The option trader s guide to probability volatility and timing phần 7 ppsx

The option trader s guide to probability volatility and timing phần 7 ppsx

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...
Ngày tải lên : 09/08/2014, 16:21
  • 29
  • 313
  • 0
The option trader s guide to probability volatility and timing phần 4 ppsx

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...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 314
  • 0
The option trader s guide to probability volatility and timing phần 7 ppt

The option trader s guide to probability volatility and timing phần 7 ppt

... as Trea- sury bills and notes. This increases bank reserves, which increases the money supply and causes short-term interest rates to decrease. Reduced rates induce consumers and businesses to ... decreases. When there are less bank reserves, short-term interest rates increase. This means consumers and businesses have to pay the bank more in order to borrow money. Less bor...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 301
  • 0
The option trader s guide to probability volatility and timing phần 10 docx

The option trader s guide to probability volatility and timing phần 10 docx

... Those who succeed consistently in the long run are those who make the effort and take the time to learn the skills re- quired to achieve lasting success. They apply these lessons in the real world, ... 159–162 and calendar spreads, 175 – 177 considerations in selecting option- trading strategies, 72 74 current implied volatility and relative volatility rank, 72...
Ngày tải lên : 09/08/2014, 16:20
  • 25
  • 403
  • 0
The option trader s guide to probability volatility and timing phần 1 pot

The option trader s guide to probability volatility and timing phần 1 pot

... rewards. Stories about the large sums of money to be made and the successes of the rich and famous inspire a desire to achieve the same level of financial success. Just as it is a business s objective ... 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 withi...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 322
  • 0
The option trader s guide to probability volatility and timing phần 2 potx

The option trader s guide to probability volatility and timing phần 2 potx

... increased, sell (to close) the option at a profit. Hence, 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 ... dates and cycles are important to understand. They set the terms of the contract and spell the duration of the option holder s rights and of the opt...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 293
  • 0
The option trader s guide to probability volatility and timing phần 3 potx

The option trader s guide to probability volatility and timing phần 3 potx

... 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 loss is offset by the ... short strike: The short call is assigned and exercised by the option holder. You can then use the 100 shares from the original long stock position to satisfy your oblig...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 371
  • 0
The option trader s guide to probability volatility and timing phần 5 ppt

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...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 412
  • 0
The option trader s guide to probability volatility and timing phần 6 docx

The option trader s guide to probability volatility and timing phần 6 docx

... calls to the upside and the short shares to the downside). Re- member, as long as you use long options—puts or calls—it is a long synthetic straddle. I prefer to use ATM options because they have ... decisions. As in any profession, there are top-notch pro- fessionals as well as others who have missed their calling and should not be offering their services. The best advice I...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 278
  • 0
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?...
Ngày tải lên : 09/08/2014, 16:20
  • 60
  • 320
  • 0

Xem thêm