Mathematically speaking, Cost of carry (COC) is the annualized interest percentage cost for a futures contract versus a similar position in cash market and carried to maturity of the futures contract, less any dividend expected till the expiry of the contract. Imagine you had to buy a commodity and store this for future delivery for […]
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Roll your position! That’s an easy way to not realize a loser (that was tongue in cheek). There are times when this makes sense, but you have to have the correct reasoning to do so. Just not realizing a loser is not one of them. Click the video below to hear when it’s appropriate to […]
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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 below to hear about the similarities and differences between the two strategies and when the best time to use them is. Follow me on Twitter @MikeShorrCbot […]
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Prosper CEO Scott Bauer visited with TD Ameritrade Network’s Oliver Renick to discuss NVDA earnings that will be released today after the close. Click the video below to see our analysis and subsequent signal of the earnings setup. Follow me on Twitter @CboeSIB
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Check out the video below to see how we turned our put spread in SPY into essentially a riskless trade with some great upside! Follow me on Twitter @CboeSIB
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Moving averages are used to pinpoint trade areas, to identify trends, and to analyze markets. Moving averages help traders isolate the trend in a security, or the lack of one, and can also signal when a trend may be reversing. Two of the most common types are simple and exponential. We will look at the […]
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NVIDIA (Ticker: NVDA) designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market. Its primary GPU product line, labeled “GeForce”, is in direct competition with Advanced Micro Devices’ (AMD) “Radeon” products. They report earnings after the close on […]
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Options traders often refer to the delta, gamma, vega, rho and theta of their option positions. Collectively, these terms are known as the Greeks, and they provide a way to measure the sensitivity of an option’s price to quantifiable factors. Today, I want to focus on theta. Theta is the time-decay component of the option pricing model. Click the […]
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An option’s gamma is a measure of the rate of change of its delta. The gamma of an option reflects the change in the delta in response to a one-point movement of the underlying stock price. Like the delta, the gamma is not a static measure. It is constantly changing, even with tiny movements of the […]
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JD.com is the world’s leading company in high tech and AI delivery through drones, autonomous technology and robots, and possesses the largest drone delivery system, infrastructure and capability in the world. They report earnings before the open tomorrow. Click the video below to see our analysis of the earnings setup. Follow me on Twitter @CboeSIB
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