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    June 2, 2020

    Why We Manage Risk the Way That We Do

    Shares of Ulta Beauty tanked more than 20% after the company reported earnings after the bell Thursday that missed analysts’ expectations and slashed its outlook for the fiscal year. The company said that the cosmetics industry has struggled as a whole this cycle, because there haven’t been innovative beauty routines that drive consumers to purchase products as […]

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    June 2, 2020

    What Is A Confidence Interval?

    We talk a lot about price distributions, standard deviations, confidence intervals, etc. in our rooms. What are we talking about? We throw these terms around like it’s “2+2=4” and that is not fair. Here is what we are talking aboutFor example, a 95% confidence interval is a range of values that you can be 95% […]

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    June 2, 2020

    How To Enter A Butterfly Order On ThinkOrSwim

    A butterfly spread is an options strategy combining bull and bear spreads, with a fixed risk and capped profit. These spreads, involving either four calls or four puts are intended as a market-neutral strategy and pay off the most if the underlying does not move prior to option expiration. Click the video below to see more detail. Grab a free day pass to […]

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    June 1, 2020

    Why Don’t VIX Options Move In Step With the Underlying Futures?

    Today is a great day to talk about the VIX.  It can be confusing. The VIX index and futures are connected by a statistical relationship that depends on how fast the VIX tends to move toward its average level, the volatility of the index and how much time is left until expiration. Near expiration, the […]

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    June 1, 2020

    A Spotlight On Spotify

    The Inside Bar.  It has not presented itself it the desired setting over the past few months.  Today, it did in Spotify ($SPOT) and we jumped on it. Click the video below to see how we employed it this morning. Grab a free day pass to one of our live signal trading rooms today>> http://bit.ly/nlonedaypass […]

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    May 28, 2020

    What Is A Trailing Stop

    A trailing stop order sets the stop price at a fixed amount below the market price with an attached “trailing” amount. As the price of an option rises, the stop price rises by the trail amount, but if the option price falls, the stop-loss price doesn’t change, and a market order is submitted when the stop price is hit. Click the video below to see […]

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    May 28, 2020

    What is Option Put-Call Parity?

    Put–call parity defines a relationship between the price of a European call option and European put option, both with the identical strike price and expiry, namely that a portfolio of a long call option and a short put option is equivalent to (and hence has the same value as) a single forward contract at this strike price and expiry. This is […]

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    May 27, 2020

    What is a Collar Option Spread?

    A collar option spread is another example of a spread that you won’t see a signal coming out of either of our options rooms. Not because it is too risky or a bad idea, but it necessitates holding an underlying stock position. But it’s important to know what it is and you may get to […]

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    May 27, 2020

    What Does the “Reopening” of the US Mean for Energy?

    Even if you don’t watch financial news, you have to know that gas prices are probably somewhere around when you were let’s just say quite a bit younger. Click the video below to see how Scott explains his take on the energy market Follow him on Twitter  @CboeSib    

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    May 27, 2020

    Congestion At Target?

    The Congestion Entry is not necessarily the most popular methodology we employ in the short-term option room but it is a very powerful and reliable one. Click the video below to see how we employed it in Target ($TGT) this morning. Grab a free day pass to one of our live signal trading rooms today>> […]

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