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    August 3, 2020

    Option Ratio and Backspreads

      A ratio spread is a neutral options strategy in which an investor simultaneously holds an unequal number of long and short or written options. … Conceptually, this is similar to a spread strategy in that there are short and long positions of the same options type (put or call) on the same underlying asset.   A backspread is s a type of option trading plan in which […]

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    July 28, 2020

    A Synthetic Approach To Options

    A call is an option that gives the buyer the right, not the obligation, to buy an underlying asset at a certain point in time at a certain price.  A put option gives the buyer the right, not the obligation, to sell an underlying asset at a certain point in time at a certain price.  […]

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    July 27, 2020

    Option Gamma

    Gamma is the rate of change for an option’s delta based on a single-point move in the delta’s price. Gamma is at its highest when an option is at the money and is at its lowest when it is further away from the money. Click the video below to get more detail. Grab a free day pass to one of our live […]

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    July 27, 2020

    Option Delta and Theta

    Option Delta measures the degree to which an option is exposed to shifts in the price of the underlying asset (i.e., a stock) or commodity (i.e., a futures contract). Values range from 1.0 to –1.0 (or 100 to –100, depending on the convention employed). Option Theta refers to the rate of decline in the value of an option over time. […]

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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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    May 26, 2020

    What To Do With A Short Option Position At Expiration

    What to do when you hold an option at expiration that is in the money?  Many feel it’s time to panic.  That is not the case.  Click the video below to find out why. Follow me on Twitter: @CboeSIB

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    April 20, 2020

    It’s All About the Math!

    Options can be complicated.  It doesn’t have to be that way!  Watch how I break this down to make it very clear! Follow me on Twitter: @CboeSIB  

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    March 26, 2020

    A Synthetic Approach To Options

    A call is an option that gives the buyer the right, not the obligation, to buy an underlying asset at a certain point in time at a certain price.  A put option gives the buyer the right, not the obligation, to sell an underlying asset at a certain point in time at a certain price.  […]

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    March 25, 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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    January 24, 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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