Blog Posts

Dividend futures are financial derivatives that allow traders to speculate on or hedge against future dividend payments of a specific stock or index. These instruments have gained popularity as a way to speculate on future dividend stream trajectories without the need to own the underlying securities.   Key Takeaways – Dividend Futures Pure dividend exposure […]

Traders are constantly seeking innovative ways to gain an edge. Creative trading strategies go beyond conventional methods, leveraging unique analysis methods, technological advancements, and unconventional data sources to obtain information and identify cause-effect linkages. Here we look at various creative approaches to trading that can potentially improve returns and manage risk more effectively.   Key […]

Income trading is a popular strategy that focuses on generating regular cash flow from various financial instruments in a portfolio. This approach is attractive to those who seek steady returns and are less concerned with capital appreciation. Income trading strategies can be applied across different asset classes, including stocks, bonds, options, and alternative assets like […]

Day trading requires a basic foundation in mathematics to make informed decisions and manage risk effectively.  This guide will cover the essential mathematical knowledge and skills needed to succeed in day trading.   Key Takeaways – Math You Need to Know in Day Trading Expected value (EV) is an essential mathematical skill. A high probability […]

Spread trading in options is an approach to trading that involves simultaneously buying and selling multiple options contracts. These strategies are designed to help traders manage risk, capitalize on specific market conditions, and potentially profit from various scenarios while often limiting potential losses.   Key Takeaways – Spread Option Trading Strategies Risk-Reward Balance – Spreads […]

In the context of financial derivatives, Greeks are essential risk measures that help traders and analysts understand how various factors affect the value of an option or other derivative instrument. While single-asset Greeks are well-known and widely used, multi-asset Greeks are used when dealing with derivatives that depend on two or more underlying assets. Multi-asset […]

Fugit is a concept in options trading and risk management, particularly for American and Bermudan options. It provides information on the timing of option exercise and helps in hedging strategies. It’s considered a less traditional Greek.   Key Takeaways – Fugit (Option Greek) Fugit estimates the expected time to exercise for American and Bermudan options, […]

The elasticity of demand refers to the degree of responsiveness of the demand for a product or service to changes in its price. A good is considered to be elastic if an increase in its price results in a significant decrease in the quantity demanded, and vice versa. It is also referred to as “price […]

Ultima is a third-order derivative of the option value with respect to volatility. In other words, it’s an advanced option Greek that measures the sensitivity of an option’s Vomma (second-order sensitivity) to changes in volatility. This makes it one of the more complex Greeks used in options trading and risk management.   Key Takeaways – […]

Color, also known as gamma decay or DgammaDtime, is a concept in options trading, market making, and risk management.  It’s a third-order Greek measure that helps traders understand how the rate of change of an option’s Gamma varies over time.   Key Takeaways – Color (Option Greek) Color predicts daily Gamma changes, helping traders anticipate […]