Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Options prices are governed by price of the underlying, time, liquidity and volatility.
We can choose instruments only with good liquidity (without it we are at a severe disadvantage)
Volatility mean reverts. We need to buy cheap volatility and sell when expensive. Pre-earnings, nearly all instruments have a sharp rise in volatility that accelerates from D-7 to D0. IV rank/IV percentile will tell us if an instrument has cheap or expensive volatility.
Time. Options decay with time. Because of this we cannot buy a put and call at the same time expecting certain profits. IF volatility is high enough, it can cancel out the effect of time. Pre-earnings this often happens. (more…)
SlopeCharts has had Fibonacci Retracements ever since it was launched last year. Today, however, we have tripled the number of Fibonacci tools, adding both the Arc and the Fanlines. The icon still looks the same, but now when you click the seashell, you will see three tool choices.
To use any Fibonacci tool on a chart, choose the seashell icon:
Three tool choices appear which are, from left to right, price retracements, arcs, and fanlines. Click any of the three to choose that tool (or click the seashell again to deselect).
Normally the weekly market video from Slim is Slope’s “Saturday Night Live”, but I need to buy some more time to finish up these new drawing tools in SlopeCharts (there are no holidays when you’re running Slope, including weekends…….) so I’m going to deploy this video now: