by Henry Liverman | Jun 1, 2021 | Market Definitions
A statistical measurement of the dispersion of returns for a given security or market index. In general terms, the higher the volatility, the riskier the security. Within securities markets, volatility is often associated with big swings in either direction. For...
by Henry Liverman | Jun 1, 2021 | Market Definitions
A part of a group of measurements known as the “Greeks” which are used in options pricing. Vega is the Greek that measures an option’s sensitivity to implied volatility. It is the change in an option’s price for a one-point change in implied...
by Henry Liverman | Jun 1, 2021 | Market Definitions
A bullish pattern created by a sharp V-shaped trough. The trough is created by investor irrationality causing a sudden price fall and a subsequent reversal of the short-term bearish movement. Thus, a V Bottom often occurs in a bearish trend and announces a trend...
by Henry Liverman | May 31, 2021 | Market Definitions
A strategy for investment that involves choosing stocks that appear to be under or overvalued relative to their intrinsic or book value. Value investors believe that the market reacts disproportionately strongly to good or bad news, which results in price movements...
by Henry Liverman | May 31, 2021 | Market Definitions
A part of a group of measurements known as the “Greeks” which are used in options pricing. Also called the time decay of an option, theta is a measurement used to show the decline in value of an option due to the passage of time. This means an option...
by Henry Liverman | May 31, 2021 | Market Definitions
An strategy for options trading designed to imitate a short stock position. A synthetic short is created by selling at-the-money calls and buying an equal number of at-the-money outs of the same underlying stock with the same expiration date. A synthetic short...
