October 9, 2019

What is Option Put-Call Parity?

Put–call parity defines a relationship between the price of a European call option and European put option, both with the identical strike price and expiry, namely that a portfolio of a long call option and a short put option is equivalent to (and hence has the same value as) a single forward contract at this strike price and expiry. This is because if the price at expiry is above the strike price, the call will be exercised, while if it is below, the put will be exercised, and thus, in either case, one unit of the asset will be purchased for the strike price, exactly as in a forward contract.

Click the video below (from Khan Academy) to learn more:

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.

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Who Wants To Sit Down With Charles Moon? You Know You Do!

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October 17, 2019

Introducing the ZoMo!

The ZoMo is a swing-trading methodology utilized in the STO Room that is very similar to the Zone day-trading methodology.  Although it is a swing-trading methodology, the time horizon is a bit shorter than that for a normal swing trade. These signals typically last 2 to 5 trading sessions. Click the video below as I […]

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October 17, 2019

The Worst Day For Workday

I am unsure if yesterday was the worst trading day for WDAY in their history, but I am pretty sure it is one of their worst. Down over 20% and now negative for 2019, investors are dumping shares after WDAY raised concerns about future growth in sales. Couple this with Morgan Stanley giving a negative […]

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October 17, 2019

Introducing the ZoMo!

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I am unsure if yesterday was the worst trading day for WDAY in their history, but I am pretty sure it is one of their worst. Down over 20% and now negative for 2019, investors are dumping shares after WDAY raised concerns about future growth in sales. Couple this with Morgan Stanley giving a negative […]

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