What is the Probability of Profit

Probability is the chance that something will happen – how likely it is that some event will happen. Sometimes you can measure a probability with a number like “10% chance of rain”, or you can use words such as impossible, unlikely, possible, even chance, likely and certain. When a probability trader is to set up a trade, he will sell […]

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The Power of Options Delta

Options Delta is a number that measures how much the theoretical value of an option will change if the underlying stock moves up or down $1.00. Positive delta means that the option position will rise in value if the stock price rises, and drop in value if the stock price falls. Negative delta means that the option position will theoretically […]

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