The Options Course High Profit & Low Stress Trading Methods Second Edition phần 3 potx

... Of course, if the Qs had lost ground, we would have lost a dollar per share for each point the Qs fell. 84 THE OPTIONS COURSE Profit –800 –600 –400 20 0 0 20 0 400 600 800 20 22 24 26 28 30 32 ... close of business on the third Friday of the month because that is 62 THE OPTIONS COURSE ccc_fontanills_ch3_ 42- 75.qxd 12/ 17/04 4:01 PM Page 62 after the expiratio...

Ngày tải lên: 14/08/2014, 05:21

... calculate the maximum profit, multiply the difference in the strike prices of the two options by 100 and then subtract the net debit. The maximum profit occurs when the underlying stock rises above the 132 THE ... strike and any expiration. The buyer of put options has limited risk over the life of the option, regardless of the movement of the underlying asset...

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... 38% 170 THE OPTIONS COURSE ccc_fontanills_ch6_1 64- 1 74. qxd 12/17/ 04 4:09 PM Page 170 Exiting the Position The following exit strategies can be applied for the short straddle example: ã XYZ falls below ... 5 = 60). The down- side breakeven occurs when the underlying asset equals the put strike price minus the net debit. The downside breakeven equals 40 : (45 – 5 =...

Ngày tải lên: 14/08/2014, 05:21

... money to the 55 point; but below 55 I’ll be making more on the 55 puts than I lose on the 60 puts because I have more of the 55 puts. This actually happened to me once in the S&P 50 0 futures ... of lower strike puts. The strikes are the same as before: 40, 45, 50 , 55 , and 60. The 60 put is the highest strike and comes with the highest intrinsic value and 40...

Ngày tải lên: 14/08/2014, 05:21

... sell the call at the same price. The cost of the trade is therefore zero because the shares are already held in the portfolio and the cost of the put is offset by the sale of the call. The risk ... it from the lower sold strike for the lower breakeven. The upper breakeven is found by adding the $2 credit to the higher sold option strike. Notice how the risk g...

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... organization introduced the trading universe to standardized options contracts. The 352 THE OPTIONS COURSE ccc_fontanills_ch13_3 47- 370 .qxd 12/ 17/ 04 4:23 PM Page 352 the Federal Reserve? The answer is to satisfy their ... to either buying the stock and selling the call or selling the stock and selling the put if there was no time value in the option (typically...

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... another, the contrary thinker will act in a manner opposite to the crowd. For example, at the apex of panic selling during the global financial crisis of 19 98, the contrary 424 THE OPTIONS COURSE ccc_fontanills_ch17_415-452.qxd ... example: IBM 10000.00 88 + .50 The stock symbol is IBM, which last traded 10,000 shares at $88 each, up $.50 from yesterday. If you see only th...

Ngày tải lên: 14/08/2014, 05:21

... option traders. Since the length of each bar in an OHLC chart is determined by the high and low prices of the day, short bars suggest that the stock is 458 THE OPTIONS COURSE 2003 2004 30 29 28 27 26 25 24 Microsoft ... Page 458 exhibiting low volatility. In that case, the trading ranges between the daily high and low prices are small. On the other hand, whe...

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... close for the period and “shadows” which extend above and below the body to the high and low prices for the period. When the “body” of the candlestick is dark (or red in color charts), the closing ... time. bid and asked The bid (the highest price a buyer is prepared to pay for a trading asset) and the asked (the lowest price acceptable to a prospective seller of th...

Ngày tải lên: 14/08/2014, 05:21