Publicly traded options contracts with expiration dates that are longer than one year. Long-term Equity AnticiPation Securities (LEAPS) are long-term option contracts that allow investors to establish positions that can be maintained for a period of up to three years. CBOE lists LEAPS on Equity and Index products. Please visit the CBOE Symbol Directory for a listing of all CBOE … [Read more...]
Market versus Quote – MVQ: Definition
Market versus Quote - MVQ A comparison between the last price at which a security traded and the current bid/ask prices. Usually the best bid and ask prices will be close the market price, but occasionally the market price can differ significantly from the bid/ask, especially for an illiquid security. … [Read more...]
What is Dash to Trash ?
Dash to Trash refers to a situation when the investors trading in the market flock to a class of securities or other assets, bidding up prices to beyond what can be justified by valuation or other fundamental measures. While it is known that the dash-to-trash effect can occur within any type of security, the phrase is typically used to describe the low-quality stocks and … [Read more...]
Yield Tilt Index Fund
An alternative to a pure index fund, a yield tilt fund diversifies its holdings among a universe of stocks that is "tilted" in the direction of higher yield, such as the high-yield stocks that comprise the S&P 500. Yield tilt funds are based on the assertion that, since dividend income is taxed at higher rates, the market must compensate for this taxation by providing … [Read more...]
Countertrend Strategy
This strategy essentially puts you on the same side as inter-bank players with access to order flow. The strategy has an even higher probability of success when other important support or resistance levels, such as Simple Moving Averages, Fibonacci levels or Bollingers, converge at the figure.The transparency and round-the-clock trading characteristic of the currency market … [Read more...]