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...
by Henry Liverman | May 31, 2021 | Market Definitions
An options strategy involving holding both a call and a put option with the same expiration date of the same underlying asset (similar to a straddle) but with different strike prices (differentiating it from a straddle). This is a good strategy if the trader thinks...
