04th November 2009
The Butterfly is an option position that is composed of 2 vertical spreads that have a common strike price. In other words, butterfly trading involves an opening position where options (either calls or puts) are bought (or sold) at 3 different strike pric...
15th October 2009
Backspreads, also known as reverse ratio spreads, are an option strategy utilized when you believe there will be much volatility in the stock but are not 100% sure whether it will go up or down. If the stock moves a lot in the predicted direction, you wil...
06th October 2009
A synthetic trade involves buying a call and selling a put with the same strike price and expiration date or vice versa depending on your outlook for the stock. A Long Synthetic is the name for the bullish trade option, where a call is bought and a put is...
13th September 2009
Writing Covered Calls are a "moderate" investor's favourite strategy. It works particularly well when the stock in question doesn't move dramatically up or down, but rather just trends sideways. Basically, it works for stocks that are deemed too "boring" ...
13th September 2009
The Average Directional Index, or the ADX indicator for short, acts as a guide to confirm the signals produced by other technical indicators. The Average Directional Index is an indicator that measures the strength of a trend. For example, it can measure ...
03rd March 2009
A business plan is a summary and appraisal of your business concept. It is the written result of the planning process.
A business plan shows the likelihood of success of the business and your ability to make it work. It affords the means to work throug...
03rd March 2009
What are Commodities?
Commodities are goods that are in broad demand and are pretty constant and do not differ much in terms of quality. For example, gold is gold whether it's mined in Africa or Australia.
Because of this standard in quality, these ...
