How to Use Critical or Pivotal Prices

SPY ETF 30-Min Candle

Critical or pivotal prices are used in various ways. Some traders use them to identify support and resistance areas, entry and exit zones. They may also be used to define momentum. There are more than a few ways to determine daily pivot points. The most popular requires some basic math using the high, low and […]

What Do You Know About Option Theta?

Option Theta

What do you know about option theta? For many, it can be the easiest option greek to understand, but for many others it is the most difficult. Let’s take a quick look below and, let’s hope, clear up some confusion. Theta Definition Theta measures the rate of decline in the value of an option due […]

Are You Only Thinking About Bullish Option Trades?

moves

Let’s play trading psychologist and patient. If you have not figured it out by now, trading is psychological warfare for a human. Psychology is a huge part of trading. Without overcoming your emotional fears and being disciplined, you have little chance of being successful at trading options. So, when the market is moving lower, as […]

Rho: It’s Back!

Option Rho

I haven’t had to think about this one for a while. But after 14 years, it’s back in play: the option Greek rho. The Option Greek Rho Let’s just dig right in, shall we? Rho is the option Greek that measures an option position’s sensitivity to a change in interest rates. It works like some […]