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.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr