In a bear market, the lows of the first market downturn are often retested following a rally like the one we have just seen. This article examines how put options can be used to maximize the return on a bearish projection. As can be seen in the following chart, the unit price of the iShares S&P/TSX Capped Financials Index...
Professional options traders are really good at dividing and multiplying by 16. That seems like a weird skill, but it is a crucially important one for anyone who wants to fully understand the terminology used in options markets. No matter how you utilize options, the “Rule of 16” is critical for analyzing volatility,...
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