A metric used in statistics to express how much a given value tends to deviate from the distribution's mean. The square root of the variance is used to calculate the standard deviation, a statistic that expresses how widely distributed a dataset is in relation to its mean. By calculating each data point's divergence from the mean, the standard deviation may be determined as the square root of variance. In simpler terms, a standard deviation is a measurement of how distant the data is from the mean. A low standard deviation suggests that data are concentrated around the mean, whereas a large standard deviation shows that data are more dispersed.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability