Flex Factor, Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
The VXX and UVXY Volatility ETFs were up sharply this week leading to a Critical Trading Question: Is it time to short VXX and UVXY? Background: Over the last five years the UVXY Volatility ETF has declined from a split-adjusted price of 25040.00 (not a typo) to the...
Book Reviews, Flex Factor, Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
To celebrate the New Year, the SpreadHunter Team is offering our non-definitive, entirely subjective and very opinionated list of the 10 Best Options Trading Books to Buy in 2016. Caveat Emptor: The written word does not always translate well to the the domain of...
Flex Factor, Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
The cornerstone of Modern Portfolio Theory is that Volatility Equals Risk. A similar concept exists in Pre-Modern Investment Theory: Safety Through Diversity. In the Pre-Modern example, diversification of assets leads to lower volatility by diluting outliers in the...
Flex Factor, Options Theory, Spread Trading Technique, Tactical Trading, Volatility Trading
As the expiration clock approaches zero, the risk in open spread positions will often increase dramatically. Consider a butterfly spread. If the underlying stock is in the money on one leg, the delta of the spread will explode as the in-the-money leg delta...
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