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 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
Growing an options account consistently takes more than following tips or relying on luck. There are three critical factors that every trader must master to build a profitable and sustainable trading practice in the options market. Let’s dive into these three secrets and explore how they can help you grow your options account. 3 Tips … Read more
Credit spreads are a very forgiving strategy that carries a higher probability of success. It is perfect for beginners because of the following reasons: Mild Directional View You do not have to have a strong thesis about the movement of the stock. As long as you can identify a stock that is trending higher, lower, … Read more
The 45-day expiration is the “sweet spot” when trading credit spreads. This period is long enough to allow enough time for the trade to work in your favor without being too long to risk excessive gamma. Here’s why it’s effective: Time Decay Works in Your Favor As you get closer to expiration, time decay really … Read more