Liquidity and Open Interest
Do Liquidity and Open Interest Matter? How can I be sure that I can sell my DITM options? Can you show me some proof that you’ve done that? What if I’m stuck with them? What if no-one will buy them? I’ve been getting a lot of questions like this recently. It’s understandable; the market has been […]
Decisions, Decisions
Decisions, Decisions Well, so far September has been a real dud. Dismal. And it’s only got this week to redeem itself. We’re at an interesting place, sitting right on support – is it going to break down? I have had quite a few emails about limiting losses – understandable after the last couple of weeks. […]
Consolidation & Breakouts
Consolidation and Breakouts Well, it was a short, and rather disappointing, week last week. But not unexpected; a period of consolidation would be ‘normal’ market behavior. How long it will last is, of course, not certain. What is Consolidation? Consolidation simply means that it is a time period when a stock or ETF’s price moves […]
Out of the woods?
Are we out of the woods yet? It has been a more enjoyable week, especially on Tuesday when everything went up 1.5%. We are back over support, the 10 day SMA has turned north again, and we are well above any death cross, for the moment at least. I breathed a sigh of relief, as […]
Why are options expensive?
Why are options so expensive? Expensive options a great if you are a seller – not so good if you are the buyer, and in the ITM strategy we are the buyers of options. I have been getting a lot of questions about this recently so I though that I would do a section on […]
A Dismal Week
What a dismal week! According to the press it has been the worst week since March. Between the 6th and the 10th of March, the S&P dropped 4.6% (I’ve marked it on the graph below). That was nasty. This week, the S&P dropped 2.6%, which is not quite so bad – but still painful. Let’s […]