Stock Market Quant Trading and Investing

An option contract is a form of financial asset called a derivative. The purchase of an option contract allows you to buy or sell certain underlying assets under specific conditions. You choose a price and a date on which to exchange this asset. When the time comes, you can choose to execute the contract if it's profitable, or let it expire if you don't. Here's what you need to know about option contracts. What are the options? While traders can base an option contract on virtually any tradable asset, the most common come in two forms:     Commodity option, trading in tangible assets and raw materials;     Stock options, commercial actions of a company. In an option contract, you have the right to buy or sell an underlying asset at a specific price and date. On the expiration date, your earnings, if any, come from the difference between the current market price of the asset and the price of your contract. This is why option contracts are called der...

There was once a time when the only people who were able to trade actively in the stock market were those working for large financial institutions, brokerages, and trading houses. But, with the rise of the internet and online trading houses, brokers have made it easier for the average individual investor to get in on the game. Day trading can turn out to be a very lucrative career, as long as you do it properly. But it can also be a little challenging for novices—especially for those who aren't fully prepared with a well-planned strategy. Even the most seasoned day traders can hit rough patches and experience losses. So, what exactly is day trading and how does it work? Day trading is defined as the purchase and sale of a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets. Day traders are typically well-educated and well-funded. They use high amounts of leverage and short-ter...

The fallout from the coronavirus has been rapid. The last few weeks have seen huge levels of volatility and the S&P 500 has dropped around 29% from it’s February peak. If you have read any of my previous updates you will know that I have been waiting for an opportunity like this for some time. However, I have not traded this crisis particularly well. I put a bit of money to work on the first dip around $2900 and then again around $2500 – too early on both counts. Not being an expert in viruses or epidemics, I cannot make any claims about the virus itself and my focus in this post is the reaction of major stock markets. A good explanation I’ve found on epidemics and exponential growth is this one on YouTube which I recommend watching if you are not already up to speed. My Take Looking at the situation now it appears that the market has scope to fall further as the economic fallout continues and the virus spreads. The next major level of support would be the $20...

Spy Index Yesterday the marketplace had its largest single day drop since 1987. The Coronavirus is spreading globally and also the United States is de-activate. On a macro basis, international travel has been frozen. On a micro basis, restaurants, bars and schools are already closed. Gatherings in excess of 10 everyone is discouraged by the CDC. People are stockpiling food plus they are practicing social distancing. Global economies have learned to a screeching halt and central banks are flooding the economic climate with liquidity. The next few weeks will be critical. Scientists think that the spread from the virus has to be contained immediately. If we can flatten the development curve with the virus we are going to buy some time. Biotech companies are scrambling to develop a vaccine and also the first dose from Moderna (MRNA) was delivered yesterday. We still do not know if it is effective or if they have unwanted side effects. I read that hydroxychloroquine has become just righ...

Introducing Ken Trester's book-101 Option Trading Secrets Author of the best-selling Complete Option Player, now in its 4th edition, Ken Trester is acclaimed for rendering complex subjects into easy-to-understand concepts and ideas. Through his books, seminars, and as a college professor, Ken Trester has educated tens of thousands of investors about the power and benefits of options. His award-winning programs give ordinary investors an edge in the professional arena. In this 336 page book, Ken condenses his options expertise and 30 years of extensive trading experience into 101 concise secrets that can help any investor to maximize their gains. its fourth edition, is among the best selling options books ever. Buy 101 Option Trading Secrets A former computer science professor Ken has taught many popular course on options trading. In addition, he teaches a limited number of individuals through intensive options seminars. Many former students have been very successful usin...