Reading Time: 3 minutesBuying Leaps Calls as aStock substitute We’ve already warned you against starting off by purchasing out-of-the-money, short-term calls. Here’s a method of using calls that might work for the beginning option trader: buying long-term calls, or “LEAPS”. The goal here is to reap benefits similar to those you’d see if you owned the stock, while
Dissecting The All Too Famous Zig-Zag Pattern
A zigzag in a bull market is a simple three-wave declining pattern labeled A-B-C. The wave sequence is 5-3-5.
- A three wave move in Wave A, signals a flat or triangle for Wave B
- A triangle always occurs in a position prior to the final wave
- Wave C is the final wave in the sequence