October 28, 2019

You May Have Heard About Pin Risk. What Is It?

Pin risk occurs when the market price of the underlier of an option contract at the time of the contract’s expiration is close to the option’s strike price. In this situation, the underlier is said to have pinned.

Click the video below to see me break down this important topic.

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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.

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