What can a trader learn from Alice in Wonderland?

A trader can learn things from an  unexpected source.. Here is some trading wisdom from Alice in Wonderland..

'The rule is, jam tomorrow and jam yesterday--but never jam to-day.'
'It MUST come sometimes to "jam to-day,"' Alice objected.
'No, it can't,' said the Queen. 'It's jam every OTHER day: to-day isn't any OTHER day, you know.'
'I don't understand you,' said Alice. 'It's dreadfully confusing!'
'That's the effect of living backwards,' the Queen said kindly: 'it always makes one a little giddy at first--'
'Living backwards!' Alice repeated in great astonishment. 'I never heard of such a thing!'
'--but there's one great advantage in it, that one's memory works both ways.'
'I'm sure MINE only works one way,' Alice remarked. 'I can't remember things before they happen.'
'It's a poor sort of memory that only works backwards,' the Queen remarked.

How to trade Binary Options

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The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets

 “Jeff’s analysis is unique, at least among academic derivatives textbooks. I would definitely use this material in my derivatives class, as I believe students would benefit from analyzing the many dimensions of Jeff’s trading strategies. I especially found the material on trading the earnings cycle and discussion of how to insure against price jumps at known events very worthwhile.”

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“This is not just another book about options trading. The author shares a plethora of knowledge based on 20 years of trading experience and study of the financial markets. Jeff explains the myriad of complexities about options in a manner that is insightful and easy to understand. Given the growth in the options and derivatives markets over the past five years, this book is required reading for any serious investor or anyone in the financial service industries.”

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“Those in the know will find this book to be an excellent resource and practical guide with exciting new insights into investing and hedging with options.”

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—ARTHUR TISI, Founder and CEO, EXA Infosystems; private investor and options trader

 

In The Volatility Edge in Options Trading, leading options trader Jeff Augen introduces breakthrough strategies for identifying subtle price distortions that arise from changes in market volatility. Drawing on more than a decade of never-before-published research, Augen provides new analytical techniques that every experienced options trader can use to study historical price changes, mitigate risk, limit market exposure, and structure mathematically sound high-return options positions. Augen bridges the gap between pricing theory mathematics and market realities, covering topics addressed in no other options trading book. He introduces new ways to exploit the rising volatility that precedes earnings releases; trade the monthly options expiration cycle; leverage put:call price parity disruptions; understand weekend and month-end effects on bid-ask spreads; and use options on the CBOE Volatility Index (VIX) as a portfolio hedge. Unlike conventional guides, The Volatility Edge in Options Trading doesn’t rely on oversimplified positional analyses: it fully reflects ongoing changes in the prices of underlying securities, market volatility, and time decay. What’s more, Augen shows how to build your own customized analytical toolset using low-cost desktop software and data sources: tools that can transform his state-of-the-art strategies into practical buy/sell guidance.

 

An options investment strategy that reflects the markets’ fundamental mathematical properties

Presents strategies for achieving superior returns in widely diverse market conditions

Adaptive trading: how to dynamically manage option positions, and why you must

Includes precise, proven metrics and rules for adjusting complex positions

Effectively trading the earnings and expiration cycles

Leverage price distortions related to earnings and impending options expirations

Building a state-of-the-art analytical infrastructure

Use standard desktop software and data sources to build world-class decision-making tools

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Trading Independence

Trading Independence - Commodity Trader Commodity Futures Market News Trading Independence By Mathew Bradbard on June 30, 2011 7:06 PM | No Comments | No TrackBacks

June has come and gone ...to all a happy Independence day...see you in July. Crude should finish slightly higher but again today prices were unable to take out the 18 day MA; in August at $96.25. On a trade above that level our next target would be the 40 day MA at $98.80. At this juncture we're assuming an interim bottom was established this week just above $90 in the August contract. As RBOB and heating oil trade higher we feel they could propel Crude back near $100/barrel. Wild trade in natural gas today with a 21 cent trading range... at the end of the day a bullish engulfing candle should mean higher ground. We're thinking another 5% from here and have advised longs in September. In the last two weeks indices have gone from over sold to overbought and at this point we feel the 2% advance in the last four days is too much. We will likely be selling into this strength as we anticipate a return to 1275 in the coming weeks.

The dollar has lost ground the last four sessions and we maintain a trade back under 74.00 in the coming weeks. The commodity currencies remain the standouts and the Loonie is the pick of the litter in my opinion. On their lows August live cattle completed a 38.2% Fibonacci retracement...we expect a trade to the 2o day MA another 2% from current pricing. Lean hogs posted a 2 1/2 week low doing minor chart damage so expect more downside. Bearish engulfing candle in gold with a settlement below $1500/ounce. As long as $1485 holds in August on a settlement basis we suggest remaining in bullish plays. We hold small long overexposure with some clients in silver but we would like to see a settlement above the 9 day MA in the coming sessions to be convinced the downside is behind us. That level is just above $35/ounce in September.

Cocoa advanced to a two month high and has gained nearly 7% this week. We continue to work out of long for clients thinking we're nearing an interim top. It appears we're seeing triple top in the making in sugar as prices broke just over 2% today. Our clients shorts are under water but if you stay the course we should see a significant break in the immediate future. Remember we were at 23 cents just over one month ago and that remains our target in October. Bearish is an understatement in terms of the reaction by grain traders to this morning's USDA report with corn and wheat trading down their respective price limits. We suggest buying corn closer to $6/bushel as prices will likely be limit lower (45 cents) tomorrow. Some clients are long soybean oil and wheat and though painful today we feel will be profitable in the next two/three weeks. The numbers today were bearish corn but my interpretation was neutral to mildly friendly in the other grains and talking to farmers I think the USDA has discounted the less than ideal weather way too much. We advised clients today to offset any short exposure in 30-year bonds and 10-yr notes. If they want to keep exposure in this complex we advised moving to the short end of the curve in December 2012 contracts.

Risk disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results.

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