Rule One Transformational Investing - Webinar #4
|
|
- Rosalyn Banks
- 6 years ago
- Views:
Transcription
1 Rule One Transformational Investing - Webinar #4
2 Rule #1 Transformational Investing Course 1) Rule #1 Investing through the 4Ms 2) Payback Time and 10 Cap Rate Valuations systems 3) Analysis of a Wonderful Company from A-Z 4) How Options work and how we use them 5) A Rule One Put (ROP) and Rule One Call (ROC) 6) How Technical Indicators work and how we use them 7) Rule #1 Short Term Trading rules and strategies 8) How Credit Spreads work and when we use them 9) Risk Management and managing a trade gone bad 10) RUT Expiration Day BPS System Trade and Money Management 11) Rule One Short Strangle (ROSS) and other Ruler combination trades 12) Lowering Cost Basis and Creating Equity Bonds 13) Review and Q&A from real trading experience
3 Webinar #4 Basic Options Why Rulers use stock options Stock option contract defined Rights and obligations of option contracts Selling PUTS (ROP) and CALLS (ROC)
4 Options: Advantages & Disadvantages Advantages of Options Leveraged returns Flexibility for profits in any type of market Increase the rate of return on your portfolio Minimize capital at risk Generate income on the stocks you own Hedge your portfolio from losses Disadvantages of Options Leveraged losses Limited by time must be right, right now Complicated
5 Options Rule One Style Rule One Investors use options for three reasons: 1) To enter into a long term investment on a Wonderful Company at or near the Green Zone (MOS/PBT price). This is a Rule One Put (ROP). 2) To exit from a long term investment on a Wonderful Company that is in or near the Red Zone (20% above the Sticker Price) This is a Rule One Call (ROC). 3) To make short term trades on any security to produce extra profits each month. This is a Credit Spread. This lesson will just explain the methods of using options for entering and exiting from a long term investment on a Rule One stock (ROP and ROC).
6 Option Basics Every new endeavor has some sort of unique language associated with it. Once you learn that language, your experiences in your new field or area becomes a more enjoyable and successful experience. Options are no different once you learn the basic language, you will find the mechanics and strategies easy to follow.
7 Options Defined Key Terms Option Contract - one contract controls 100 shares of stock (not stock ownership). Options are contracts that are sold and bought at a price called a premium. Option contracts define the right to buy and sell shares at specific prices during a specific period of time. The option contract is NOT the actual shares of the underlying security. Each contract controls 100 shares of the underlying security. Two option contracts would control 200 shares. Five option contracts would control 500 shares.
8 Options Defined Key Terms Stock Option: Buying an option is the RIGHT, but not the obligation, to buy (CALL) or sell (PUT) a specific stock (called the underlying security) at a set price (called the strike price) on or before a specific date (called the expiration date). The buyer pays a premium and gets rights The seller gets paid a premium and has obligations The buyer has the right to exercise the contract to buy (CALL) or sell (PUT) shares. The seller may get assigned the contract and have to buy (PUT) or sell (CALL) shares. An option derives its value from the underlying security. The price (premium) of the option is effected by the price movement of the underlying security and how much time is left in the contract.
9 Insurance Policy Contract Analogy Stock options are much like an insurance policy. The buyer of the policy (the insured) pays a premium and gets certain rights for a certain period of time. The seller of the policy (insurance company) writes the insurance contract and gets paid a premium to be obligated to perform in certain ways under certain conditions.
10 Options Defined Strike Price The strike price is the agreed on price that the stock will be bought and sold at. This is not the current price of the stock but the contractual price the shares must change hands at if the contract is assigned. IF shares change hands, they change hands at this price.
