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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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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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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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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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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Cash dividends affect option prices through their effect on the underlying stock price. Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, high cash dividends imply lower call premiums and higher put premiums. Click the video below to see how I break this down for the class. Follow me at on Twitter @CboeSib
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What to do when you hold an option at expiration that is in the money? Many feel it’s time to panic. That is not the case. Click the video below to find out why. Follow me on Twitter: @CboeSIB
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Although not strategies that we employ in the Short-Term Options Room, straddles and strangles can be very viable options strategies if used in the right circumstances. Click the video link below to hear about the similarities and differences between the two strategies and when the best time to use them is. Grab a free day […]
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The Polarized Fractal Efficiency (PFE) is a technical indicator that was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates […]
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It’s pretty easy once you learn how, but until then it is a daunting task to learn how to enter option order in ThinkOrSwim Take a look at this video to see how we can do this accurately. Grab a free day pass to one of our live signal trading rooms today>> http://bit.ly/nlonedaypass Don’t forget […]
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