The strategy commonly referred to as “buy the dip” is where an investor buys (or goes long) an underlying asset that has dropped in price but is expected to rebound and continue on its longer uptrend. Contents Step 1: What Is The PSAR Indicator? Step 2: Sell The Rally Final Thoughts Step 1: In order ..read more

As a review, an iron condor is an out-of-the-money put spread plus an out-of-the-money call spread. Contents Iron Condor Adjustment: Rolling Tested Spread Away Iron Condor Adjustment: Rolling Un-tested Spread In Iron Condor Adjustment: Delta Hedge Iron Condor Adjustment: Rolling Out InTime Summary Here is a typical iron condor on the RUT index with the ..read more

Options trading is inherently probabilistic, where traders aim to profit by balancing risk and reward. High probability trading refers to strategies designed to deliver consistent profits by leveraging statistical probabilities and favorable setups. These strategies focus on generating income or capitalizing on small market inefficiencies rather than chasing large, speculative payouts. Let’s explore the principles ..read more

When selling out-of-the-money put credit spreads for premium, one of the most important questions to ask is what delta to sell them at. Contents What Delta Is This Put Spread? The Conservative Zone The Balanced Approach The Aggressive Play Conclusion As a review, here is a put credit spread on Microsoft (MSFT), currently trading at ..read more

While Peter Lynch did not coin nor specifically use this metric for evaluating the value of a company, it got this name because others have created this quantitative measure based on his investment principles. Peter Lynch is a well-known successful investor and the former manager of the Fidelity Magellan Fund. His investment principles are to ..read more

Contents Introduction: The Foundation Of A Diversified Portfolio Why Asset Allocation Matters The Main Asset Classes: Stocks, Bonds, And Cash Factors Influencing Asset Allocation Strategic Vs. Tactical Asset Allocation The Role Of Rebalancing The Importance Of Diversification Within Asset Classes Asset Allocation Models: Conservative, Balanced, And Aggressive Conclusion: The Ongoing Process Of Asset Allocation Introduction ..read more

NYSE margin debt shows how much money investors have borrowed from brokers to buy stocks. When margin debt reaches higher levels, it can signal excessive market optimism and potential vulnerability to any kind of pullback. Two notable instances are the major market downturns in 2000 and 2008. If you decide to trade on margin, you’ll ..read more

I know you have heard about risk management so many times before. So today, we will talk about a concept in risk management that I don’t see mentioned much on the internet. Do you know your personal P&L distribution curve? Your P&L (profit and loss) distribution curve must be of a certain shape to be ..read more

Introduction: The Role Of U.S. Treasury Securities In A Portfolio For those navigating the markets, U.S. Treasury securities offer a unique component within a diversified portfolio. Issued by the U.S. Department of the Treasury, these debt instruments—Treasury bills (T-bills), Treasury notes (T-notes), Treasury bonds (T-bonds), and Treasury Inflation-Protected Securities (TIPS)—are renowned for their safety and ..read more

After learning how to set up an iron condor options strategy, learning to adjust an iron condor is the next step. We will explain all this via one long example covering multiple adjustment techniques. The key is to understand the fundamental concepts that underlie all of the adjustment techniques. These techniques are categorized as either ..read more