Posts by Mary Davis

In contrast, an active manager can favor stocks with higher expected returns. Therefore, though many portfolios will deliver similar levels of volatility reduction, they will offer very different levels of expected return. Factor investing is an inve...

This means that even if the IV of TATACOMM was at 48.2%, it was still trading at one of its highest levels similar to SUZLON. Therefore, before trading options using IV, one should be aware as to what has been the historical IV values for an option a...

With the stock at 164.18, one viable strategy would be to sell a strangle – selling 10 of the April 220 calls and selling 10 of the April 125 puts. A strangle strategy is similar to a straddle as both rely on the volatility of the market. This is bec...

For position traders, it’s important to identify the peaks and troughs that those zig-zag patterns form. During uptrends, those peaks form so-called higher highs and the troughs form higher lows , while during downtrends, peaks form lower highs and t...