The options course high profit and low stress trading methods phần 10 pptx

... 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 ... put: breakeven, 108 109 , 124, 515 case study, 109 – 110 delta neutral trades, 166 exit strategies, 108 , 124 margin, 108 109 market opportunity, 108 109...

Ngày tải lên: 14/08/2014, 09:21

... 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 COURSE TABLE 5.1 Vertical Spread ... 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...

Ngày tải lên: 14/08/2014, 09:21

... 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

... 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

... 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

... 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 too low given the outlook for the underlying ... 4. Theta and gamma increase as you get close to expiration, and they’re greatest for at -the- money options. This means the stakes grow if you’re short at -the- m...

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 ... Page 249 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...

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

... look at the price of gold trading right now and how that price 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 ... 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...

Ngày tải lên: 14/08/2014, 09:21