option strategies for swing trading

Ngày tải lên: 26/03/2015, 10:21

... What Is Swing Trading? 10 The differences between swing trading and buy-and-hold investing 11 The differences between swing trading and day trading 12 What Swing Trading Is ... choosing potential opportunities 2 Swing Trading For Dummies About This Book In Swing Trading For Dummies, I introduce you to the strategies and techniques of the swing trader Moreover, I cover topics ... rules of the swing trading game, the steps you can take to get ready to play, and some recommended strategies for growing your portfolio into a swing trading success story Chapter Swing Trading from...

Ngày tải lên: 27/03/2014, 01:33

Ngày tải lên: 23/04/2014, 16:18

... economic forces that drive each of these markets individually—a formidable' task that is probably impossible It is mainly for this reason that technical analysis is the preferred vehicle for intermarket ... Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons, Inc This publication is designed to provide accurate and authoritative information ... Cataloging-in-Publication Data Commodity Indexes Murphy, John J Intermarket technical analysis: trading strategies for the global stock, bond, commodity, and currency markets / John J Murphy p cm — (Wiley...

Ngày tải lên: 20/06/2014, 20:20

... bullish for stocks A falling dollar has the exact opposite effect; it is bullish for commodities and bearish for bonds and equities Why, then, can't we say that a rising dollar is bullish for bonds ... the dollar formed an intermediate bottom and started to rally Bonds were stable but locked in a trading range Figure 5.3 shows that the eventual upside breakout in bonds was delayed for another ... First, a rising dollar is bearish for the CRB Index, and a falling dollar is bullish for the CRB Index The second important point is that turns in the dollar occur before turns in the CRB Index 64...

Ngày tải lên: 20/06/2014, 20:20

... always bullish for stocks, and a falling dollar is always bearish for equities Figure 6.11 compares the dollar to the Dow Industrials from 1985 through the third quarter of 1989 For the first ... T-BILL PRICES ARE USUALLY SUPPORTIVE FOR THE DOLLAR SINCE THEY SIGNAL HIGHER SHORTTERM RATES (MOST OF 1988) RISING T-BILL PRICES (1989) ARE USUALLY BEARISH FOR THE DOLLAR (SIGNALING LOWER SHORT-TERM ... IT'S TRUE THAT A FALLING DOLLAR WILL EVENTUALLY PROVE BEARISH FOR STOCKS, A RISING STOCK MARKET CAN COEXIST WITH A FALLING DOLLAR FOR LONG PERIODS OF TIME (1985 TO 1987) BOTH ROSE DURING 1988...

Ngày tải lên: 20/06/2014, 20:20

... monthly for the preceding month (I'm referring in this discussion to the CPI-W, which is the Consumer Price Index for Urban Wage Earners and Clerical Workers.) The CRB Index measures the current trading ... CHANGE FOR THE CONSUMER PRICE INDEX (CPI-W) AND THE PRODUCER PRICE INDEX (PPI) FROM 1971 TO 1987 (SOURCE: CRB INDEX WHITE PAPER: AN INVESTIGATION INTO NON-TRADITIONAL TRADING APPLICATIONS FOR CRB ... Peaked a Month Before the U.S in 1987 while Japan Didn't Peak Until October markets that didn't have program trading at the time? Clearly, there were and are much larger economic forces at work...

Ngày tải lên: 20/06/2014, 20:20

... interest-sensitive sector before it hit the general market The bond market therefore became a leading indicator for the interest-sensitive stocks which, in turn, became a leading indicator for the stock market ... (BOTTOM LINE) INTERMARKET ANALYSIS CAN BE PERFORMED ON A GLOBAL SCALE (CHART COURTESY OF PRING MARKET REVIEW, PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR ECONOMIC RESEARCH, P.O BOX 329, WASHINGTON, ... inflation concerns, the British inflation rate for 1989 was 7.8 percent, up from 4.9 percent the previous year, while the Japanese wholesale inflation rate for 1989 showed its first advance in years...

Ngày tải lên: 20/06/2014, 20:20

... rates higher and bond prices lower, which is bearish for the utilities Downtrending commodity markets will be bullish for bonds and eventually for utilities as well and that both bonds and utilities ... performance In this section the individual markets will be ranked by relative performance over two time periods to see which ones qualify as the best buying or selling candidates The reason for ... (95.97) Oilseeds (95.54) Grains (95.39) Before even looking at a chart, some useful information is available It is known that, during the previous 100 trading days, the energy and precious metal...

Ngày tải lên: 20/06/2014, 20:20

... futures offer a basket approach to trading general trends in the stock market Foreign currency futures and the U.S.-Dollar Index provide vehicles for participation in foreign exchange trends All four ... is inflation It follows, therefore, that a period of accelerating inflation (rising commodity prices) is usually bearish for bonds and will, in time, be bearish for stocks Declining inflation ... markets Futures traders, therefore, have a lot to choose from In many ways, the futures markets provide an excellent asset allocation forum Futures traders can easily swing money among the four...

Ngày tải lên: 20/06/2014, 20:20

... "program trading" takes on a life of its own and is treated as an independent, market-moving force A reader could be forgiven for wondering what moved the stock market on a day-to-day basis before ... "program trading" captured the imagination of the financial media A reader could also be forgiven for starting to believe the printed reports that "program trading" really is the dominant force ... chapter, the myth of "program trading" as a market-moving force will be explored An attempt will be made to demonstrate that market forces that are usually blamed on "program trading" are nothing more...

