The options course high profit and low stress trading methods phần 9 pptx

... the price of oil, and the pound’s exchange rate against the dollar in the ten years following 199 4. The economists said the garbagemen and company bosses tied for first with the predictions. The ... per share growth and stability and the EPS growth the last two quarters. The resulting number is compared to other companies in the table and given a rank of 1 (...

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 ... 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 OPTIONS...

Ngày tải lên: 14/08/2014, 09:21

... 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 because the shares are already held in the portfolio ... considerable move lower and is trading below the put strike price at expiration, exercise the put option and sell the stock at the strike price. If it make...

Ngày tải lên: 14/08/2014, 09:21

... 298 – 299 Long call: breakeven, 91 94 , 1 19 120, 514 case study, 92 94 exit strategies, 91 92 , 120 long stock compared with, 94 margin, 92 , 94 , 120 market opportunity, 92 , 94 , 514 mechanics of, 90 91 overview ... 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 “...

Ngày tải lên: 14/08/2014, 09:21

... an options position. The first step in taking your options trading to another level is to un- derstand and comprehend the interrelation of direction, duration, and magnitude. Additionally, the ... profit, the options trader must be correct in all three of these categories. This is the primary reason that many people lose money when trading options. They do not accuratel...

Ngày tải lên: 14/08/2014, 09:21

... 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 contract such as the unit of trading, ... accident the total damage must exceed $500 before the insur- ance company will pay for the remainder of the damages. The prices of OTM options are low, and get...

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 to...

Ngày tải lên: 14/08/2014, 09:21

... Page 2 49 the delta of the options purchased will become greater than the delta of the options sold. In other words, the further an option is in -the- money, the more it acts like a stock. The risk ... spread. Sometimes, traders 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 wi...

Ngày tải lên: 14/08/2014, 09:21

... 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 liquidity. They make their ... wider the bid-ask spread will be. If the market is pretty quiet that day, the bid-ask spread will be smaller. The bid-ask will be smaller for the at -the- money (ATM) options and...

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