Categories

Sign Up to Receive the Latest Trading Tips and News from Prosper



    September 10, 2019

    How to Calculate Profit and Loss for a Broken Wing Butterfly

    When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine.  The term sounds really complicated.   It does not have to be.  If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower […]

    Read Article
    September 9, 2019

    The Important Concept of Expected Value

    Many traders look at their win to loss rate when evaluating their trading.  This is an important concept, if you are right way more than you are wrong, you probably are not going to enjoy much success.  But, many are missing one part of the puzzle, expected value.  Not only IF you are right or […]

    Read Article
    September 6, 2019

    What Is the Difference Between A Long Call and A Short Put Option?

    A long call option and a short put option both accomplish the same goal.  They profit when the underlying security goes up in value.  But the risks associated with them are vastly different. Click the video below to get a complete explanation. Follow me on Twitter @CboeSIB

    Read Article
    September 5, 2019

    Sometimes We Even Get A Free Shot

    Palo Alto Networks (Ticket: PANW) reported earnings yesterday after the close.  We put on a strangle swap for the report’s release. After a wild ride, things settled in and we were able to get out of the call side of the swap for breakeven or even a decent profit. That left us with the put […]

    Read Article
    August 6, 2019

    How to Calculate Profit and Loss for a Broken Wing Butterfly

    When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine.  The term sounds really complicated.   It does not have to be.  If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower […]

    Read Article
    May 10, 2019

    How to Calculate Profit and Loss for a Broken Wing Butterfly

    When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine.  The term sounds really complicated.   It does not have to be.  If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower […]

    Read Article