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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This cloud-based security company that saw strong momentum to the upside during the 2nd and 3rd quarters gave back all of their gains during the 4th quarter. July 26th, 2019 ZS put in a 52 week high of 89.54. It then traded as low as 46.04 on 9/11/19, only to extend that down side range […]
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You may have heard that said many times throughout your life. If you have been trading for as long as I have, it can just go in one ear and right out the other. Let’s take a minute to analyze these encouraging words. Why? They help with self-confidence and self-confidence helps you to become a […]
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After dropping more than 20% at the close of the market on 8/29/19 things didn’t look so good for the cosmetic company. Their report wasn’t all bad as listed below, although the market didn’t like it and the stock fell 40% off of its highs. Adjusted earnings per share: $2.76, vs. $2.80 expected Revenue: $1.67 […]
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Pin risk is something that is not talked about a lot in most retail trading spaces. It does not come up often, but it’s something you should be aware of. Click the video to learn more about this topic. Grab a free day pass to one of our live signal trading rooms today>>http://bit.ly/nl-free-pass Follow Scott […]
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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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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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Throughout my twelve year career as a trader I’ve learned a lot about the ever changing market and how to adapt my approach to it. One thing I’ve never changed is trailing my stop with the market once my first profit target is filled. This is a method that has nurtured my discipline and helped […]
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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. Obviously, we use single options for our […]
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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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