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learn the options greek first, then watch how it works
two most important options greek are theta and delta
theta as explained
delta is the amount of contract price increase or decrease as the stock price increase or decrease by $1.
so that means delta will get bigger when the stock price increases more and more, but delta will get smaller when the stock price decreases more and more
my other advise to you is treat the market as like your girlfriend. your girlfriend is moody, right? market is the same, moody.
figuring out what's the market mood is the same as figuring out your girlfriend mood
right now i think the market mood is consolidating. after 2 weeks of bull run, market is consolidating before getting a new high, consolidation can takes days or weeks.
consolidation means the channel range is tight, probably in 1% or less, that means sell when the stock price hits 1% higher than the lower range of the channel.
how do you determine the market mood? watch nasdaq QQQ and S&P500 SPY. watch their price action.
also watch VIX - market volatility index - investor fear gauge. the lower the value, the more confident, the higher the value, the more scared the investors are, that means you want VIX to be as low as possible. VIX below 20 is good, VIX over 30 is bad, just see last month, VIX almost over 30
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