Arbitrage trades are referred to as near-pure-alpha strategies. This is because the strategy is set up to generate gains regardless of the market direction. Previously in this column, we discussed how to fade rates using Read More
Trading futures is relatively easy compared to options. For one, futures move nearly one-to-one with the underlying. So, all the trading tools used for stocks can be applied on futures prices. For another, the choice Read More
If you want to fade prices, should you choose the stock, its futures contract or trade options? This week, we look at why options are optimal for fading prices. Limited loss Fading prices is risky. Read More
Previously in this column, we discussed the butterfly strategy and its modification- butterfly with broken wings. This week, we revisit two important characteristics of a butterfly- limited risk and arguably, the choice-indifference between call and Read More