The option trader s guide to probability volatility and timing phần 8 pps
The option trader s guide to probability volatility and timing phần 8 pps
... it seems to me that prayer is truly the method
most often used by traders and investors. Most traders and investors do
very little analysis and have no idea as to what is going on; still they ... ridiculous price multiples due to continued up-
grades by analysts as the stock prices went into the stratosphere? How
many investors still own those stocks today under $10 a share?...
The option trader s guide to probability volatility and timing phần 4 ppsx
... making these kinds of assessments, options traders typically refer to
the following risk measurements: delta, gamma, theta, and vega. These
four elements of options risk are referred to as the option ... important to them than the volatility of the options
(implied volatility) and the volatility of the underlying stock (statistical or
historical volatility) .
Pro...
The option trader s guide to probability volatility and timing phần 10 pps
... levels of the National Association of Securities
Dealers Automated Quotations System (Nasdaq). Level I quotes provide basic in-
formation such as the best bids and asks for Nasdaq-listed stocks. ... that aims to predict
futures and stock price movements based on balance sheets, income statements,
past records of earnings, sales, assets, management, products, and services.
futures...
The option trader s guide to probability volatility and timing phần 7 ppsx
... points. In other words, if Toys “R”
Us falls to 10.04 or rises to 21.33 at any time during the next
three months, this would constitute a statistically significant
move for this stock. As a result, ... in the
implied volatility of the option bought versus that of the option
sold. This underscores the importance of having as wide a spread
as possible between the volatili...
The option trader s guide to probability volatility and timing phần 8 ppt
... rallies sharply. If the stock drops
sharply, your choices are these:
• Sell the stock, buy back the call, and exit the trade com-
pletely to avoid additional losses.
• Hold onto both positions and ... place
to stop themselves out if the stock continues to decline. One
other alternative is to use the amount that you saved by initially
writing the naked put as a stop-l...
The option trader s guide to probability volatility and timing phần 10 docx
... ways to
use, 95–96
delta, 89 –91
profit/loss comparisons,
86 89 , 87 (figs.), 88 (fig.),
88 (tabs.)
strategies for bullish scenario,
82 86 , 83 (figs.), 84 (fig.)
buying 100 shares at 94,
83 84
buying ... call
option at 9 .88 , 84
writing 10 February 75 put
options at 1.375, 85
weighing pros and cons,
81 82
Probability of profit, and break-
even analysis, 8
Profit/l...
The option trader s guide to probability volatility and timing phần 1 pot
... investors a way to buy and sell
shares that represent entire baskets of stocks. In the case of Spiders, the
basket of stocks represents the companies included within the Standard &
Poor s 500 ... stock, futures, and options markets is
to attain financial rewards. Stories about the large sums of money to
be made and the successes of the rich and famous inspire a...
The option trader s guide to probability volatility and timing phần 2 potx
... purchasing a call option has a limited risk because the most you
stand to lose is the premium paid for the option plus commissions paid to
the broker.
52
THE OPTIONS COURSE
ccc_fontanills_ch3_42-75.qxd ... 3.90 4 .80
85 .40 1.60 2 .80
The numbers in the first column are the strike prices of the IBM
calls. The months across the top are the expiration months. Th...
The option trader s guide to probability volatility and timing phần 3 potx
... the short stock
position if you wish.
• The price of the stock rises above the initial stock price, but
stays below the breakeven: The short stock position starts to
lose money, but this loss ... sell
another call to offset your risk.
• The stock falls below the initial stock price but stays above
the breakeven: The long stock position starts to lose money, but
this...
The option trader s guide to probability volatility and timing phần 5 ppt
... that case, the loss is equal to the commissions paid for
the trade. On the other hand, if the stock falls sharply, the losses can be
substantial. The downside breakeven is equal to: higher strike ... Losses begin to develop as the
stock moves below the breakeven and are limited to the stock falling to
zero. In this case, if the stock falls to zero, one short...