11 Options Defined Key Terms Premium: Every time you buy an option what you are paying is referred to as the premium. Every time you sell an option what you receive is also referred to as the premium. As a trader in options, you are trading the option premium not the underlying security. The two are separate but the price or premium of the option is effected by the underlying security and its price movement. The premium is made up of two aspects: Intrinsic and Extrinsic Value Intrinsic Value + Extrinsic Value Premium Stock Price -Strike Price Intrinsic Value Time Value +Implied Volatility Extrinsic Value
12 Options Defined Key Terms Expiration Date: This is the date and time for which the option contract will cease to trade and then expire. The expiration for stock options occurs on the Saturday following the third Friday of the expiration month. Because the market is closed to trading on Saturday, the last day to get out of an expiring stock option is the third Friday of the expiration month. 12
13 Options Defined Key Terms Bid-Ask Spread: The Bid-Ask spread is the difference between the price at which the option is bought and sold. In this case: $0.30 With a Market Order, the seller gets the BID price and the buyer gets the ASK price. The Spread goes to the Market Maker as a commission. We usually place a Limit Order at the Mark (half way between BID and ASK) to reduce our trading cost. 13
14 Options Chain on TOS
15 Options Chain: OTM, ITM, ATM Out of the Money (OTM) For a CALL - the strike prices that are higher than the underlying security's price. For a PUT option the strike prices that are lower than the underlying security's price. *No Intrinsic Value only Extrinsic Value. In the Money (ITM) For a CALL the strike prices that are lower than the underlying security's price. For a PUT option those strike prices that are higher than the underlying security's price. *Premium has both Intrinsic and Extrinsic Value. ITM OTM OTM ATM At the Money (ATM) The strike price that is nearest the underlying security's present price. ITM
16 Option Contract Buyer vs. Seller The buyer of a CALL has the right but NOT the obligation to BUY the stock at the strike price any time until expiration. The buyer of a PUT has the right but NOT the obligation to SELL the stock at the strike price any time before expiration. The seller of a CALL has the obligation to SELL shares at the strike price if the contract is assigned by the buyer. The seller of a PUT has the obligation to BUY shares of the stock at the strike price if the contract is assigned.
17 Buyer and Seller Can Exit Anytime Both buyer and seller may get out of the option contract at any time during the life of the contract. The buyer Bought to Open (BTO) the option so if they want to get out of the trade, they just Sell To Close (STC). The seller Sold To Open (STO) the option so if they want to exit the trade, the just Buy To Close (BTC). The profit or loss on the trade will be determined by how much the premium of the option contract has changed since the trade was opened.
18 Call and Put Options All option strategies have one or more of the following actions: Buying a Call Selling a Call Buying a Put Selling a Put
19 Selling PUT Options Common Use by Speculators: When traders expect the underlying stock to move up in price or stay the same. Rule #1 Use: To lower our basis on stocks that we would like to own at the price we want to own it. As a default, if the stock is not put to us, to generate cash flow. Maximum Risk: Limited only by the stock going all the way down to $0. Maximum Risk for Rule #1 Investor: Since we only sell PUTS on stocks that we know are Rule One companies, at a large discount to their Sticker Price, it has very low risk. Maximum Reward: The credit received for the trade or the Wonderful Company purchased at our buy price. Time Decay: Works in favor of the seller s trade.
20 Working with Options Chain Demonstration of how to sell a ROP on TOS Let s assume that we seek to acquire shares in CBI at MOS = $22.00 Let s look at June contract and October contract. For each contract month, what is the strike price we need to achieve net acquisition cost of $22 or lower?
21 Selling Call Options When Commonly Used: When traders expect a short-term drop in the price of the underlying stock. Rule #1 Use: To generate cash flow on Rule #1 stocks you own (AKA COVERED CALLS) or to exit an over-priced stock with a nice bonus to the present stock price. Maximum Risk for Speculators: Limited only by the stock going all the way down to $0. Maximum Risk for Rule #1 Investor: If sold in the Red Zone, and called away, none. If sold lower than the Red Zone, opportunity cost on price appreciation of the Rule One stock. Maximum Reward: Credit received for selling the CALL + capital gain from your Cost Basis to the Strike Price. Time Decay: Works for the seller s trade
22 ROP and ROC tactics ROPs are part of our entry tactics into longterm investment on a Wonderful Company. ROCs are part of the exit tactics after the Wonderful Company has doubled its price (normally 3-5 years later). Both ROPs and ROCs can generate cash flow.
