Author: frank mercado

Understanding Option Premium

Learning Objective: Learn how to read an Option Contract Understand how Delta, Gamma, Theta, and Vega affect the option premium of Call and Put contracts.   Let’s do a quick review;   What is option premium? ● Option premium is the value of an option. This is the value you pay when buying and the […]

El Tigre Watchlist, Monday May 9th, 2022

$SPX (monthly) Following the breakdown from April, SPX has now trading well below February, March, and April’s low prices. We are also now trading below the middle of the regression channel. This does indicate more lows to come in, potentially looking for $3,812.36 SPX, monthly   $SPX (weekly) Following the double top breakdown around the […]

April 5th Newsletter

What’s happened?   After a turbulent 3 months, the 1st quarter of 2022 is finally behind us. The major U.S indices posted negative results. Dow Jones: -4.5% Nasdaq: -9.08% Russell 2000: -7.8% S&P 500: -4.95% Meanwhile, we are starting to see the first impacts of the geopolitical turmoil and monetary policy changes: The energy sector was the […]

Option premiums

What are options premium? To start with the basic concepts, the premium paid represents the current market price of an option contract. There are two kinds of option contracts, “in the money” and “out of the money”. With in-the-money contracts, the premium is composed of 2 factors; the intrinsic and extrinsic value. Out-of-the-money contracts rely […]

Treasury Bonds

  What are Treasury Bonds?  Treasury bonds (t-bonds) are a form of bond issued by the government. They are debt being sold by the government that pays a small amount of interest over a fixed period of time. These are sold to support government spending and are often seen as a low to risk free […]

Simple Moving Averages

What is a Simple Moving Average (SMA)? When creating trend analysis there are a few different technical markers  available to choose from. Today the focus is on Simple moving averages. SMA’s are calculated based on price averages from a selected time period. For example if you are creating a chart to examine stock price movements, […]

The Federal Funds Rate

With the second FOMC meeting of 2022 in the books. Now is a good time to take a deeper look at what the Federal funds rate is and how it correlates to everyday life. As of March 16th, 2022 the Federal Reserve raised interest rates for the first time since 2018. This move was to […]

Federal Reserve FOMC Recap, March 2022

Today was the first Federal Reserve meeting since the rate increases were announced for 2022. Jerome Powell has said previously the Fed would evaluate all options available to them to combat inflation concerns. This included the Fed would halt their asset purchase program at a future undecided date. The main focus today was the anticipated […]

Stock Splits and their Impact

Some of the biggest names in tech and retail have undergone stock splits in recent memory. The most recent being Amazon having announced a 20-1 stock split the past week. Given the high value of amazon shares currently, and previously Tesla when they announced their split. The question for those that are new to stocks […]

CPI Report Febuary 2022

The consumer price index for the month of February was released today and it had a lot going on, but we are here to break it down for you. To start, let’s answer the question of, what is the CPI?  The CPI is by definition, “the measure of the average change over time in the […]

Give Yourself Enough Time

Time, the one thing we can never get back and that we all wish we had more of. In trading time and timing are both equally important. For a variety of reasons that will be covered in today’s article, time can be your friend or a thorn in your side when trading. It is directly […]