Month: November 2020

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Trading Ideas

Try This Simple Trick in a Market Crash to Boost Your Profits

November 25, 2020 admin Comments Off on Try This Simple Trick in a Market Crash to Boost Your Profits

Stock market sell-offs hurt.
These days they are swift and painful. But they don’t need to be.
We’ll let somebody else spew the same old tripe that sell-offs are buying opportunities. You already know that.
It’s been made quite clear in recent years that buying on dips is an easy way to boost your profits.
What few folks will tell you, though, is exactly when to buy.
How in the world do we know when we’ve reached a bottom?
How do we know when the rush of selling has stopped and buyers are back?
We don’t, of course. Nobody knows. But there’s a trick you can use …read more […]

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Trading Ideas

The Black Scholes Model: An Options Pricing Formula

November 25, 2020 admin Comments Off on The Black Scholes Model: An Options Pricing Formula

The Black Scholes Model is a mathematical options pricing model used to determine the prices of call and put options. The standard formula is only for European Options, but it can be adjusted to value American Options as well.
This mathematical formula is also known as the Black-Scholes-Merton (BSM) Model, and it won the prestigious Nobel Prize in economics for its groundbreaking work in pricing options.
In this article, we will look at the basics of the formula to gain a better understanding of what it is and how it works. By the end of this article, you should have a foundation …read more […]