value of an option. However, while this … Read more
Options trading may seem complex, but at its core are four basic strategies. These strategies are the foundation of every advanced options trade, so they are crucial for anyone who wants to be able to move through the market with confidence. Buying Calls Definition: Buying a call gives you the right to buy an underlying … Read more
Credit spread trading is one of the most popular options strategies, which allows traders to generate consistent income with controlled risk. Automating the process will help the traders streamline their workflow considerably and, in turn, allow high-quality setups without manual efforts. Here’s how to properly automate credit spread trading to achieve maximum profitability while having … Read more