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Beginners, experts and everyone in between can enjoy big gains or suffer steep losses in options trading. Variables like strategy, risk and market behavior all play a role.
The third Fast Money road show was broadcast live from the Cadillac Palace Theatre in Chicago on 2008-05-16. Making special guest appearances in this edition were CME Chairman Terry Duffy , personal finance guru Suze Orman (host of CNBC's The Suze Orman Show ) and Playboy Enterprises CEO Christie Hefner .
A long butterfly options strategy consists of the following options: Long 1 call with a strike price of (X − a) Short 2 calls with a strike price of X; Long 1 call with a strike price of (X + a) where X = the spot price (i.e. current market price of underlying) and a > 0. Using put–call parity a long butterfly can also be created as follows:
This setup works similarly to buying call options. 2. Go short futures. When you sell, or “go short,” futures, you’re making a directional bet on the deliverable, expecting its price to fall ...
The multiplier for the Dow Jones is 5, essentially meaning that Dow Futures are working on 5-1 leverage. If the Dow Futures are trading at 10,000, a single futures contract would have a market value of $50,000. For every 1 point the Dow Jones Industrial Average fluctuates, the Dow Futures contract will increase or decrease $5.
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Order Flow traders can see both Limit orders and Market orders being placed, footprint charts show only executed market orders and therefore show the actual volume of buyers and sellers. [ 5 ] limit orders are price points where traders have ordered to buy or sell a stock, these orders will not get executed unless the price of the market hits ...
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