Bunching Definition.

When a stock’s price hits a certain level and then “bunches up” or consolidates at that level for some period of time, it is said to be “bunching up” at that level. This is usually taken to mean that the stock is forming a base or support level at that price, from which it may … Read more

Put Ratio Backspread Definition.

A put ratio backspread is an options trading strategy that is used when a trader believes that a stock will experience a significant price move, but is unsure of the direction. The trade involves buying a put option and selling a higher number of put options with a lower strike price. The hope is that … Read more