23 Trading Terms BTO = Buy to Open STC = Sell to Close STO = Sell to Open BTC = Buy to Close Limit Order vs. Market Order Day Order vs. GTC (Good till Cancelled) Bid, Ask, Spread, Mark Portfolio Margin vs. Standard Margin vs. Cash Settled
24 Option Terms - REVIEWED Option Contact: 1 contract = 100 shares of an underlying security that change hands at the Strike Price IF the contract is assigned. CALL rights and obligations PUT rights and obligations Strike Price Days To Expiration (DTE) Contract Assignment vs. trading the contract to someone else ATM = At The Money ITM = In The Money OTM = Out of The Money Intrinsic Value = Difference between Strike Price and Market Price Extrinsic Value = Time + Implied Volatility
25 Webinar #4 Review Why Rulers use stock options Stock option contract defined Rights and obligations of option contracts Selling PUTS (ROP) Selling CALLS (ROC)
26 HOMEWORK Pick your Just One, Rule One company that is closest to being on sale (MOS or PBT). Go to the ThinkOrSwim (TOS) options chain for that stock (use the Trade tab). Be sure you are in TOS Paper Money. Pick the contract month and PUT strike price that will give you a Cost Basis that is closest to your MOS/PBT if you get put the stock. Make adjustments to your trade (Strike Price and Contract Month) to get the best combination of results for both goals: Cost Basis at or near the MOS/PBT. Sell To Open (STO) the PUT contract in the TOS Paper Money. Send your results to Andy at: andyb@ruleoneinvesting.com
Learn To Trade Stock Options
Learn To Trade Stock Options Written by: Jason Ramus www.daytradingfearless.com Copyright: 2017 Table of contents: WHAT TO EXPECT FROM THIS MANUAL WHAT IS AN OPTION BASICS OF HOW AN OPTION WORKS RECOMMENDED
More informationIntroduction to Options Part I of III: The Basics
Webinar Presentation Introduction to Options Part I of III: The Basics Presented by: Trading Strategy Desk 1 Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. 2016
More informationCOPYRIGHTED MATERIAL. The Foundations of Options Trading PART 1
PART 1 The Foundations of Options Trading COPYRIGHTED MATERIAL 1 2 CHAPTER 1 Option Basics Stock options are members of a large group of varied financial instruments known as derivatives; that is, options
More informationOptions and CANSLIM Investing A BEGINNER'S PERSPECTIVE LAURENCE CHAN FREMONT IBD MEETUP GROUP
Options and CANSLIM Investing A BEGINNER'S PERSPECTIVE LAURENCE CHAN FREMONT IBD MEETUP GROUP Options and CANSLIM Investing A Beginner's Perspective Disclaimer My Background Why Option Trading? Why NOT
More informationRule One Transformational Investing Webinar #13
Rule One Transformational Investing Webinar #13 Webinar #13 Review The Process Finding a Wonderful Company WFM is a company that I use, a company that reflects my values, that will be bigger and better
More informationTrader s Guide to Credit Spreads
Trader s Guide to Credit Spreads Options Money Maker, LLC Mark Dannenberg mark@optionsmoneymaker.com www.optionsmoneymaker.com About the Author Mark Dannenberg is an options industry veteran with over
More informationCredits And Debits. Learning How to Use Credit Spread Strategies
Credits And Debits Learning How to Use Credit Spread Strategies Neither Better Trades or any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider certain
More informationTradeOptionsWithMe.com
TradeOptionsWithMe.com 1 of 18 Option Trading Glossary This is the Glossary for important option trading terms. Some of these terms are rather easy and used extremely often, but some may even be new to
More informationOf Option Trading PRESENTED BY: DENNIS W. WILBORN
Of Option Trading PRESENTED BY: DENNIS W. WILBORN Disclaimer U.S. GOVERNMENT REQUIRED DISCLAIMER COMMODITY FUTURES TRADING COMMISSION FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE
More informationCopyright 2015 Craig E. Forman All Rights Reserved. Basic Options Review. A Real Financial Network for the Individual Investor
Copyright 2015 Craig E. Forman All Rights Reserved www.tastytrader.net Basic Options Review A Real Financial Network for the Individual Investor Disclosure All investments involve risk and are not suitable
More informationPresents Mastering the Markets Trading Earnings
www.mastermindtraders.com Presents Mastering the Markets Trading Earnings 1 DISCLAIMER Neither MasterMind Traders or any of its personnel are registered broker-dealers or investment advisors. We may mention
More informationRule One Investing Webinar #1 Class Overview
Rule One Investing Webinar #1 Class Overview Welcome to Rule #1 Rule #1 is about Investing. Good Investing is about Certainty. Phil Town Earl Davis Franklin and Buffett said it best: Empty the coins from
More informationSwing TradING CHAPTER 2. OPTIONS TR ADING STR ATEGIES
Swing TradING CHAPTER 2. OPTIONS TR ADING STR ATEGIES When do we want to use options? There are MANY reasons to learn options trading and MANY scenarios in which you might trade them When we want leverage
More informationInvesting Using Call Debit Spreads
Investing Using Call Debit Spreads Terry Walters February 2018 V11 I am a long equities investor; I am a directional trader. I use options to take long positions in equities that I believe will sell for
More informationInvesting Using Call Debit Spreads
Investing Using Call Debit Spreads Strategies for the equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the future than today.
