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The one and only “time-aggressive” position I have is on EFA, which are March $80 puts. I’m up 22% on them, but I will ditch ’em if EFA crossed above the dashed line. This line represents the resistance expressed by the tag of the broken trendline.
I still think the (sloppy) diamond pattern could turn out to be a big winner, but, yeah, we need to get some selling going on here!
First things first—don’t let the term “Greeks” intimidate you. They aren’t ancient riddles, nor do they require decoding with mystical insight. The Greeks are simply tools—powerful ones—that help you understand how options behave. For anyone serious about trading options, the Greeks are not barriers but bridges to better decision-making.
Today, we’ll focus on one of the most fundamental Greeks: Delta. This isn’t a comprehensive dive, just a starting point. Think of it as laying the first brick in a strong foundation. In the coming weeks, I’ll expand on each of the Greeks with detailed discussions.
(more…)Most traders focus on price. They watch charts, analyze earnings reports, and debate whether a stock will go up or down. But price alone doesn’t tell you much. Expectations do.
In options trading, the market’s expectations aren’t hidden—they’re built into the options prices themselves. The expected move tells you how far a stock is likely to move over a given period, based on what the options market is pricing in. While it won’t tell you which direction a stock will go, it gives you a reasonable estimate of how much movement is already anticipated. For traders, that information is far more useful than any price target.
(more…)If you’ve spent any time in the world of options trading, you’ve probably seen the headlines.
“How I turned $500 into $10,000 overnight!”
“The one trade that could change your life!”
“Make 300% in a week with this simple strategy!”
The financial world has always been a magnet for hyperbole, but options trading takes the cake. The lure of quick profits, the dream of striking it big—it’s the same intoxicating narrative that keeps gamblers glued to the roulette table in Las Vegas. And just like the roulette table, the odds are rarely in your favor if you don’t understand the rules of the game.
(more…)
