Active Trading FAQs

  1. How does a swing trader use the stochastic oscillator?

  2. What is the difference between derivatives and options?

  3. How are rights distributed in a rights offering?

  4. How can I use an out-of-the-money put time spread for downside risk?

  5. Can an investor buy leveraged ETFs that track the automotive sector?

  6. What risks should I consider taking a short put position?

  7. What are the similarities and differences between the savings and loan (S&L) crisis ...

  8. What are some common cash-debt strategies that occur during a spinoff?

  9. How can I spot trading opportunities looking at year-to-date (YTD) performance?

  10. What happens if a software glitch fails to execute the strike price I set?

  11. Why should I consider buying an option if it's out-of-the-money?

  12. How does Net Operating Profit After Tax give a clearer view of the operating efficiency ...

  13. How can I determine the degree of financial leverage (DFL) for a particular company?

  14. How do traders use out-of-the-money options to hedge?

  15. Why should investors be wary of off balance sheet financing activities?

  16. In what market situations might a short put be a profitable trade?

  17. What industries typically use delta hedging techniques?

  18. What major events and policy decisions led to the savings and loan crisis (S&L crisis)?

  19. How is a short call used in a covered call option strategy?

  20. How does implied volatility impact the pricing of options?

  21. Which is better: dollar cost averaging or value averaging?

  22. How is a short call used in a naked call writing option strategy?

  23. What is the relationship between implied volatility and the volatility skew?

  24. What are the key differences between financial risk and business risk to a company?

  25. What options strategies are best suited for investing in the insurance sector?

  26. Why is the Nasdaq more volatile than the NYSE?

  27. How can I use Bollinger Bands® to trade binary options?

  28. What does a high unlevered free cash flow indicate about a business?

  29. How is a short call used in a collar option strategy?

  30. How can I use Bollinger Bands® to spot options trading opportunities?

  31. How does degree of financial leverage (DFL) affect earnings per share (EPS)?

  32. How is implied volatility for options impacted by a bearish market?

  33. How do prepaid expenses affect liquidity ratio calculations?

  34. Can I have a short put position in my IRA?

  35. Why should investors consider the fully diluted share amount?

  36. What are the SEC regulations on exercising stock options?

  37. What's the difference between basic shares and fully diluted shares?

  38. How do traders combine a short put with other positions to hedge?

  39. What is a double Bollinger Bands® strategy?

  40. What are the differences between delta hedging and beta hedging?

  41. How do I set a strike price in an options spread?

  42. What are some examples of positive correlation in technical stock market analysis?

  43. When should a business avoid debt financing?

  44. How do traders use Bollinger Bands® to identify a breakout?

  45. How is a short call used in a bear call spread option strategy?

  46. Can I buy index options on the Dow Jones Industrial Average?

  47. What's an effective options strategies for investing in the food and beverage sector?

  48. How do companies use the equity multiplier to determine a financing strategy?

  49. How do I set a strike price for a future?

  50. How can I use the equity multiplier to determine if a stock is a good investment?

  51. How are margin calls regulated by the SEC?

  52. How can investors benefit by understanding geometric means?

  53. What are some important financial ratios to evaluate with respect to consumer packaged ...

  54. How can derivatives be used to earn income?

  55. What does a falling open interest on a stock signal?

  56. How can I calculate the delta adjusted notional value?

  57. How can premium financing of life insurance help high net worth individuals (HNWI)?

  58. How is the price of a derivative determined?

  59. What expiry months are typically available for derivatives?

  60. What is the difference between derivatives and swaps?

  61. What are some of the more common Fibonacci retracements?

  62. With what kinds of securities does it make the most sense to enter a long position?

  63. What options strategies are best suited for investing in the utilities sector?

  64. How does off balance sheet financing work?

  65. What is the average debt/equity ratio of real estate companies?

  66. What option strategies can I use to earn additional income when investing in the ...

  67. What options strategies are best for investing in the industrial sector?

  68. What are the best options strategies for investing in the real estate sector?

  69. How is implied volatility used in the Black-Scholes formula?

  70. What does it mean to be long or short a derivative?

  71. What is an over-the-counter derivative?

  72. What does the underlying of a derivative refer to?

  73. What kinds of derivatives are types of contingent claims?

  74. What does it mean to take delivery of a derivative contract?

  75. How can derivatives be used for speculation?

  76. What does it mean when I get a Fed margin call?

  77. What does it mean to roll a derivative contract?

  78. How can derivatives be used for risk management?

  79. How can I profit from monitoring open interest?

  80. How do I Implement a Forex Strategy when spotting a Sanku (Three Gaps) Pattern?

  81. How is liquidity risk captured by the cash conversion cycle (CCC)?

  82. What debt to equity ratio is common for a bank?

  83. What is the relationship between degree of operating leverage and profits?

  84. What's a good forex strategy to use when spotting a Wedge-shaped Pattern?

  85. Is the drugs sector better suited for active or passive investment?

  86. What is the difference between share purchase rights and options?

  87. Why would a company issue a rights offering?

  88. How do I perform a financial analysis using Excel?

  89. What are the tax benefits of establishing a sinking fund?

  90. In what ways can a sinking fund affect bond returns?

  91. What is the difference between an option-adjusted spread and a Z-spread in reference ...

  92. What are the pros and cons of using the fixed charge coverage ratio?

  93. What are the different types of margin calls?

  94. What debt/equity ratio is typical for companies in the insurance sector?

  95. Can delta be used to calculate price volatility of an option?

  96. How do I use Trade Volume Index (TVI) to create a forex trading strategy?

  97. Why is the Trade Volume Index (TVI) important for traders and analysts?

  98. How do I use Time Segmented Volume (TSV) for creating a forex trading strategy?

  99. What is the Trade Volume Index (TVI) formula and how is it calculated?

  100. Why should investors care about risk weighted assets of a bank?

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