The options course high profit and low stress trading methods phần 6 pptx

... looking at the newspaper at the end of the night. Let’s say XYZ shares are trading at $48 and the 50 puts are $3.25. There is a $0.75 differ- ence between the price of the puts and the price of the ... with the stock trading for $50, the strategist is able to buy the put and sell the call at the same price. The cost of the trade is therefore zero becaus...

Ngày tải lên: 14/08/2014, 09:21

... assigned and exercised. You can then exercise the long call, thereby purchasing the underlying stock at the lower strike price and delivering those shares to the option holder at the higher short ... price. 1 26 THE OPTIONS COURSE ccc_fontanills_ch4_ 76- 129.qxd 12/17/04 4:03 PM Page 1 26 the debit (3.05) from the difference in strike prices (50 – 40 = 10). Thus, th...

Ngày tải lên: 14/08/2014, 09:21

... Weeks Hi/Lo: High and Low Prices for the Past 52 Weeks. Impor- tant: This figure tells you the price change of a stock over the past year. The difference between the high and low is called the range. ... the price of oil, and the pound’s exchange rate against the dollar in the ten years following 1994. The economists said the garbagemen and company bosse...

Ngày tải lên: 14/08/2014, 09:21

... the open and 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 ... 355, 4 96 National Futures Association (NFA), 348 Near-term options, 101 Near -the- money call option, 2 86 Negative delta, 166 – 167 , 188, 318 Net credit,...

Ngày tải lên: 14/08/2014, 09:21

... George. The options course : high profit & low stress trading methods / George A. Fontanills.—2nd ed. p. cm. Includes index. ISBN 0-471 -66 851 -6 (cloth) 1. Options (Finance) I. Title. HG6024.A3F 66 ... an options position. The first step in taking your options trading to another level is to un- derstand and comprehend the interrelation of direction, durati...

Ngày tải lên: 14/08/2014, 09:21

... down the middle. On the left side we have calls and on the right we see puts. On the left side of the table, each row lists a call option contract for MSFT, and on the right 58 THE OPTIONS COURSE ccc_fontanills_ch3_42-75.qxd ... accident the total damage must exceed $500 before the insur- ance company will pay for the remainder of the damages. The prices of OTM...

Ngày tải lên: 14/08/2014, 09:21

... –1,000 deltas, and so on. On the other hand, the typical option has a 168 THE OPTIONS COURSE ccc_fontanills_ch6_ 164 -174.qxd 12/17/04 4:09 PM Page 168 Exiting the Position The following exit strategies ... example, if the IV is too high given the underlying asset’s future volatility, the options may be overpriced and worth selling. On the other hand, if IV is...

Ngày tải lên: 14/08/2014, 09:21

... refer to the middle strike 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.qxd ... 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 st...

Ngày tải lên: 14/08/2014, 09:21

... remind them of their “duty of best execution.” If that doesn’t work, change brokers. 3 46 THE OPTIONS COURSE ccc_fontanills_ch12_330-3 46. qxd 12/17/04 4:22 PM Page 3 46 the trader to create a trading ... of their commissions. There are no special- ists, either—but there are market makers. Their role is to bid and offer certain shares they specialize in, thereby creating liquidi...

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