101Option Trading Secrets Section 5 pptx

... exchanges use a very short term volatility of between 20 and 30 days due to the fact they Secret 55 OPTION ANALYSIS CAN BE EASY Every option investor should do some options analysis be- fore entering ... expiration?

Ngày tải lên: 03/07/2014, 15:20

... Value Advantage 155 55 Option Analysis Can Be Easy 159 56 The Key to Options Analysis 163 57 Implied Volatility—An Option Analysis Shortcut 1 65 58 Keep Your Eyes on the Delta 169 59 Use Probability ... Call Writing 143 51 Covered Call Writing Strategies 1 45 52 Use Naked Put Writing to Buy Stock 147 53 Naked Put Writing Can Create a Win-Win Strategy 149 Section 5: Option Analysis...

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... example, after the tragic World Trade Center events of September 11, 2001, the VIX hit a high of over 57 % One final comment here. Bottoms are made when the sellers are exhausted. This occurs when a stock ... bought the stock at 7- cents and sold it the next day for 24-cents a share. THE PREDICTION GAME 54 Secret 8 REGRESSION BACK TO THE MEAN “Regression back to the mean” is a statistical...

Ngày tải lên: 03/07/2014, 15:20

... want to buy the stock if it falls to 35, rather than placing a limit order to buy the stock at 35, write a Jan 35 put at 2 ($200). Now if Pfizer is at or below 35 at expiration or if you are as- signed ... at 40 and write the Pfizer Jan 45 call at 2, you receive $200 to your account but are obligated if Pfizer is above 45 and you are exercised to deliver the stock at 45. Covered call writ...

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... 45 call for 1. Now the cost of your position is only 1 point instead of 2, but you cannot profit beyond 45. Altogether, your risk-reward picture looks like this. You risk 1 point to make a 5 ... OF OPTION SPREADS BEWARE OF SLIPPAGE! One of my major rules of successful option trading is to minimize your trading. There are high costs to option trading. Not only are there commissions, bu...

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... advantage we can in the market. One important trading tactic that has a big advantage over traditional trading is internet trading. Traditional trading, telephone trading, where you have to call a broker ... y21 w3 hc" alt="" Secret 75 THE HIDDEN COST OF TRADING When we talk about the cost of trading, we usually think of commissions, but there is an even greater cost of trading...

Ngày tải lên: 03/07/2014, 15:20

... for the unexpected. TRADING TIPS 254

Ngày tải lên: 03/07/2014, 15:20

... with the type of trades and analysis that you find successful. TRADING TIPS 260

Ngày tải lên: 03/07/2014, 15:20

... Energy (DUK) Jan 27 .5 call Duke Energy is at 22 .54 Sell DUK Oct 25. call Stop at 26 Spread credit of . 05 Value of Jan 27 .5 call at Oct expiration is .5 Total profit = .5 + . 05 = .55 Position did not ... America (BAC) Nov 75 call BAC is at 63. 35 Sell BAC Oct 70 call Stop at 71 CONTENTS 2 85 Spread credit of . 25 Value of Nov 75 call at Oct expiration is 1 Total profit = 1. 25...

Ngày tải lên: 03/07/2014, 15:20

... is out-of-the-money by 2 .5, 5, 10 or more points, i.e. IBM Jan 75 call at 1. 3. Subtract the price of the option you have sold from the option you have bought, i.e. Jan 75 call at 1 from Jan 70 call ... IBM 70– 75 spread would be 150 % (300/200= 150 %). A probability calculator can be used to measure your probability of achieving such re- turns. With the IBM spread, IBM must close above...

Ngày tải lên: 03/07/2014, 15:20