Categories

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



    December 12, 2019

    What Is “On-Balance Volume”?

    On-Balance Volume keeps a running total of volume flowing into or out of a security. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. A close lower than the previous day’s results in all of the day’s volume considered down-volume. A rising OBV is defined as a […]

    Read Article
    December 11, 2019

    What To Think About This Week’s FOMC Meeting.

    The CME FedWatch Tool analyzes the probability of FOMC rate moves for upcoming meetings. Using 30-Day Fed Fund futures pricing data, which have long been relied upon to express the market’s views on the likelihood of changes in U.S. monetary policy, the tool visualizes both current and historical probabilities of various FOMC rate change outcomes […]

    Read Article
    December 10, 2019

    Wait! Wait! There’s A Ratio Butterfly Too?

    If you have spent any time in Scott’s room, you are very familiar with strategies such as butterflies and even “broken-wing” butterflies.  But did you know there are also strategies that we categorize as “Ratioed Butterflies”? Click the video below to see our approach using this methodology. Grab a free day pass to one of […]

    Read Article
    December 10, 2019

    Not All Strikes Are the Same

    Volatility skew refers to the fact that options on the same underlying asset, like a stock or a future, with different strike prices, but which expire at the same time, have different implied volatilities. Implied volatility can be explained as the uncertainty related to an option’s underlying stock, and the changes triggered in different options’ trading prices. Puts […]

    Read Article
    December 2, 2019

    What Is Option Volatility Skew?

    Volatility skew refers to the fact that options on the same underlying asset, like a stock or a future, with different strike prices, but which expire at the same time, have different implied volatilities. Implied volatility can be explained as the uncertainty related to an option’s underlying stock, and the changes triggered in different options’ trading prices. Puts […]

    Read Article
    November 27, 2019

    An Update On Our Position In Starbucks

    We have had a bullish position in Starbucks ($SBUX) for a bit now.  Click the video below to follow the rationale on how we are addressing the risk associated with this position. Grab a free day pass to one of our live signal trading rooms today>>http://bit.ly/nl-freepass Follow me on Twitter: @cboesib

    Read Article
    November 21, 2019

    How To Deal With An Exercise/Assignment Position

    Dealing with a losing trade.  It’s not fun and certainly, no one looks forward to dealing with them.  It’s a fact of life for a trader and you must learn to deal with them or you will never be ultimately successful.  But, you also need to be informed (and thus empowered) to deal with the risks […]

    Read Article
    November 19, 2019

    Entering a Trade Is Easy, It’s Getting out That Takes Skill

    It’s relatively easy to get into a trade.  If you want to get long something, buy it if you want to get short something, sell it.  It’s a matter of pushing buttons.  I know I am being a bit facetious here, but you get the gist. It’s when and how to get out of a […]

    Read Article
    November 19, 2019

    When Is It Appropriate To Roll An Options Position?

    I am typically not a big fan of “rolling a position”.  Typically you get one of two things or both.  Either you increase your potential risk or you are just putting off the inevitable.  In all cases, you are going to generate more fees.  But there are times when it makes sense.  When you hold […]

    Read Article
    November 15, 2019

    Assessing Reward Vs. Risk

    One of the first lesson in trading to how to assess reward versus risk.  It seems like a pretty straightforward concept…that is until you actually have to do so.  How to quantify risk?  How to quantify reward?  What about when you layer in the complexities of options?  Watch this video as I break down each […]

    Read Article