Options Volume and Open Interest
Options Volume and Open Interest What is options volume and open interest? How is options volume and open interest calculated? Options volume tells you how many contracts are traded today. Open interest is calculated at the end of the trading day and open interest will not change during the trading day. An open contract consists…
Capital Allocation and Implied Volatility
Capital Allocation and Implied Volatility How can you use implied volatility to help you allocate capital? In this video Don Kaufman of TheoTrade shares why you should look at the implied volatility of a stock before determining your capital allocation size. Different stocks and ETFs have different expected moves. Therefore you should not risk the…
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
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