More informationIntroduction to options
Introduction to options Schwab Trading Services 2018 Charles Schwab & Co., Inc. ( Schwab ). All rights reserved. Member SIPC. (0617-7TCF) Important information Options carry a high level of risk and are
More informationOption Selection With Bill Corcoran
Presents Option Selection With Bill Corcoran I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types
More informationInvesting With Synthetic Bonds
Investing With Synthetic Bonds Creating and managing forward conversion arbitrage and collared stock positions I use options to take long positions in equities that I believe will sell for more in the
More informationHow to Trade Options Using VantagePoint and Trade Management
How to Trade Options Using VantagePoint and Trade Management Course 3.2 + 3.3 Copyright 2016 Market Technologies, LLC. 1 Option Basics Part I Agenda Option Basics and Lingo Call and Put Attributes Profit
More informationOptions Mastery Day 2 - Strategies
Options Mastery Day 2 - Strategies Day 2 Agenda 10:00-10:10 - Overview and Q&A from Day 1 10:10-11:00 - Morning Trade Walk Thru & Trade Plans 11:00 12:00 - Options 101 Review & Long Call/Put Criteria 12:00-12:15
More information2018 Copyright ETNtrade. Where the Elite Trade. January 2, 2018
Where the Elite Trade Introduction to Basic Options and Option Application January 2, 2018 Today s Presenter: Dave Meldeau ETNtrade President ETNtrade OptionDave @ETNtrade @OptionDave By printing and/or
More informationInvesting Using Bull Call or Bull Put Spreads
Investing Using Bull Call or Bull Put Spreads How I trade options as an equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the
More informationInvesting Using Bull Call or Bull Put Spreads
Investing Using Bull Call or Bull Put Spreads How I trade options as an equities investor and directional trader I use options to take long positions in equities that I believe will sell for more in the
More informationSwing Trading SMALL, MID & L ARGE CAPS STOCKS & OPTIONS
Swing Trading SMALL, MID & L ARGE CAPS STOCKS & OPTIONS Warrior Trading I m a full time trader and help run a live trading room where we trade in real time and teach people how to trade stocks. My primary
More informationOptions: How About Wealth & Income?
Options: How About Wealth & Income? Disclaimer U.S. GOVERNMENT REQUIRED DISCLAIMER COMMODITY FUTURES TRADING COMMISSION FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REW ARDS, BUT ALS O LARGE POTENTIAL
More informationCopyright 2015 by IntraDay Capital Management Ltd. (IDC)
Copyright 2015 by IntraDay Capital Management Ltd. (IDC) All content included in this book, such as text, graphics, logos, images, data compilation etc. are the property of IDC. This book or any part thereof
More informationEducation Pack. Options 21
Education Pack Options 21 What does the free education pack contain?... 3 Who is this information aimed at?... 3 Can I share it with my friends?... 3 What is an option?... 4 Definition of an option...
