Duration is the number of years it takes for an investor to be repaid by the total cash flows of a bond. Duration can also be used to assess the price sensitivity of a bond or fixed income portfolio to changes in interest rates. Because many forms of duration measurements are also computed in years, the length of a bond is frequently confused with its term or time to maturity. However, the number of years until a bond's principal is repaid is a linear measure which is independent of interest rate fluctuations. When compared to maturity time, duration is nonlinear and increases at an ever-increasing rate.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability