Relationship between OPTIONS GREEK with DEGREE of MONEYNESS, IMPLIED VOLATILITY and TIME TO EXPIRATION: Summary � Part 1

Option Greeks have been one of the main topics that I have previously shared in details in this blog.I�ve tried to explain each of option greek in a simple way for easy but yet deep understanding. It�s really not easy doing this, but I was very encouraged by many compliments and positive feedback from my readers. I'm happy that many people in fact have benefited from these Option Greeks articles. I'd really like to thank my readers for their continuous support. :)Here I tried to summarize the main understanding of Options Greeks:DELTADelta is an option greek that measures of the change in the option price due to a change in the underlying stock price.Delta of ATM, ITM & OTM OptionsThe delta values for long position will be positive for Calls (0 to 1) & negative for Puts (0 to -1).At-the-money...

Read more »

TRIPLE BOTTOM PATTERN � Part 2: Important Characteristics

Re-visit Part 1: Triple Bottom FormationImportant Characteristics of Triple Bottom PatternExisting Trend:There should be an established existing DOWNWARD trend prior to the pattern.Shape of Triple Bottom Pattern:1) The Three Bottoms:The bottoms should be sharp and distinct / well separated. The price bottoms do not have to be exactly the same, but it should appear reasonably equivalent to each other.If the last bottom (3rd bottom) is higher than the middle bottom (2nd bottom), there is a relatively higher chance of stronger price increase. A higher bottom in the last bottom might indicate weaker selling pressures, as the sellers attempt to push the price down to the previous low or make a new low but fail, suggesting that the selling pressures might have started to subside.2) The Two Peaks:The...

Read more »

Market Analysis Video: Has the S&P Index Broken Final Support?

In the previous video on the S&P 500 last week, it was indicated that this market may have topped out for the year.As a follow up, this latest video shares some ideas that could potentially come into play for this market, such as potential downside targets and pattern that may evolve in the next several weeks.Hope you can benefit from this. :)Related Topics:* Free Trading Educational Video: Learn Technical Tips from Dan Gramza* Learning Candlestick Charts* Learning Charts Patterns* Understanding Implied Volatility (IV)* Understanding Option Greeks* Understanding Option�s Time ValueAnalysis Tool:Get Free Trend Analysis for your favorite symb...

Read more »