Billy Williams
Main Advantage of Option Trading
I provided some basics on option spread trading in one of my previous articles and also in my ‘11 Things You Can Do with Option Spread Trading’ piece. Alternatively, you might already know at least something about option trading. However, even those who have traded options will benefit from reviewing some of the basics before […]
11 Amazing Things You Can Do with Option Spread Trading
A few years ago, investors in the U.S. flocked to gold and silver. At the same time, Federal Reserve printed money around the clock, destroying the value of the dollar in the process. Anxiety increased among investors — especially those approaching retirement age. The Fed monetized our debt by printing more money to service the […]
Option Spread Trading is Not for Everyone
More than twenty years ago when I was starting out as a trader, Futures Magazine ran an article that stated, “Pure directional option traders have great war stories about how they made a killing in the market but spread traders drive nicer cars.” While option spread trading can be very profitable, it is not for […]
How to Determine Intrinsic Stock Value
Short-term stock prices merely reflect the prevailing trading on major secondary exchanges — not the intrinsic stock value These stock prices merely reflect the supply and demand for company shares. Any change in these variables will cause price adjustments in order to clear the market until it achieves an equal number of buyers and sellers. […]
5 Fundamental Reasons Stock Prices Might Not Be Totally Random
Fundamental and value investors use corporate earnings analysis as one of the driving factors to select investment with the highest potential. However, another class of investors is not particularly concerned with either intrinsic value or earnings, but instead is focused purely on the stock price and which direction it is heading. Momentum-driven investors frequently are […]
3 Techniques Wall Street Analysts Use to Predict Corporate Earnings
The Efficient Market Hypothesis predicts that news events drive stock prices. In other words, stock prices nearly instantaneously react to new information entering the market. Some of the biggest news events that drive the prices of individual stocks are earnings announcements. In the United States, companies announce their financial results every three months. Prior to […]