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Max pain options: Does the price really pin at expiry? I tested it
Max pain is the strike price where option holders would collect the least at expiry, and the theory says the stock gets pulled toward it before…
Tag: SPY
11 posts tagged SPY, newest first.
11 posts · page 1 of 2
Blog
Iron condor: What 38 years of S&P 500 data say about it
An iron condor is four options with the same expiry: you sell an out-of-the-money put and an out-of-the-money call, and buy a put and a call further…
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Poor man’s covered call: Testing the rules on real SPY quotes
A poor man’s covered call is a covered call where a long-dated, deep in-the-money call option stands in for the 100 shares. You buy that call, sell a…
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What is VWAP in trading? A test on 3 years of SPY data
VWAP, the volume-weighted average price, is the average price of the day weighted by how many shares traded at each price. It starts fresh at the…
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Stop loss trading: Where to put the stop and how much to buy
A stop loss in trading is the price where you admit the trade idea was wrong and get out. Put it where the chart says the idea is broken – below the…
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Only 4% of the stocks matter and what I do about it
When you look at the stock market, it might seem like every stock has a chance to make you rich if you just hold on long enough. But research tells a…