Introduction to Theta in Options Trading Theta, commonly referred to in the world of finance as the time decay of an option, represents the rate at which an option loses value as time passes, assuming all other factors remain constant. As one of the Greek letters used in the financial sector, Theta plays an instrumental
Welcome to part 2 of our examination of Trading Psychology! Part one discusses “the big four”: Fear, Hope, Greed, and Regret and how they can affect your trading. It also discusses the basics of what trading psychology, and psychology, is. If you are brand new to this subject, begin with that article. Also be aware
TRADING PSYCHOLOGY – PART 1If you have been trading for any amount of time at all, it is certain you have at least heard of the term Trading Psychology. Even more, you have likely heard of its importance. We at BlackBoxStocks are in full agreement that this psychological element is one of the toughest aspects
Volatility is often synonymous with risk for many traders, but when properly harnessed, it can lead to profitable opportunities. One such opportunity presents itself during the earnings season where the focus shifts from market direction to market volatility. Let’s dive deeper into a popular volatility-focused trading strategy: the Options Straddle Strategy. Exploring Volatility-Based Trading Strategies
BlackBoxStocks presents the most robust market scanners in the trading sphere, designed to help the retail trader. These tools, which include premarket, market, and post-market stock scanners, provide the critical data you need to formulate informed trading hypotheses. This article will highlight how these scanners can boost both your intraday trades and your long-term investment
Selling naked options – either calls or puts – is an essential aspect of trading that most investors may find intimidating due to the perceived risk involved. While the level of risk can indeed be high, understanding the fundamentals and implementing the right strategies can enable traders to navigate this field confidently. This article aims
One exciting feature that sets the BlackBoxStocks community apart is a weekly trading event our moderators fondly term “500% Fridays.” This event embodies the thrill of trading, yet underscores the importance of strategic and responsible trading decisions. While not a recommended regular trading strategy, 500% Fridays introduce traders to the dynamic world of cobras. What
In the world of options trading, understanding different trading strategies is crucial for success. Two popular strategies are straddles and strangles. Both straddles and strangles allow traders to profit from significant moves in a stock’s price, regardless of the direction. However, each has its unique characteristics. In this post, we’ll delve deeper into a comparison
A deep understanding of support and resistance (S/R) is the keystone of profitable trading. Understanding what S/R is, how to map it accurately, and its correlation with volume, is vital. Delving into S/R, we explore its intricacies, applications across different trading time frames, and its influential role in trading decisions. DEMYSTIFYING SUPPORT AND RESISTANCE Support
In the world of options trading, various strategies can be deployed depending on one’s market perspective and risk tolerance. Two cousin strategies that often get mentioned together are the Straddle and the Strangle. This piece will delve into the specifics of the Strangle strategy, dissecting its mechanics, potential profits and losses, and the conditions under
