You may have heard of the terms simple and compound accruals. What does it mean and how is it important to one’s trading account? Click the video below as I explain both of these concepts and how to apply them to your trading and risk methodologies. Follow me on Twitter @MikeShorrCBOT
Read Article
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 […]
Read Article
In contrast to historical volatility (HV), which looks at actual asset prices in the past, implied volatility (IV) looks ahead. … Implied volatility can be derived from the price of an option. Specifically, implied volatility is the expected future volatility of the stock that is implied by the price of the stock’s options Click the video below to see how we dive into this important aspect […]
Read Article
You’ve made the decision to start trading options. Congratulations! Options offer many advantages for the novice and experienced trader alike. But, “where do I start?” you may ask yourself. You can trade and invest in options at almost any major broker. Typically, you will also need to apply for, and be approved for, margin and […]
Read Article
Mathematically speaking, Cost of carry (COC) is the annualized interest percentage cost for a futures contract versus a similar position in cash market and carried to maturity of the futures contract, less any dividend expected till the expiry of the contract. Imagine you had to buy a commodity and store this for future delivery for […]
Read Article
The leverage that options afford a trader is one of the cornerstones of the options methodology we employ here in our options rooms at Prosper Academy. Click the video below to see us in action! Follow me on Twitter @MikeShorrCbot
Read Article
Volatility skew refers to the fact that options on the same underlying asset, like a stock or a future, with different strike prices, but which expire at the same time, have different implied volatilities. Implied volatility can be explained as the uncertainty related to an option’s underlying stock, and the changes triggered in different options’ trading prices. Puts […]
Read Article
The premium of an option is often used interchangeably with price. While that is almost true, it’s not entirely true. The price of an option includes both intrinsic and extrinsic value. The premium of an option refers to just the extrinsic value. Watch the video below as we analyze the premium associated with our position […]
Read Article
In contrast to historical volatility (HV), which looks at actual asset prices in the past, implied volatility (IV) looks ahead. … Implied volatility can be derived from the price of an option. Specifically, implied volatility is the expected future volatility of the stock that is implied by the price of the stock’s options Click the video below to see how we dive into this important aspect […]
Read Article
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, […]
Read Article
We choose to let our members and students speak for themselves. We do not actively solicit testimonials, no compensation has been paid for any testimonial, and testimonials are not necessarily representative of the experience of all students. All monetary claims made in testimonials that you see depicted in our marketing material have been verified by Prosper Trading Academy and attested to by the members that have given them. Verified testimonials encompass “experience” reviews that highlight the personal experiences of working with our team and “performance” testimonials where we verify trading success of students who have enrolled in our programs.Given the broad reach of the internet, testimonials and reviews of our programs that we have not been able to verify can be found on various websites across the internet which are beyond our editorial control. While we do very much enjoy hearing positive things from our students and it is critical to our mission that everyone is satisfied with their journey with Prosper, we encourage you to take both verified and unverified testimonials for what they are.