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As with investors and stocks, a market can also be bullish or bearish. A bull market is generally defined as a period of consistent, overall upticks in the market, whereas a bear market is defined ...
Guts - buy (long gut) or sell (short gut) a pair of ITM (in the money) put and call (compared to a strangle where OTM puts and calls are traded). Butterfly - a neutral option strategy combining bull and bear spreads. Long butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of ...
A large difference between the percentage bullish vs. bearish indicates more risk. The 30% difference is increased risk. At 40% difference consider defensive measures. [3] [4] On January 16, 2018, Peter Boockvar said that the Investors Intelligence had the highest bull bear spread since 1986. Boockvar said that there was an extraordinary level ...
Very bearish sentiment is usually followed by the market going up more than normal, and vice versa. [3] A bull market refers to a sustained period of either realized or expected price rises, [4] whereas a bear market is used to describe when an index or stock has fallen 20% or more from a recent high for a sustained length of time. [5]
COST data by YCharts. 3. Value stocks increase in popularity. Many stocks now trade at premium prices thanks to the huge gains of the last couple of years. Sooner or later, though, investors will ...
"Everyone hates stocks and loves bonds," one analyst said. Essentially, this is a classic "it's so bullish it's bearish" argument.
Call option – the right to buy an asset at a fixed date and price. Put option – the right to sell an asset at a fixed date and price. Foreign exchange option – the right to sell money in one currency and buy money in another currency at a fixed date and rate. Strike price – the asset price at which the investor can exercise an option.
If the trader is bullish, you set up a bullish credit spread using puts. Look at the following example. Trader Joe expects XYZ to rally sharply from its current price of $20 a share. Write 10 January 19 puts at $0.75 $750 Buy 10 January 18 puts at $.40 ($400) net credit $350 Consider the following scenarios: