Most traders’ approach to researching, analyzing, and planning a trade evolves over time. When I first started trading, I was just looking for someone to tell me what trade to…
Category: Trading Tips
The Consumer Price Index, an Important Gauge of Inflation
To measure different aspects of inflation, various indices have been devised including:The Consumer Price Index (CPI), which measures inflation as it affects consumers’ daily spending,The Producer Price Index (PPI), which…
Utilizing the VIX as a Hedging Strategy
Financial uncertainty, high inflation, considerable equity selling, and recession fears characterize the current financial situation. Since the Covid-19 crisis in 2021, the VIX index, a well-known indication of market volatility,…
Why Options Pricing Theory is Important to Your Trades
When options pricing theory is discussed, many retail traders’ eyes start to glaze over, or they click elsewhere. Traders will ask, “why does options pricing theory matter to me –…
The Wage-Price Spiral
In light of the high inflationary environment prevailing since the beginning of 2022, the threat of a wage-price spiral has emerged. Many economists are concerned about the economic consequences and…
The Debate: In The Money vs. Out Of The Money Options
Everyone seems to have a strong opinion: “I never buy out of the money (OTM) options; they are a waste of money” or “I never buy in the money (ITM)…