More informationCopyright 2018 Craig E. Forman All Rights Reserved. Trading Equity Options Week 2
Copyright 2018 Craig E. Forman All Rights Reserved www.tastytrader.net Trading Equity Options Week 2 Disclosure All investments involve risk and are not suitable for all investors. The past performance
More informationForex, Futures & Option Basics: Chicago-NW Burbs Trading Club. Nick Fosco Sep 1, 2012
Forex, Futures & Option Basics: Chicago-NW Burbs Trading Club Nick Fosco Sep 1, 2012 Agenda: Forex Market Futures Market Options Part 1 Networking Break Options Part 2 Forex Market Currency pair trading
More informationBuy Now, Paid Later. Learning LEAP Leverage Strategies. By Markay Latimer
Buy Now, Paid Later Learning LEAP Leverage Strategies By Markay Latimer Neither Better Trades or any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider
More informationOptions Core Concepts.
0 Options Core Concepts www.optionseducation.org 1 Disclaimer Options involve risks and are not suitable for everyone. Individuals should not enter into options transactions until they have read and understood
More informationwww.zacks.com/optionstrader Zacks Investment Research, Inc. 10 S. Riverside Plaza, Suite 1600 Chicago, Illinois 60606 Introduction Welcome Congratulations on getting started with the Options Trader. Did
More informationThe Poorman s Covered Call. - Debit Spread - Defined Risk - Defined Reward - Mildly Bullish
The Poorman s Covered Call - Debit Spread - Defined Risk - Defined Reward - Mildly Bullish General Nature & Characteristics The Poorman s Covered Call is made up entirely of Call options on the same underlying
More informationWinged and Ratio Spreads
This class is a production of Safe Option Strategies and the content is protected by copyright. Any reproduction or redistribution of this or any Safe Option Strategies presentation is strictly prohibited
More informationInformed Storage: Understanding the Risks and Opportunities
Art Informed Storage: Understanding the Risks and Opportunities Randy Fortenbery School of Economic Sciences College of Agricultural, Human, and Natural Resource Sciences Washington State University The
More informationCondors vs. Butterflies: Is there an Ideal Strategy?
Condors vs. Butterflies: Is there an Ideal Strategy? September 25, 2012 Disclaimer Options involve risks and are not suitable for all investors. Prior to buying or selling options, an investor must receive
More informationEntering Trades Using Trade Alerts Calls, Verticals Debit and Credit Spreads, Iron Condors and GTC Orders. By: Danielle
Entering Trades Using Trade Alerts Calls, Verticals Debit and Credit Spreads, Iron Condors and GTC Orders By: Danielle Danielle@SimplerTrading.com Learning New Strategies Even if you ve been trading options
More informationGLOSSARY OF OPTION TERMS
ALL OR NONE (AON) ORDER An order in which the quantity must be completely filled or it will be canceled. AMERICAN-STYLE OPTION A call or put option contract that can be exercised at any time before the
More informationStrategic Trade Management. A Comprehensive Trading Plan for Managing Risk in Option Trading
Strategic Trade Management A Comprehensive Trading Plan for Managing Risk in Option Trading 1 Neither Better Trades or any of its personnel are registered broker-dealers or investment advisers. I will
More informationStrike prices are listed at predetermined price levels for each commodity: every 25 cents for soybeans, and 10 cents for corn.
Types of Options If you buy an option to buy futures, you own a call option. If you buy an option to sell futures, you own a put option. Call and put options are separate and distinct options. Calls and
More informationGenerating Income: Three Option Trading Ideas
Generating Income: Three Option Trading Ideas Member FINRA & SIPC August 2, 2011 Disclaimer Options involve risks and are not suitable for all investors. Prior to buying or selling options, an investor
More informationOPTIONS ON GOLD FUTURES THE SMARTER WAY TO HEDGE YOUR RISK
OPTIONS ON GOLD FUTURES THE SMARTER WAY TO HEDGE YOUR RISK INTRODUCTION Options on Futures are relatively easy to understand once you master the basic concept. OPTION The option buyer pays a premium to
More informationIntroduction... 4 Options Basics & Overview... 6 Definitions & Examples... 8
DISCLAIMER: Stock, forex, futures, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or
More informationWebinar Presentation How Volatility & Other Important Factors Affect the Greeks
Webinar Presentation How Volatility & Other Important Factors Affect the Greeks Presented by Trading Strategy Desk 1 Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.