Ngày tải lên: 20/06/2014, 20:20

... because each option is for 100 shares, a price of 4.375 for an option on a stock means the total price for the option is 100 times the cost-per-share of the option, or $437.50 Quotations for options ... each for them Only holders of options can exercise They may so from any time after purchase of the option through to a specified time on the last trading day if it is an American option For example, ... single charge for each option For example, a broker could charge $100 for executing a gold option trade The other common method is to charge a percentage of the value of the premium For example,...

Ngày tải lên: 20/06/2014, 20:20

... in foreign interest rates This is only used in foreign exchange options It has no impact on any other options Foreign exchange options are affected by phi because options are priced on the forward ... forest Option pricing models allow the trader to deal with the complexity of options rather than be overwhelmed Option pricing models provide a framework for analysis of specific options and option ... underlying instrument for each option For example, a hedge ratio of 0.50 means that one half of the value of one option is needed to hedge the option In the case of a stock option, a hedge ratio...

Ngày tải lên: 20/06/2014, 20:20

... For example, assume that you are willing to lose $2,000 on this particular trade Further assume that the at-the-money options are trading for $4 and the out-of-the-money options are trading for ... divided by the initial investment The formula is: Return = (Profit or loss) ÷ initial investment For example, if you buy an IBM option for and sell it for 71 /2 , for a profit of 21 /2 , your return ... those strategies that fit that outlook As you can see, the first six strategies are for when you are looking for higher prices in the future You then look at the second column Here, the first three strategies...

Ngày tải lên: 20/06/2014, 20:20

... For example, assume that you are willing to lose $2,000 on this particular trade Further assume that the at-the-money options are trading for $4 and the out-of-the-money options are trading for ... in-the-money option expiring worthless are less than for an out-of-the-money option You will be better off buying a slightly in-the-money option or an at-the-money option if you are looking for a quick ... divided by the initial investment The formula is: Return = (Profit or loss) ÷ initial investment For example, if you buy an IBM put option for and sell it for 71 /2 , for a profit of 21 /2 , your return...

Ngày tải lên: 20/06/2014, 20:20

... outof-the-money options is greater than the at-the-money options You can sell the out-of-the-money options and buy the at-the-money options, expecting the volatility skew to go away or to be reduced For ... short puts For example, if you short one UI and two puts, you have, for margin purposes, one covered put write and one naked short put Break-Even Point The formulas for the two break-evens for a ratio ... potential profit than with other option strategies Be sure to consider the cost of commissions before selecting a bull spread over other bullish strategies and before selecting the strike price...

Ngày tải lên: 20/06/2014, 20:20

... potential profit than with other option strategies Be sure to consider the cost of commissions before selecting a bear spread over other bearish strategies and before selecting the strike price ... by: r Selling one low-strike option r Buying two medium-strike options r Selling one high-strike option 209 JWBK147-Smith May 8, 2008 10:17 Char Count= 210 OPTION STRATEGIES 60 59 58 57 56 55 ... Assume that Monsanto is trading at 693 /4 , and you want to trade the January c17 JWBK147-Smith May 8, 2008 10:17 212 Char Count= OPTION STRATEGIES options The 65 strike is trading at 61 /4 , the...

Ngày tải lên: 20/06/2014, 20:20

... bullish for stocks A falling dollar has the exact opposite effect; it is bullish for commodities and bearish for bonds and equities Why, then, can't we say that a rising dollar is bullish for bonds ... the dollar formed an intermediate bottom and started to rally Bonds were stable but locked in a trading range Figure 5.3 shows that the eventual upside breakout in bonds was delayed for another ... First, a rising dollar is bearish for the CRB Index, and a falling dollar is bullish for the CRB Index The second important point is that turns in the dollar occur before turns in the CRB Index 64...

Ngày tải lên: 20/06/2014, 23:20

... always bullish for stocks, and a falling dollar is always bearish for equities Figure 6.11 compares the dollar to the Dow Industrials from 1985 through the third quarter of 1989 For the first ... T-BILL PRICES ARE USUALLY SUPPORTIVE FOR THE DOLLAR SINCE THEY SIGNAL HIGHER SHORTTERM RATES (MOST OF 1988) RISING T-BILL PRICES (1989) ARE USUALLY BEARISH FOR THE DOLLAR (SIGNALING LOWER SHORT-TERM ... IT'S TRUE THAT A FALLING DOLLAR WILL EVENTUALLY PROVE BEARISH FOR STOCKS, A RISING STOCK MARKET CAN COEXIST WITH A FALLING DOLLAR FOR LONG PERIODS OF TIME (1985 TO 1987) BOTH ROSE DURING 1988...

Ngày tải lên: 20/06/2014, 23:20

... interest-sensitive sector before it hit the general market The bond market therefore became a leading indicator for the interest-sensitive stocks which, in turn, became a leading indicator for the stock market ... (BOTTOM LINE) INTERMARKET ANALYSIS CAN BE PERFORMED ON A GLOBAL SCALE (CHART COURTESY OF PRING MARKET REVIEW, PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR ECONOMIC RESEARCH, P.O BOX 329, WASHINGTON, ... inflation concerns, the British inflation rate for 1989 was 7.8 percent, up from 4.9 percent the previous year, while the Japanese wholesale inflation rate for 1989 showed its first advance in years...

Ngày tải lên: 20/06/2014, 23:20