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Darvas Box Theory – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Darvas Box Theory?The Darvas box theory was developed in the 1950s by a professional dancer, Nicolas Darvas. This is a trading strategy used by investors to target stocks by considering high trading volume as a key indicator of rise in the value of stocks....

Calamity Call – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Calamity Call?A calamity call is used in collateralized mortgage obligation (CMO), it serves as a protective measure. A calamity call requires that an issuer pay off (retire) a portion of the CMO if the underlying mortgage does not generate enough cash...

Backpricing (Forward Contracts) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Backpricing?Backpricing is a pricing method used for standardized forward contracts in which prices for the commodity to be delivered at a future date is set at a later date. That is, the seller and the buyer agree to follow through a future contract without...

Backspread (Securities Trading) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Backspread Ratio?A ratio spread is a strategy used by traders to understand the ratio of an underlying trading plan or two-legged trading plan. This strategy is commonly used in options, it entails the purchase of a number of stocks and selling more of the...

Bagging the Street – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Bagging the Street?Bagging the Street is a technique that investors use in investment market to pursue profits from investment changes (such as changes in price) that occur before the execution of large-volume trades. When investors notice that a large block...

Buy-Write (Options) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Buy-Write (Options)?Buy-write is an options-based strategy in which an investor buys a stock, and at the same time, sells a call option on that very stock or asset. In this way, he/she can earn option premium, and hence, create income. Since the underlying...
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