Blog #trading

Bear Call Spread

Bear Call Spread. An alternative name is Credit Call Spread. Bearish position. It is a vertical spread involving an equal number of long and short calls on the same underlying asset and with the same expiration date. It is a credit spread, which means you receive money to put on the position. The strategy profits as long as the price of the underlying security remains below the breakeven point.

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Straddle

Straddle. An alternative name is Long Straddle. Neutral position. It is a combination involving an equal number of long puts and long calls at the same strike price and the same expiration date. It is a debit combination, which means you must pay to put on the position. Buy to open one at-the-money (ATM) call and simultaneously buy to open one ATM put.

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Weekend readings, 2016/12/30

Paul Krugman: And the Trade War Came "Corporate America is still in denial about the prospects for a global trade war, even though protectionism was a central theme of the Trump campaign.

Trading like this can be fatal for you, Part 1

I was 24 years old and it was July 2007. I was sitting on the fixed income trading floor of BNP Paribas at the time and was just itching to take a big short on the stock market. Equities had been rallying in the face of a crashing fixed income market.

Trading like this can be fatal for you, Part 2

In the first part of this article, I briefly discussed a rather painful early trading experience during the financial crises in 2007/2008. I was short and still somehow killed my account.