Theta Decay

Theta Decay Theta decay also known as time decay is the daily whittling down of an options value. Theta decay is much steeper the closer you are to the expiration of the option chain. Most option traders aren't aware that theta decay is actually closely tied to implied volatility. Theta decay is not linear because…

Implied Volatility

Implied Volatility What is implied volatility and how does it different from historical volatility? Most people get these two mixed up. Implied volatility is based on the options in a given chain. The Implied volatility is derived from the mid price of the actual bid and ask price for a specific option. You should know…

Introduction to Vertical Spreads

Introduction to Vertical Spreads How do you mitigate your risk trading options? Vertical spreads of course! Vertical spreads allow you to define your risk. No stop orders required. You know exactly what your risk is before you place the trade. Vertical spreads are a great way for new or experienced traders to profit in the…

Scalping Futures

Scalping Futures What do you do on a day when you're up almost $17,000 in your positions? You scalp future of course! Scalping futures can be a great way to hedge a big up day or just pass the pass the time. There are techniques to scalping futures that if done right be fun, profitable,…

Implied Volatility Scans

Implied Volatility Scans Comfortable with Implied Volatility? Now take your knowledge to the next level; learn to scan throughout markets finding precisely the implied volatility candidate you are searching for in seconds.

NYSE Bans Stop Orders

NYSE Bans Stop Orders NYSE bans stop orders. Should you care? TheoTrade takes the position of a professional trader and says no! Because no professional trader uses stop orders. They are ineffective. TheoTrade shows you a better way to manage your risk.

Save Time and Scan

Scan for Trades TheoTrade's, geek extraordinaire, Don Kaufman goes on an all-out rant pertaining to why looking at charts should be left in 1999 and scanning is a traders tool for the here and now. Save time and scan for what you are looking for!

Why You Got Stopped Out of a Trade?

Why You Got Stopped Out of a Trade? Have you been stopped out of a trade? Sure you have, admitting it is the first step. Learn the mathematics behind why you got stopped out and how to avoid the pitfalls of classical trading ideals. You may never look at stop orders the same again

Expected Move Explained by Don Kaufman

Expected Move Don Kaufman explains how to find the expected move for any option chain in the thinkorswim platform and the probability of success when trading options. Free E-book The Rebel's Guide to Trading Options: The Basics and Beyond

Expected Move Calculation

Expected Move Calculation Expected Move Calculation. Math Geeks rejoice! Don goes for it all as he displays how the expected move calculation works and how you can create your own versions of this all-encompassing equation.

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