Archive for the ‘Trading Strategies’ Category

The Horizontal Spread

Monday, May 25th, 2009

Horizontal spreads are closely related to vertical spreads. The technique always involves trading at the same moment options of (nearly) the same type. Nevertheless, while the vertical spreads are trading options with the same expiration date, the horizontal spreads keep the same strikes. This, on the other hand, means that horizontal ...

Test your strategies in real-world real-time conditions

Monday, May 18th, 2009

There is a lot of literature and many websites on the internet available about the mathematical fundaments of financial derivatives and all the deriving strategies for trading and investing. Nevertheless you have to always keep in mind that, no matter how good the strategy is that you designed on paper ...

Locking in Profit with a Straddle

Sunday, May 4th, 2008

I'll give you a simple example of how you can lock in profit with a straddle. This is based on several trades of mine. Imagine a stock XYZ trading currently at $12 a share. You know the company and the market niche very well as you conduct regularly research and ...