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The Skinny on Options: Abstract Applications

Parabolic Moves

The Skinny on Options: Abstract Applications

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Hang around the world of finance long enough, and some high-level, mathematical terms, such as kurtosis or heteroskedasticity, will certainly cross your path. So today, we take a crack at understanding another term from this same category: a Parabolic Move. Simply put, a parabola is the graphical output from a quadratic expression, and it indicates something that is moving very quickly at an extremely high velocity.

And if we examine the price action of TSLA in just the last few weeks, we see a real-time example of a Parabolic Move.

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