In this article we will explore how premium can change. First we will look at how premium can lose value after only one day due to lack of price action. Secondly, at the end of an option’s contract, near expiry, one would...
Read MoreI was at a leadership conference this past week and was shown a TED video. The theme of the video was “What would you do if you knew you wouldn’t fail?” Simple but profound. Well the world doesn’t work...
Read MoreLast week, I shared a trade taken in the Extended Learning Track (XLT) on July 16th. The XLT is our graduate online trading program. The purpose of the article was to point out how important it is to keep trading simple. I...
Read MoreThis article will look at four different short vertical call spreads on the same underlying in order to distinguish which call spread is most suitable. In the options class I recently taught at our New York City Center, a ticker...
Read MoreHerb is a Futures Index day trader. He has been actively trading for several years. His profits are erratic and undependable, often going dramatically up and down in the same session. When Herb is making money his confidence...
Read MoreThe dog days of summer are upon us. This means hotter than usual temperatures and vacation time for many folks. For those of us that have kids, this also means that all of that free time with them is winding down, as...
Read MoreVolatility is a measurement of how far the price of a security might move in the future. If there is high volatility, then there should be large swings in price and fast movement. When volatility is low, prices are expected to...
Read MoreHello traders! This week I’d like to discuss a common misconception that new traders have – that professional traders sit and stare at their computer all day, making dozens of trades during their trading day. In...
Read MoreWhen we are trying to learn a new skill, we usually try to copy the actions of someone who is already successful in that field. When it comes to making money in the markets, we can easily see that the institutional traders are...
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