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    June 8, 2020

    How We Use Implied Volatility To Calculate the Expected Move

    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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    June 2, 2020

    What Is A Confidence Interval?

    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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    June 2, 2020

    How To Enter A Butterfly Order On ThinkOrSwim

    A butterfly spread is an options strategy combining bull and bear spreads, with a fixed risk and capped profit. These spreads, involving either four calls or four puts are intended as a market-neutral strategy and pay off the most if the underlying does not move prior to option expiration. Click the video below to see more detail. Grab a free day pass to […]

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    June 1, 2020

    Why Don’t VIX Options Move In Step With the Underlying Futures?

    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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    June 1, 2020

    A Spotlight On Spotify

    The Inside Bar.  It has not presented itself it the desired setting over the past few months.  Today, it did in Spotify ($SPOT) and we jumped on it. Click the video below to see how we employed it this morning. Grab a free day pass to one of our live signal trading rooms today>> http://bit.ly/nlonedaypass […]

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    May 28, 2020

    Ever hear of a Stop Close Order? 

    Most traders know what a stop order is whether they use them or not. Ask your average trader about a “stop on close” and you may get some head-scratching. It’s not too difficult to understand. It’s a stop that is favored by swing traders where you don’t have a market/limit stop order placed at a […]

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    May 28, 2020

    What Is A Trailing Stop

    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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    May 27, 2020

    What Does the “Reopening” of the US Mean for Energy?

    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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    May 27, 2020

    Congestion At Target?

    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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    May 26, 2020

    How Do Dividend Payments And Option Prices Work?

    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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