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    July 27, 2020

    What Do You Mean by “Scalping Gamma”?

    “Gamma Scalping” is a concept that retail options traders should know about, but frankly will rarely, if ever, use.  Not because it is a bad idea, but because it is capital intensive and it’s necessary to own the underlying asset. “Gamma Scalping” involves the process of scalping in and out of a stock or futures […]

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    June 10, 2020

    Helping You Understand Option Gamma

    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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    June 9, 2020

    What Is the PFE and How Do We Use It in Our Trading Methodologies

    The Polarized Fractal Efficiency (PFE) is a technical indicator that was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates […]

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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 8, 2020

    How to Calculate Profit and Loss for a Broken Wing Butterfly

    When a new trader hears the term “broken wing butterfly” it tends to send shivers down his or her spine.  The term sounds really complicated.   It does not have to be.  If you break down the components of a bwf, you will see that it is simply buying one vertical spread and selling a narrower […]

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    June 2, 2020

    Why We Manage Risk the Way That We Do

    Shares of Ulta Beauty tanked more than 20% after the company reported earnings after the bell Thursday that missed analysts’ expectations and slashed its outlook for the fiscal year. The company said that the cosmetics industry has struggled as a whole this cycle, because there haven’t been innovative beauty routines that drive consumers to purchase products as […]

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    June 1, 2020

    Catch the Newest Wave In Trading…Penny Stocks With Charles Moon

    Here’s a sneak peek of one of the industry’s most reputable, hands-on trading programs with Charles Moon. Grab a free day pass to one of our live signal trading rooms today>>http://bit.ly/fb-free-pass  

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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 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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    May 21, 2020

    What Is the PFE and How Do We Use It in Our Trading Methodologies

    The Polarized Fractal Efficiency (PFE) is a technical indicator that was developed by Hans Hannula to determine price efficiency over a user-defined period. This indicator fluctuates between -100 and +100, with 0 as the centerline. Securities with a PFE greater than zero are deemed to be trending up, while a reading of less than zero indicates […]

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