Market Analysis - 2/25/2024

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3/10/2024 - Weekly Recap + Market Predictions

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Hi Readers, I hope you are doing well! In this post, I will be covering what my account has been looking like over the past week. Since my positions did not change much over this past week, I will also include the market predictions for the next week in this post as well. I hope you enjoy! WEEKLY RECAP: Monday and Tuesday: I did not trade or make any adjustments on my account Wednesday: I entered a Long QQQ ATM Straddle 10 times in the April 5 expiration date. At the time of purchasing the spread, QQ was near $441, so I purchased the straddle at a $441 strike price. On Wednesday, QQQ was at its high for the day when I purchased the straddles, and for the rest of the day (after I purchased the straddles), QQQ proceeded to go down all the way to around $438, where it ended the day. So, the puts were most likely in the money then. Thursday: I did not trade or make any adjustments on my account. However, on this day, QQQ made a huge spike up, and ended the day at around $446.  Friday: ...
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Strategy Post - 3/18/2024 - The Greeks of Options: What are they? (1/5 in the Greeks Series)

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Hi readers, I hope you are all doing well! In this post, I will be giving you a small piece of exposure to the Greeks of options. Understanding what the Greeks are will definitely help an options trader make great adjustments to positions, and understanding how the Greeks work together will result in an options trader being very fundamentally sound and very profitable. This is the first post in a 5-post series, where each post will cover one of the 5 Greeks of Options. Today's post will cover what Delta is, I hope you enjoy! First, here is some background on what Greeks are in Options trading. Greeks are simply types of risk measures that options have. Greeks also measure changes in options price, time value, volatility, and more in result of any change in the underlying stock.  The Greek we will cover today is called Delta. What is Delta? Delta measures how much the price of an option will change due to a $1 change in the underlying stock. The deltas for long call options and shor...
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  Hi readers! This is just an update on the QQQ straddle from the last post.  In the last post, I mentioned that I was going to short some calls to offset some losses on the spread at that time. Fortunately, the price of QQQ actually moved from last post. Last post, it was at around 382, and right now it is at around 372, which shows a huge jump to the downside. This is why I haven't made any adjustments to the spread, as the stock is showing some movement. I am not planning on making any adjustments right now, as if the stock continues to go down, then the straddle will eventually make money. To the downside, the breakeven point is 367.7, so QQQ has to go down just another 5$ for the straddle to break even.  However, if QQQ starts to go up again, or stops moving for a while, I will have to make some adjustments to the position. I know I said that I will short some calls, but I am actually planning to short some puts instead to add positive theta to my position. It will a...
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