The options course high profit and low stress trading methods phần 5 pdf

... sell a higher strike put and buy a greater number 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 ... going to sell the 60 put and buy a greater number of 55 puts. If the market crashes, I’ll lose money to the 55 point; but below 55 I’ll be making more on the 55 put...

Ngày tải lên: 14/08/2014, 09:21

... on the weather (oil, soybeans, wheat, etc.). See how they are reacting to seasonal factors. The tougher the winter, the higher the price of heating oil. The longer the drought, the higher the ... and the number of advances, the upward movements in the prices of the individual invest- ments, outpace the declines. The volume of trading and the number of adv...

Ngày tải lên: 14/08/2014, 09:21

... victory. Remem- ber, patience and persistence are the keys to trading options successfully. Options Trading: A Primer 15 ccc_fontanills_ch1 _5- 15. qxd 12/17/04 3 :54 PM Page 15 on 12 industrial stocks. ... track the performance of the DJIA to the S&P 50 0 you will find that they are highly correlated (prices move very similarly). While the Dow Jones Industrial Averag...

Ngày tải lên: 14/08/2014, 09:21

... Price 51 0 152 0 253 0 354 0 455 055 60 65 1 05 110 1 15 120 1 25 130 1 35 140 1 45 150 155 160 1 65 Symbol N O P Q R S T U V W X Y Z Strike Price 70 75 80 85 90 95 100 7 .50 12 .50 17 .50 22 .50 27 .50 32 .50 170 1 75 ... The breakeven is calculated by adding the call pre- mium to the strike price. In this example, the breakeven is 55 (50 + 5 = 55 ), which means the...

Ngày tải lên: 14/08/2014, 09:21

... September 50 Put @ .50 . The difference between the long 55 put premium of 2 ($200) and the credit received for the short 50 put ( .50 or $50 ) is a net debit of $ 150 . The net debit is the maximum risk ... September 55 Call @ 1 .50 . The dif- ference between the premium for the long 50 call and the credit received from the short 55 call leaves a net debit of...

Ngày tải lên: 14/08/2014, 09:21

... 55 : 50 + (2 .50 + 2 .50 ) = 55 . The downside breakeven occurs when the underlying asset’s price equals the strike price minus the total premium. In this case, the downside breakeven equals 45: 50 ... When the strike price of the option is close or at -the- money, the delta of the option will be around 50 for long call options and 50 for long put options. In the...

Ngày tải lên: 14/08/2014, 09:21

... COURSE 60,000 54 ,000 48,000 42,000 36,000 30,000 24,000 18,000 12,000 6,000 0 –6,000 –12,000 –18,000 Profit/ Loss by Change in NT Common Price 19 .50 28 .50 37 .50 46 .50 55 .50 64 .50 73 .50 82 .50 91 .50 100 .50 109 .50 118 .50 127 .50 136 .50 1 45. 50 FIGURE 11.2 Original NT Risk ... profits and pursue further appreciation in the stock, we would sell the 50 put and buy back...

Ngày tải lên: 14/08/2014, 09:21

... either—but there are market makers. Their role is to bid and offer certain shares they specialize in, thereby creating liquidity. They make their money on the spread the difference between the ... 4:23 PM Page 355 keeps the exchanges on their toes. Exchanges sell memberships on the exchange floor to brokerage firms and specialists. They must be able to re- act to the demands of...

Ngày tải lên: 14/08/2014, 09:21

... I 51 0 15 20 253 0 35 40 45 1 05 110 1 15 120 1 25 130 1 35 140 1 45 JK L MNO P QR 50 55 60 65 70 75 80 85 90 150 155 160 1 65 170 1 75 180 1 85 190 ST U V W X Y Z 95 100 7 .50 12 .50 17 .50 22 .50 27 .50 32 .50 1 95 ... Short At -the- Money +50 50 50 +50 In -the- Money 1 Strike +60 to + 65 –60 to – 65 –60 to – 65 +60 to + 65 2 Strikes +70 to + 75 –70 to – 75 –70...

Ngày tải lên: 14/08/2014, 09:21

... 253 – 254 , 262, 52 3 case study, 253 – 254 defined, 472 example of, 366 exit strategy, 255 , 262 market opportunity, 253 – 254 , 52 3 mechanics of, 251 – 253 overview of, 249– 251 , 51 2, 52 3 risk graph, 254 risk/profit ... level. Glossary 55 5 ccc_fontanills_glos _53 3 -55 6.qxd 12/17/04 4: 45 PM Page 55 5 52 6 THE OPTIONS COURSE Diagonal Spread Strategy: Sell a short-term o...

Ngày tải lên: 14/08/2014, 09:21