Market Analysis - 2/25/2024

-

 tbf

Popular posts from this blog

3/10/2024 - Weekly Recap + Market Predictions

-
Image
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: ...
Read more

Strategy Post - 3/18/2024 - The Greeks of Options: What are they? (1/5 in the Greeks Series)

-
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...
Read more
-
Image
 Hi readers! Today I will be talking about a spread that I made on my trading account.  Here is a photo of my account right now: I did roll over my previous options, since they were not profitable. I made a long QQQ straddle at strike price 382.5 last week, and to make money on this trade, the stock QQQ has to either go down in value enough to cover the premium of the spread, or up in value enough in value to cover the premium of the spread. I paid about $14.80 for each spread, and I bought 10 of them, so in total it cost $14,880. The breakeven points for this spread would be $397.3 to the upside and 367.7 to the downside. The breakeven points are a bit wide because the spread cost relatively more than other straddles.  Currently, QQQ is trading at 382.79, and that is a good sign, since I bought the straddle ATM, meaning QQQ was at 382.5 last week. This spread expires at August 25, so QQQ has to make a bigger move before then. I am thinking of buying or selling another op...
Read more