August 6, 2019

It’s All About Dollars At Risk

When trading options, position allocation is one of the keys to avoiding undue variance in your trading portfolio.  Watch this short video on how to access your risk and allocate accordingly.
Follow me on Twitter @MikeShorrCBOT

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

Read Similar Articles

https://www.prospertrading.com/3-stocks-scott-bauer-is-watching-this-week/3 Stocks Scott Bauer is Watching This Week
August 25, 2025

3 Stocks Scott Bauer is Watching This Week

Scott Bauer joins Diane King Hall on the Charles Schwab Network to share 3 stocks he’s watching this week.

Read Article
March 6, 2025

Options Trading Mistakes That Can Blow Up Your Account (And How to Avoid Them)

Options trading offers huge potential rewards—but it also comes with serious risks that can be mitigated. I’ve seen traders time and time again jump in without fully understanding the mechanics, leading to costly mistakes that wipe out their accounts overnight. President Trump’s new tariff policies are shaking up global markets, adding another layer of uncertainty […]

Read Article
December 6, 2024

The Broken-Wing Butterfly: A Hidden Gem in Options Trading

Options traders employ numerous strategies to achieve their goals in the market, and the broken-wing butterfly is a particularly useful technique to have at your disposal. This guide will explain the strategy in detail and show you how it can potentially be leveraged in various situations to take advantage of the market environment. Want My […]

Read Article

Read Similar Articles

https://www.prospertrading.com/how-implied-volatility-affects-intrinsic-and-extrinsic-value-of-options/How Implied Volatility Affects Intrinsic And Extrinsic Value Of Options
November 11, 2025

How Implied Volatility Affects Intrinsic And Extrinsic Value Of Options

Implied volatility (IV) helps traders measure how much the market believes the price of an underlying asset will move in the future. What many traders don’t know is that Implied Volatility can play a key role in affecting the intrinsic and extrinsic value of options. These metrics can show how much more an in-the-money (ITM) […]

Read Article
https://www.prospertrading.com/panw-stock-weird-pattern-gives-charlie-moon-bullish-trade-idea/PANW Stock: Weird Pattern Gives Charlie Moon Bullish Trade Idea
November 7, 2025

PANW Stock: Weird Pattern Gives Charlie Moon Bullish Trade Idea

PANW Stock (Palo Alto) skyrocketed over 27% in the last three months. Despite dipping slightly after coming off a new high, Charlie Moon believes the stock could be positioning itself for a potential near-term price jump. His reasoning is based on a strange pattern he spotted in the stock’s chart last week. Charlie guest hosted […]

Read Article
https://www.prospertrading.com/micron-stock-two-tactical-entries-two-consider/Micron Stock: Two Tactical Entries Two Consider
November 7, 2025

Micron Stock: Two Tactical Entries Two Consider

Micron stock (MU) has been on an absolute tear in 2025. The stock is up nearly 173%, and just hit a new all-time high. Is it running out of steam, or could Micron stock have more potential trading opportunities in store? In yesterday’s MarketMinds episode, Mike Shorr gave a quick straightforward analysis on Micron stock. […]

Read Article