Trading Videos posts page 82

Tuesday, March 1, 2022

How to Read Option Volatility Charts

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Dan Passarelli, CEO - Market Taker Mentoring

I'm often asked how to read option volatility charts. And it's as simple as 1, 2, 3!

There are 3 steps to reading volatility charts for options traders. First, observe if today's implied volatility is above or below today's historical volatility. Next we observe if today's implied volatility is in the top or bottom half of the 6-month range. Then finally, we forecast what volatility is likely to do in the future, by looking at expected volatility events, like earnings, Fed announcements (FOMC meetings) or the release of the unemployment situation on the first Friday of the month.

This video explains how this affects options valuation.

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Thursday, February 24, 2022

Big Range in the US Stock Market Today

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Dan Passarelli, CEO - Market Taker Mentoring 

There was a big range in the US stock market today as traders reassessed their forecasts of the effect of the Russian Invasion of Ukraine.

When wars occur, it changes the dynamic of how companies do business with one another. Some companies will sell more of their products or services some will sell less. Some will be restricted in what they can sell as a result of sanctions. Other companies will step in to fill the void.

When it comes to the stock market and the effects of war on it, traders must look at companies on an individual basis and asses the change in their business model. This can sometimes create opportunities, or require companies to pivot.

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Thursday, February 17, 2022

Is This Another Short Squeeze in Rocket Companies (RKT)?

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Dan Passarelli, CEO - Market Taker Mentoring 

This is a stock I've watched for about a year now. And today, it is showing some very bullish signals. Is this another short squeeze in Rocket Companies (RKT)? I think it could be.

When we see heavy call buying in a stock that has high short interest as the stock is rising, it sometimes takes off higher in a short squeeze. Particularly when we see volume trading on the offer and volume is higher than open interest. Especially if the stock is up at least 2 percent.

So RKT has all the signs of a potentially explosive move higher. This video explains my rationale and what may happen next.
 

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Tuesday, February 8, 2022

The VIX and Market Volatility

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Dan Passarelli, CEO - Market Taker Mentoring 

The market has been volatile over the past few weeks, but it seems like volatility could be subsiding. There are a few market indicators and market studies we can look at to help understand what may come next. But the VIX and market volatility go hand in hand. That is one of our key stock market observations.

The CBOE Volatility Index, or VIX is often called the market fear gauge. It measures option traders' perception of future market risk and can provide valuable insights. Watch this video with Market Taker Mentoring's Dan Passarelli as he shares his insight on how market volatility is likely to play out over the rest of the first half of 2022.

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Thursday, February 3, 2022

Big Moves in FB and AMZN: What's Next?

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Dan Passarelli, CEO - Market Taker Mentoring

There were big moves in FB and AMZN: What's Next? Well, even though it's common for tech stocks to move together somewhat, this is a case where each company sort of stands on its own merit.

Facebook (FB) was down about 25% because its (bad) earnings and future (worse) guidance. That dragged other tech stocks like Amazon.com (AMZN) down with it. But when AMZN's earnings were released after the close today, the stock shot back up huge.

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Thursday, January 27, 2022

What Is Option Vega?

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Dan Passarelli, CEO - Market Taker Mentoring 


What is option vega? In option trading, there are metrics called the option greeks and vega is one of them along with delta, gamma, theta and rho.

Vega specifically measures how option value changes relative to changes in the option implied volatility. Implied volatility is a measure of the buying and selling pressure on an option as traders make decisions based on their volatility assumptions for the future price of the stock.

In this video, you'll see an example how how implied volatility affects the option price though use of vega within the option chain.

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