Are you interested in trading options in the short term? If so, you are in luck! We have multiple options rooms here at Prosper Trading Academy and short-term options is one of these rooms. Click the video below to take a quick tour of the room with our instructor Mike Shorr. Follow me on Twitter […]
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Not all options are created equally. There are different types of expiration styles as well as expiration time cycles. Here are examples of each: American Style Options The term “American style” in relation to options has nothing to do with where contracts are bought or sold, but rather to the terms of the contracts. Options […]
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Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]
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Are you interested in trading options in the short term? If so, you are in luck! We have multiple options rooms here at Prosper Trading Academy and short-term options is one of these rooms. Click the video below to take a quick tour of the room with our instructor Mike Shorr. Follow me on Twitter […]
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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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Today is a great day to talk about the VIX. It can be confusing. The VIX index and futures are connected by a statistical relationship that depends on how fast the VIX tends to move toward its average level, the volatility of the index and how much time is left until expiration. Near expiration, the […]
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Option margin is the cash or securities an investor must deposit in their account as collateral before writing – or selling – options. Margin requirements are established by the Federal Reserve Board in Regulation T. Option margin differs from other types of margin that you may associate with stock or futures trading. These types of […]
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Rho is the rate at which the price of a derivative changes relative to a change in the risk-free rate of interest. Rho measures the sensitivity of an option or options portfolio to a change in interest rate. Rho may also refer to the aggregated risk exposure to interest rate changes that exist for a book of several options positions. For example, […]
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The Hull Entry is one of the technical signals we use to provide a tactical entry point for a directional signal. We have one such set-up in Twilio (Ticker: TWLO). Click the video below as I break down the chart and show how we will approach this with options should we get to our price […]
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We talk a lot about price distributions, standard deviations, confidence intervals, etc. in our rooms. What are we talking about? We throw these terms around like it’s “2+2=4” and that is not fair. Here is what we are talking aboutFor example, a 95% confidence interval is a range of values that you can be 95% […]
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