Gamma is the first derivative of delta and is used when trying to gauge the price movement of an option, relative to the amount it is in or out of the money. If you think about delta as the speed of an option, think about gamma as the acceleration. In that same regard, gamma is the […]
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You may have heard of the terms simple and compound accruals. What does it mean and how is it important to one’s trading account. Click the video below as I explain both of these concepts and how to apply them to your trading regimen. Follow me on Twitter @MikeShorrCBOT
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We spoke about our positions in Cree Incorporated (Ticker: CREE) late last week. Today, we revisit our position as we continued to manage this position. Click the video below to see how we handled. CREE and how we are maximizing the value of our plays Follow me at on Twitter @CboeSib
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You’ve made the decision to start trading options. Congratulations! Options offer many advantages for the novice and experienced trader alike. But, “where do I start?” you may ask yourself. You can trade and invest in options at almost any major broker. Typically, you will also need to apply for, and be approved for, margin and […]
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We also have a couple of positions on in Cree Incorporated (Ticker: CREE) Click the video below to see what is going on with CREE and how we continue to manage our risk and how this position has evolved over time into what we have on now. Follow me at on Twitter @CboeSib
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We have had a position on in Shopify (Ticker: SHOP) for a little more than a week now. SHOP took a bit of a hit early on but has rallied back nicely and the position is performing nicely. Click the video below to see what is going on with SHOP and how we continue to […]
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It’s easy to “rearview mirror” trade. That’s not how we do things here at Prosper Trading Academy. We are totally transparent with everything we do. So, I wanted to put out a video today about the discussion that we had yesterday regarding LULU earnings which came out today. We can only assess the facts in […]
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How is an option’s value derived? Ultimately, it’s up to the laws of supply and demand but in the time before expiration, it’s up to the options traders to determine value. Click the video below to see how we accomplish this task. Follow me at on Twitter @CboeSib
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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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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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