More informationTrading Equity Options Week 3
Trading Equity Options Week 3 Copyright 2019 Craig E. Forman All Rights Reserved www.tastytrader.net Disclosure All investments involve risk and are not suitable for all investors. The past performance
More informationTheoTrade. The Rebel s Guide to Trading Options. How to Protect & Profit in Any Market. Copyright TheoTrade, LLC. All rights reserved.
TheoTrade How to Protect & Profit in Any Market Copyright 2015-2016 TheoTrade, LLC. All rights reserved. Edition V2 Unauthorized duplication of this ebook is strictly prohibited. No part of this publication
More informationGetting Started with Options. Jump start your portfolio by learning options. OptionsElitePicks.com
Getting Started with Options Jump start your portfolio by learning options OptionsElitePicks.com Your First Options Trade Let s walk through a simple options trade. For this walk through, I m going to
More informationLecture 11. Introduction of Options
Lecture 11 Introduction of Options Agenda: I. Basics about options ~ Options underlying assets: ~ Expiration dates: ~ Strike prices: ~ Terminology: ~ Dividends: ~ Trading: ~ Taxation: ~ Warrants, Employee
More informationSTRATEGY GUIDE I. OPTIONS UNIVERSITY - STRATEGY GUIDE I Page 1 of 16
STRATEGY GUIDE I Buy-Write or Covered Call Construction Long stock, short one call for every 100 shares of stock owned. Function To enhance profitability of stock ownership and to provide limited downside
More informationAdvanced Hedging SELLING PREMIUM. By John White. By John White
Advanced Hedging SELLING PREMIUM By John White By John White Neither Better Trades or any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider certain securities
More informationcovered warrants uncovered an explanation and the applications of covered warrants
covered warrants uncovered an explanation and the applications of covered warrants Disclaimer Whilst all reasonable care has been taken to ensure the accuracy of the information comprising this brochure,
More informationTrading Options In An IRA Without Blowing Up The Account
Trading Options In An IRA Without Blowing Up The Account terry@terrywalters.com July 12, 2018 Version 2 The Disclaimer I am not a broker/dealer, CFP, RIA or a licensed advisor of any kind. I cannot give
More informationEvent Calendar Shows Market Wide Reports to be Released Next Week.
2012 ISSUE 07 Weekly Insight to the Options Market PULSEOptions For the Week of February 20 th through February 24 th In This Issue: Event Calendar Shows Market Wide Reports to be Released Next Week. Obvious
More informationHow many of you are or will be trading a small account?
Dean Storholt I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing
More informationCALL OPTION - THE RIGHT TO BUY
IN IN REAL ESTATE AN OPTION CAN CONVEY THE RIGHT TO BUY (A (A CALL OPTION IN IN THE EQUITY MARKETS) MARKET VALUE TODAY $250,000,000 1 CALL OPTION - THE RIGHT TO BUY MARKET VALUE TODAY $250,000,000 2 THE
More informationFinding Opportunities in a New Interest Rate Environment
INTEREST RATES Finding Opportunities in a New Interest Rate Environment The Interest Rate market is experiencing significant volatility in 2015, as market participants are anticipating when the FOMC will
More informationInvesting With Synthetic Bonds
Investing With Synthetic Bonds Creating and managing forward conversion arbitrage positions I use options to take long positions in equities that I believe will sell for more in the future than today.
More informationNo duplication of transmission of the material included within except with express written permission from the author.
