Stocks (Pros) 1 of 11. February 11, 2015

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Kimberly Owen
5 years ago
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1 Stocks (Pros)! 100% of retail accounts can trade stocks! Overnight margin available! Intraday margin is higher! No permission necessary! Cheapest transac>on! Most liquid! Purest, most specific direc>onal bet! Dividends 1 of 11

2 Stocks (Cons)! Expensive compared to levered products! Low ROC! 50/50 bet - purely direc>onal! Can be hard to borrow! Expensive to hold - Margin Requirement! (High capital requirement) 2 of 11

3 Options (Pros)! Fastest growing financial market place! Top 200 op>ons series are highly liquid! Allows all investors to par>cipate! 50% of retail accounts approved for op>ons! Tier 2 - automa>c approval! Most compe>>ve marketplace (11 exchanges)! Only strategic financial product! Covers every sector 3 of 11

4 Options (Pros Continued)! Various strategies to implement other than pure direc>onal bet! Vola>lity based - >me value! Used to reduce cost basis and enhance return! Provides opportunity to define risk! Lower margin requirements compared to equivalent shares of stocks! Commissions per trade are lowest in the industry 4 of 11

5 Options (Cons)! Complicated products, need depth of knowledge! Unpredictable >me decay! Vola>lity risk, especially around earnings season! Dividend risk! Corporate ac>ons! Early assignment risk! Product risk (understanding the rules for every product) 5 of 11

6 Futures (Pros)! 10% of retail accounts approved to trade futures! 16 to 1 leverage! Largest pool of indexed stock liquidity! Covers unique set of products! Tight market! Pure electronic book! Low transac>on cost 6 of 11! Excellent delta efficiency

7 Futures (Pros Continued)! Exchange recognized pairs! Providing capital relief! 24/5 access! Low margin / Span margin! Different regulatory body! Tax advantage for Index Futures! Offers op>ons as deriva>ves 7 of 11

8 Futures (Cons)! Not fungible - Not a compe>>ve marketplace! Wider bid/ask spreads! Confusing product specs.! Many futures don t have liquid deriva>ves! Only basic spreads are permiaed! Separate permissioning! Requires subject to change without no>ce. 8 of 11

9 FX (Pros)! 4% of retail accounts approved to trade FX! 50 to 1 leverage available! Trade 24/5! Deep liquidity! Commission free! Access to currency markets! Only currency pairs driven market! Very low capital required! Global exposure 9 of 11

10 FX (Cons)! Marginally capitalized business! Brokerage firm is your counterparty! No deriva>ves! All liquidity in top 8 pairs! Each night you have to roll your posi>on! Put up segregated funds! Absolutely not fungible 10 of 11

11 Product Pros and Cons DISCLAIMER: The purpose of this material is to demonstrate market trading techniques and strategies designed to give you the skills and confidence to manage your own investments. The risk of loss in trading securi>es, op>ons, futures and forex can be substan>al. You must consider all relevant risk factors, including your own personal financial situa>on, before trading. Op>ons involve risk and are not suitable for all investors. You are assuming the en>re risk of any and all trades placed in the stock market. Due to the >me- cri>cal nature of trading, the varying fees charged by brokerages, and the ac>vity of other market par>cipants, we cannot guarantee that similar trades you place will mirror the exact performance of our poriolio. dough, Inc. is the copyright and trademark holder of all tastytrade branded proper>es. dough is not a licensed financial advisor, registered investment advisor, registered broker- dealer or FINRA SIPC NFA- member firm. dough does not provide investment or financial advice or make investment recommenda>ons. dough is not in the business of transac>ng trades, nor does dough agree to direct your commodity accounts or give trading advice tailored to your par>cular situa>on. Nothing contained in our poriolio demonstra>on cons>tutes a solicita>on, recommenda>on, promo>on, or endorsement of any par>cular security, other investment product, transac>on or investment. BY USING THE TASTYTRADE WEB SITE AND ACCESSING THE TASTYTRADE MATERIALS, YOU AGREE, AT ALL TIMES, TO INDEMNIFY, DEFEND, AND HOLD DOUGH (INCLUDING ANY OF ITS AFFILIATES, OR ITS RESPECTIVE SUCCESSORS AND ASSIGNS, OR ANY OF ITS RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES, LICENSORS, OPERATIONAL SERVICE PROVIDERS, ADVERTISERS, OR SUPPLIERS) HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, ACTIONS, DEMANDS, SUITS, LOSSES AND COSTS (INCLUDING ATTORNEYS FEES) RESULTING FROM TRADES YOU PLACE IN THE MARKET. DOUGH SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE, OF ANY KIND, DIRECT OR INDIRECT, IN CONNECTION WITH OR ARISING FROM USE OF EDUCATIONAL SERVICES PROVIDED AS PART OF THIS PORTFOLIO DEMONSTRATION dough, Inc. All rights reserved. Terms of use apply. Reproduc>on, adap>on, distribu>on, public display, or exhibi>on for profit in whole or in part without dough s express wriaen permission is prohibited under penalty of law. February 10, 2015

Delta. March 6, of 16

Delta. March 6, of 16 Δ 1 of 16 As one of the four primary op9on Greeks, delta is perhaps the most important as it can tell us four essen9al pieces of informa9on. 2 of 16 The four important figures told by delta are: 1. The