The Options Course High Profit & Low Stress Trading Methods Second Edition phần 6 pptx

... 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...

Ngày tải lên: 14/08/2014, 05:21

... in- dex trading. For example, February 12, 2004, 508,743 put options and 9 16, 360 calls traded on the CBOE. So the put-to-call ratio was . 56 (or 508,743/9 16, 360 ). The same analysis is repeated for the ... stocks will reprice themselves to reflect the higher rates. These higher rates dampen both busi- ness and consumer spending due to the fact that borrowing costs are now h...

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... 4 46 IBM, 18, 29, 35, 43–44, 51, 53, 58, 60 , 65 66 , 73, 168 , 265 – 266 , 274–275, 279–280, 377 Illiquid markets, 39 Implied volatility (IV): charting, 462 – 464 defined, 473 implications of, 40, 96 97, ... markets, 266 – 267 , 2 76, 301, 303, 307 trade process, 369 vertical spreads, 131 At -the- opening order, 362 Autonomy, 8 ccc_fontanills_indx_557-5 76. qxd 12/17/04 4: 46 PM Page 5...

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... dividend will lower the value of a call option. In addition, the larger the dividend, the lower the price of the corresponding call options. Therefore, stocks with high dividends will have low call ... 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. The num- bers...

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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... trade. The loss is partially mitigated by the initial credit received on the trade. 162 THE OPTIONS COURSE ccc_fontanills_ch5_130- 163 .qxd 12/17/04 4:07 PM Page 162 Delta The concept of the option’s ... 50. Out-of -the- money op- tions have smaller deltas and they decrease the farther out-of -the- money you go. In -the- money options have greater deltas and they increa...

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... are gener- ally at -the- money, as the body and call the higher and lower strike prices the wings. 266 THE OPTIONS COURSE ccc_fontanills_ch10_ 265 -310.qxd 12/17/04 4: 16 PM Page 266 Ratio Put Spread ... days 265 ccc_fontanills_ch10_ 265 -310.qxd 12/17/04 4: 16 PM Page 265 Exiting the Position • The underlying asset falls below the downside breakeven (66 ): The str...

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... make a mistake on the long and 366 THE OPTIONS COURSE ccc_fontanills_ch13_347-370.qxd 12/17/04 4:23 PM Page 366 However, with the introduction of the new super SOES system these rules have changed ... 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 if the option is deep in -t...

Ngày tải lên: 14/08/2014, 05:21