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...

Ngày tải lên: 09/08/2014, 16:21

... 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

... Reduced rates induce consumers and businesses to borrow. Consumers will bor- row money for items such as automobiles or homes. Businesses borrow to build their inventories or finance new factories. As a ... day traders again. You cannot display your own bids and offers through SOES, and the old SOES system still exists for small- cap stocks. The other ordering system worthy of a...

Ngày tải lên: 09/08/2014, 16:20

... 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

... predefined loss because the first loss is always the best. On the other hand, discipline gives you the impenetrable strength to keep holding on to an options position when success is at hand or passing ... Tech, Networks, E-Business, and Sciences and Medicine. The site also has links to their magazine. Investor s Business Daily www.investors.com IBD s site has incorporated...

Ngày tải lên: 09/08/2014, 16:20

... option strategies are best for any given situation, and they fail to understand just what the risk is before they make their trades. Jay Kaeppel explains these issues in The Option Trader s Guide to ... becoming a successful trader. He explains the different strategies available and when to use each one. He shows how to accurately assess volatility and from ther...

Ngày tải lên: 09/08/2014, 16:21

... 50 is considered in the money as long as the price of the stock is greater than 50. A put option with a strike price of 50 is considered in the money as long as the price of the stock is less than ... back the option (possibly at a loss) if she does not want the stock to get called away Reasons to Trade Options 41 More free books @ www.BingEbook.com Chapter 3 REASONS...

Ngày tải lên: 09/08/2014, 16:21

... stocks and fu- tures markets. As discussed in the strategy chapters, it is often useful to consider one set of strategies for securities that trade at a low volatility rank and another set of strategies ... oppor- tunities to astute traders. Each strategy also entails unique risks, which must be understood and accounted for if you hope to use them successfully. More informatio...

Ngày tải lên: 09/08/2014, 16:21

... 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...

Ngày tải lên: 09/08/2014, 16:20

... 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...

Ngày tải lên: 09/08/2014, 16:20