101Option Trading Secrets Section 6 doc
101Option Trading Secrets Section 6 doc
... AALLIIVVEE!!
Secret
68
THE SECRET
COSTS 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 ... class="bi x0 y4 w1 h3" alt=""
Section 6
Spreading
101Option Trading Secrets Section 2 doc
... October.
One reason is that tax-loss selling by institutions occurs in
101Option Trading Secrets Section 7 doc
... 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 ... 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, and
that is...
101Option Trading Secrets Section 1 pot
... Baysian Analysis 181
65 Gone in 60 Minutes 187
66 Your Crystal Ball to the Future or
Risk-Reward Analysis Using AI 189
Section 6: Spreading
67 The Spread Advantage 195
68 The Secret Costs of ... the Delta 169
59 Use Probability Analysis 171
60 The Secret Weapon of Option Analysis 173
61 A Tool for Your Arsenal 175
62 Searching for the Best Plays 177
63 Situational Analysis 179...
101Option Trading Secrets Section 4 ppsx
... would get the stock
for a price of 6. 50. (The put buyer has the right to put the stock
to the writer at 7.50, but I already had 1 point in my pocket, so
my cost is 6. 50.) Even if CLPA were to go ... an
option and watch it expire. Just once in a while they will get
stopped out of their position.
Section 4
Option
Writing
Secret
53
NAKED PUT
WRITING CAN
CREATE A
WIN-WIN
STRATEGY
A win-win...
101Option Trading Secrets Section 5 pptx
... at 65 :
$200 Profit
× 20 %
$40
When IBM Stock Price is at 70:
$700 Profit
× 10 %
$70
Now let’s add up all the results of these multiplications:
– 90 IBM at 60 or lower
0 IBM at 63
+ 40 IBM at 65
+ ... follows:
IBM Stock Price Probability Profit or
When Option Expires Loss
70 10% +$700
65 20% +$200
63 40% 0
Below 60 30% (-$300)
Note: Commissions not included.
Now we are ready to gaze in...
101Option Trading Secrets Section 8 ppt
... for the unexpected.
TRADING TIPS
254
101Option Trading Secrets Section 9 potx
... mathematical advantage.
TRADING TIPS
262
Secret
92
HOW TO USE
OPTION
ADVISORY
SERVICES
Having written an option advisory newsletter as early as
1973, I have found the secrets of how to use and ... well defined game plan of each
position you enter, written down in black and white (See Secrets
#29 and #66 ), and an overall game plan or strategic plan. This
plan, for example, would map ou...
101Option Trading Secrets Section 10 ppsx
... Busch Companies
(BUD) on September 26, 2002:
Buy BUD Jan 60 call at .6
Sell BUD Nov 55 call at .9
Stock price = 52.2 Spread Credit of .30
Stop at 56. 1. Value of Jan 60 call is .20 at November
expiration
Total ... CONCLUSION
These 101 secrets are the trading tactics, strategies and in-
sights that I have discovered work in the real world! If you use
some of these secrets as you devel...
101Option Trading Secrets Section 11 potx
... what this section is all about, teach-
ing you the basics of option trading. (The good stuff comes later.)
Let’s begin.
Throughout the tutorial, we will use stocks to explain option
trading, but ... all.
Also, if there are eight months left in that IBM Jul 60 call, its
price may be so high that it will lack the necessary liquidity to be
an effective trading vehicle. In fact, options th...
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