Go to to http://www.amazon.com/gp/product/B00JFB3V7O learn more about Option Greeks. Let's see how this works in other markets. This is the SPY and the SDS. Let's take a look at the DIAs, and its opposite, the DOG. That is the short ETF for the Dow Industrial Average. Basically, you're going to see the exact same pattern a little bit differently, because they are different ETFs, and they are measuring a different basket of stocks. You have very similar patterns. Remember, we're following the patterns. We have lower volatility on the DOG. We have higher volatility coming into the DIAs. When that happens, like what we're doing now, with the DIAs - we're getting high volatility, and we're getting low volatility in the DOG. It's important to keep an eye on that. What I found to be mostly true is that this rounding pattern, both in the short ETF, and the volatility at the top in the long ETF - when you see this rounding and lower volatility in the short, and the higher volatility rounded topping process in the long ETF, that's the time to start paying attention to a change in the market. Let's take a look at the QQQs and the PSQ. The PSQ is the short. It's a little bit more volatile. It's not quite as simple as the DIAs or the SPY. There is a lot more volatility in the NASDAQ issues. You can see that the spread is starting to widen, to the point, and we're getting a huge amount of volatility in the QQQs now, after having very low volatility. Here's the clue that you're looking at for the QQQs, at the end of 2008, and the early part of 2009. It was a lower volatility in the QQQs, and the higher volatility in the PSQs, the short ETF. You can see how higher volatility here led to a decline in the PSQ. Lower volatility confirmed the high volatility change in trend for the PSQ. You could have gone long the QQQs at this point, giving you a tremendous amount and a huge advantage in the market, by being able to identify low volatility and high volatility in these issues. If I was to share with you the single, the most promising, dramatic, interesting, profitable, and the safest way for you to trade, that is for you to identify low-volatility and high-volatility environments. It's absolutely critical for your trading, to understand how to take advantage of low-volatility environments, and how to identify when you're going from and transitioning from a low-volatility environment to a high-volatility environment, and when you're transitioning from a high-volatility environment to a low-volatility environment. For the last 100 years, and maybe even longer, this has been absolutely true. My studies go back as far as 1900 in the Dow Industrial Average. When you start to enter a high-volatility environment in the Dow, after the market has had a substantial rise, generally you are going to get a substantial pull-back. When you have a high-volatility environment, and all of a sudden, those bars start to get narrower and narrower - you start to see lower volume coming into the market, the bars are not as wide as they used to be, and they become rather small and diminutive. At that point, you understand that low volatility is starting to come back into the market. There's a good chance, after a long and protracted decline, that the market is ready to turn around and go higher. Identifying what environment you are in in a market is absolutely crucial for your success. For more Option Greeks videos be sure to check out our channel: http://www.youtube.com/channel/UCXr2lclULvZAUS7iaKfLQlg To learn more about the Genius Trading System course go to: http://www.amazon.com/gp/product/B00JFB3V7O Additional Tags ================ vertical spreads, options greeks, what is options trading, iron condor, option volatility, option spreads, options volatility, how to trade in options, option strategies, index options, equity options, virtual trading, options spreads, virtual options trading, options trading tutorial, option trading strategy, options trading course, how to trade stock options, options trading systems, options training, learning options, learn to trade options, option trading tutorial, options trading strategy, option trading course, option trading systems, options trading basics, option trading basics, option trading system, options trading courses, options trading training, trade options, what is a stock option, options strategies
Visibility: 219
Duration: 9m 5s
Rating: 2