Intrinsic Value
Intrinsic value is also used in options pricing to determine how in-the-money an option is or how much profit currently exists. For review, an options contract grants the buyer the right, but not the commitment, to buy or sell the underlying security at a preset price called the strike price. Options have expiration dates at […]
Trend Indicators
The core concept of technical analysis is to trade with the trend. If your trend indicators tell you the security is trending upward, buy it. When it stops trending upward, sell it. If you don’t know what’s going on, don’t trade. Don’t fall into the value trap — that a high-quality security will come back […]