Here in the Short-Term Options Room we not only day trade options, we do swing trades as well. A swing trade is a position that is held for multiple trading sessions. The average holding time for the swing signals in our room is right around five trading sessions. Click the video below to find out […]
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Remember, we trade in the world of probabilities, not possibilities. But how do we know what is reasonable or probable? Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT
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Curreny warfare is a way to export deflation. When one country weakens its exchange rate, another country’s exchange rate gets stronger. This makes imports cheaper for the country with the strengthening currency. A flood of cheap imports in its markets hampers inflation. Inflation is boosted by increasing domestic demand. The increasing domestic demand is backed by […]
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The premium of an option is often used interchangeably with price. While that is almost true, it’s not entirely true. The price of an option includes both intrinsic and extrinsic value. The premium of an option refers to just the extrinsic value. Watch the video below as we analyze the premium associated with our position […]
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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 […]
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This blog entry probably won’t teach you a lot about trading per se, but it may open up your mind to thinking outside of the box when it comes to probabilities. This problem is known as the “Birthday Paradox”. The premise starts with the question of how many people do you think it would take […]
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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 […]
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Prosper CEO Scott Bauer visited with TD Ameritrade Network’s Oliver Renick to discuss Salesforce.com (Ticker: CRM) earnings that will be released today after the close. Click the video below to see his analysis. Follow me on Twitter @CboeSIB
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It’s relatively easy to get yourself into a trade. Just pick a direction and act on it. It’s natural to want to do so. But, impulsivity can get you into trouble. In the following video we discuss how to analyze a set up, this time with CREE for earnings to show how we use discipline […]
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Remember, we trade in the world of probabilities, not possibilities. But how do we know what is reasonable or probable? Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT
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