The Options Course High Profit & Low Stress Trading Methods Second Edition phần 10 pptx

... 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

... 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 ... positions. The number of options to be sold depends on the overall position delta in relation to the deltas of the specific options. All options are pro- vided a d...

Ngày tải lên: 14/08/2014, 05:21

... compares to the average over the past 10 days and the average price over the past 30 days. When the 10- day average goes below the 30-day average, you sell; and, conversely, when the 10- day average ... report is a comprehensive look at the fi- nancial dealings of the firm throughout the year. The difference between the 10- K and the annual report is that the 1...

Ngày tải lên: 14/08/2014, 05:21

... strategies, 108 , 124 margin, 108 109 market opportunity, 108 109 , 515 mechanics of, 107 overview of, 106 109 , 511, 515 risk graph, 110 111 risk /profit profile, 106 , 108 109 , 124, 128, 515 strategy ... are measured low to low, high to high, or low to high. Various types of measure- ments are possible. daily range The difference between the high and low price of a...

Ngày tải lên: 14/08/2014, 16:20

... 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 ... After that, the LEAPS status and special symbol are removed and the options begin trading like regular short-term options. In sum, the terms of the options contr...

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 asse...

Ngày tải lên: 14/08/2014, 05:21

... 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 relation to the change in the ... strike: Let the op- tions expire worthless to make the maximum profit (the initial credit received). • The underlying stock falls below the breakeven, but not as lo...

Ngày tải lên: 14/08/2014, 05:21

... 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 ... prices, which 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....

Ngày tải lên: 14/08/2014, 05:21

... 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 -the- money). You will then ... organization introduced the trading universe to standardized options contracts. The 352 THE OPTIONS COURSE ccc_fontanills_ch13_347-370.qxd 12/17/04 4:23 PM Page 352 the...

Ngày tải lên: 14/08/2014, 05:21