What Is a Bear Call Spread? | Definition and Examples
[ez-toc] In options trading, a bear call spread is a strategic approach used when you expect a slight decline in the price of an underlying asset. A bear spread involves a nuanced combination of selling and buying call options. It’s a popular technique among traders aiming to benefit from modest market downturns while managing risks […]
Quantitative Investment Strategies: A Guide To Getting Started
[ez-toc] Quantitative investment strategies, or ‘quant trading’, involve a sophisticated mix of technology and economic theory. Characterized by incredible speed and constant objectivity, quantitative investment strategies employ intelligent statistical analysis, complex financial models, and various forms of data analytics to predict market movements, place trades, and manage existing open positions. Originating from the pioneering work […]
Credit Spread Options: What They Are and How They Work
[ez-toc] Credit spreads are an integral part of options trading, allowing traders to receive credit at the outset and capitalize on market movements with a defined risk-reward framework. This method involves the simultaneous buying and selling of options contracts related to the same underlying security but with different strike prices, creating a spread. The strategy’s […]
8 Best Indicators for Swing Trading in 2024
[ez-toc] Swing trading can be a great way to use short-term market movements to generate profits. Despite its growing popularity, however, this form of trading is not for everyone. If you’re wondering whether swing trading is the best strategy for you, it’s important to know that this style of trading depends on timing your trades […]
Profitability vs Profit: Understanding the Differences
[ez-toc] When it comes to your company’s financial health, understanding the difference between profitability vs. profit is critical. Generally, economic profit is measured periodically on your business income and cash flow statements, while investors and analysts use ratios to evaluate your company’s profitability. Calculating profit and profitability can help you identify areas in your business […]