The option trader s guide to probability volatility and timing phần 9 pot

... volatility levels. More free books @ www.BingEbook.com the stock rallied above 35 and the option was exercised against us. On the downside, we entered a stop-loss to sell the stock at 29. A drop in this price would ... continues to rise as the stock price advances. If the stock were to rally to 43. 69, the writer of 8 covered calls would have a profit of $5020, a...

Ngày tải lên: 09/08/2014, 16:21

... 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

... 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 ... Never- theless, expiration dates and cycles are important to understand. They set the terms of the contract and spell the duration of the option holder s...

Ngày tải lên: 09/08/2014, 16:20

... 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...

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

... strike price of 55. The stock rises to 65 and the trader decides she wants to own the stock. To make this happen she would call her broker and say that she wants to exercise this particular option. ... had bought a call and a put at the time of each signal. 104 The Option Trader s Guide 95 98 83 59 712 0 5881 4642 3403 2164 99 0127 99 0326 99 0527 99 07...

Ngày tải lên: 09/08/2014, 16:21

... 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, ... Articles related to trading Stock and Stock Index Option Symbols Table B.6 lists all the available options for America Online (symbol: AOL) as of December 28, 2000. Due...

Ngày tải lên: 09/08/2014, 16:20

... options traders should combine the values of the Greeks used to create the optimal options spread. The result will allow the trader to more accurately assess the risks of any given options spread. Understanding ... important to them than the volatility of the options (implied volatility) and the volatility of the underlying stock (statistical or historical...

Ngày tải lên: 09/08/2014, 16:20

... 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

... 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