Copyright Option Genius LLC. All Rights Reserved No duplication of transmission of the material included within except with express written permission from the author. Be advised that all information is
More informationNotes on Trading Options Rick Warner, D.C. For the full options trading video, go to
Notes on Trading Options Rick Warner, D.C. For the full options trading video, go to www.massivebankaccount.com The Big Myth About Options I know you ve probably heard that trading options is risky and
More informationBull Call Spread. This training guide shows you How to use Thinkorswim to :
Bull Call Spread This training guide shows you How to use Thinkorswim to : Enter a Bull Call Spread with : 1) Profit Taking set near the maximum spread profit. 2) Stop Loss set based on Technical Exit
More informationIndiana University South Bend. Presenter: Roma Colwell-Steinke
Indiana University South Bend Presenter: Roma Colwell-Steinke Option Strategies Outline Covered Call Protective Put The Collar Cash Secured Put Vertical Spreads Iron Butterfly Iron Condor ITM, ATM, OTM
More informationAs with any field of study, an understanding of the vocabulary and
PART I Understanding Terms and Theory As with any field of study, an understanding of the vocabulary and special terms used is essential. Options use a special language. Specific terms that you should
More informationMy Top 5 Rules for Successful Debit Spread Trading
My Top 5 Rules for Successful Debit Spread Trading Trade with Lower Cost and Create More Consistency in Your Options Portfolio Price Headley, CFA, CMT TABLE OF CONTENTS: How Debit Spreads Give You Growth
More informationRead chapter 9 and review lecture 9ab from Econ 104 if you don t remember this stuff.
Here is your teacher waiting for Steve Wynn to come on down so I could explain index options to him. He never showed so I guess that t he will have to download this lecture and figure it out like everyone
More informationDon Fishback's ODDS Burning Fuse. Click Here for a printable PDF. INSTRUCTIONS and FREQUENTLY ASKED QUESTIONS
Don Fishback's ODDS Burning Fuse Click Here for a printable PDF INSTRUCTIONS and FREQUENTLY ASKED QUESTIONS In all the years that I've been teaching options trading and developing analysis services, I
More informationEquity Option Selling Strategies
Interactive Brokers Webcast September 2016 Equity Option Selling Strategies Russell Rhoads, CFA Director of Education CBOE Options Institute Disclosure Options involve risks and are not suitable for all
More informationThe Bull Call Spread. - Debit Spread - Defined Risk - Defined Reward - Mildly Bullish
The Bull Call Spread - Debit Spread - Defined Risk - Defined Reward - Mildly Bullish 1. Bull Call Spread 1.1 General Nature & Characteristics The bull call spread is a long vertical spread made up entirely
More informationTRADING ADDICTS. Lesson 1: Introduction to Covered Calls. Getting to Know the Basics. Copyright 2010, Trading Addicts, LLC. All Rights Reserved
Lesson 1: Introduction to Covered Calls Welcome to the Trading Addicts Covered Call tutorial. In this chapter, we will be introducing you to an in depth introduction to the Covered Call strategy, and the
More informationWeekly Options SAMPLE INVESTING PLANS
Weekly Options SAMPLE INVESTING PLANS Disclosures All investing plans are provided for informational purposes only and should not be considered a recommendation of any security, strategy, or specific portfolio
More informationBINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM
BINARY OPTIONS: A SMARTER WAY TO TRADE THE WORLD'S MARKETS NADEX.COM CONTENTS To Be or Not To Be? That s a Binary Question Who Sets a Binary Option's Price? And How? Price Reflects Probability Actually,
More informationWarning. Charts in this presentation were produced with TC2000 with permission and our thanks.
