The Options Course High Profit & Low Stress Trading Methods Second Edition phần 9 docx

... 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, when...

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... market. 192 9 On October 29, 192 9, the rally of the 192 0s ends when the stock market crashes, falling more than 12.8 percent in one day. After the largest stock market rally in history, the market ... 504 508 THE OPTIONS COURSE TABLE B.6 (Continued) Year Key Event 194 5– 197 2 After the end of the war, the stock market rallies to new highs. This rally continues, w...

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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 ... 2.00 3 .90 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...

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... 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 ... long as the stock does not fall below the breakeven, the position will break even or make a small profit. • The stock falls below the breakeven: Let...

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... allows the trader to make large potential profits if the stock moves far enough in either direction. To profitably implement 198 THE OPTIONS COURSE Profit –1,000 0 1,000 2,000 10 15 Today: 190 ... the policy for the Honda. The 18-year-old lives in a state of high volatility! The term vega represents the measurement of the change in the price of the option in relatio...

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... PM Page 251 of the life of the option the closer the expiration date, the faster the theta decay. Therefore, the last day will have the fastest loss of value due to time. Since options lose value ... Page 2 49 9. Make an exit plan before you place the trade. If the stock falls below the maximum profit point, consider closing the position. The position begins losin...

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... 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 ... within a trading range: If the shares fall within the desired range, you will make a profit. The largest profit potential occurs if the shares expire at the ATM s...

Ngày tải lên: 14/08/2014, 05:21