Disclaimer Investing in the stock market or any investment issue or security is considered speculative, and any individual who chooses to invest in any kind of securities should perform his/her own due
More informationCovered Call Writing for Beginners. The E-Book
Covered Call Writing for Beginners The E-Book A low-risk, wealth-building strategy for average investors which utilizes stocks and options to create monthly cash flow Alan Ellman The Blue Collar Investor
More informationFNCE4830 Investment Banking Seminar
FNCE4830 Investment Banking Seminar Introduction on Derivatives What is a Derivative? A derivative is an instrument whose value depends on, or is derived from, the value of another asset. Examples: Futures
More informationTest Yourself / Final Exam
Test Yourself / Final Exam 1. Explain the risk/reward parameters of an option seller? 2. Describe the risk/reward characteristics of an option buyer? 3. What is an option? 4. What is the definition of
More informationOption Trading Strategies
Option Trading Strategies Options are one of the most powerful financial tools available to the investor. A large part of the power of options is only apparent when several options are traded and combined
More informationGuide to Expert Options Trading Advanced Strategies that will Put You in the Money Fast. By Jacob Mintz, Chief Analyst, Cabot Options Trader Pro
Guide to Expert Options Trading Advanced Strategies that will Put You in the Money Fast By Jacob Mintz, Chief Analyst, Cabot Options Trader Pro As a subscriber to Cabot Options Trader Pro, I hope you will
More informationLearn N Trade WORKSHOP STUDY GUIDE
Learn N Trade WORKSHOP STUDY GUIDE Copyright 2004 thinkorswim Advisors, Inc. All rights reserved. Unauthorized duplication of this book is strictly prohibited. No part of this publication may be reproduced,
More informationProfit from a falling share price
Course #: Title Module 6 Profit from a falling share price Topic 1: Introduction... 3 The put buyer's rights... 3 Profits and losses... 4 Topic 2: Leveraged exposure to a falling share price... 5 Leveraged
More informationWeekly Paycheck LIVE Workshop. June 20, 2016
Weekly Paycheck LIVE Workshop June 20, 2016 Welcome to the Weekly Paycheck Workshop Video check can you hear me and see the slides type yes This Live Workshop is being recorded Use the Question box to
More informationebook To Sizzling Weekly Option Trades
Fearless Investing With Options Copyright 2015 by Joshua Belanger. All rights reserved. Printed in the United States of America. No part of this book may be used or reproduced in any manner whatsoever
More informationIn the Chicago area, where I live, many people know what options are.
ccc_yates01_1-24.qxd 6/4/03 1:25 PM Page 1 CHAPTER 1 The Language of Options In the Chicago area, where I live, many people know what options are. That is because several of the world s largest options
More informationWEEK 3 FOREIGN EXCHANGE DERIVATIVES
WEEK 3 FOREIGN EXCHANGE DERIVATIVES What is a currency derivative? >> A contract whose price is derived from the value of an underlying currency. Eg. forward/future/option contract >> Derivatives are used
More informationTheStreet.com Options Alerts. Wealth-Building. for independent investors. by Steven Smith
TheStreet.com Options Alerts 3 Options Wealth-Building Strategies for independent investors by Steven Smith Options allow investors and traders alike to develop myriad approaches to a trade. Someone may
More informationGuide to Options Trading
Guide to Options Trading Easy Strategies that will Put You in the Money Fast By Jacob Mintz, Chief Analyst, Cabot Options Trader As a subscriber to Cabot Options Trader, I hope you will benefit from my
More informationProfit from a rising share price
Course #: Title Module 5 Profit from a rising share price Topic 1: Introduction... 3 The call buyer's rights... 3 Profits and losses... 4 Topic 2: Why buy a call?... 5 Leveraged exposure... 5 Example...
More informationOptions ABCs. Jason Ayres, DMS Director, R N Croft Financial Group
Options ABCs Jason Ayres, DMS Director, R N Croft Financial Group Limitation of liability The opinions expressed in this presentation are those of the author(s) and presenter(s) only and do not necessarily
More informationIntroduction to Options I placed my options trade! Now what?
Introduction to Options I placed my options trade! Now what? Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. FMR LLC. All rights reserved. 746419.2.0 Disclosures
More informationTrading Equity Options Week 4
Copyright 2017 Craig E. Forman All Rights Reserved www.tastytrader.net Trading Equity Options Week 4 A Real Financial Network for the Individual Investor Disclosure All investments involve risk and are
More informationIntroduction to Futures & Options Markets
Introduction to Futures & Options Markets Kevin McNew Montana State University Marketing Your Crop Marketing: knowing when and how to price your crop. When Planting Pre-Harvest Harvest Post-Harvest How
More informationThe #1 Way To Make Weekly Income With Weekly Options. Jack Carter
The #1 Way To Make Weekly Income With Weekly Options Jack Carter 1 Disclaimer: The risk of loss in trading options can be substantial, and you should carefully consider whether this trading is suitable
More informationMerchandisers Corner. By Diana Klemme, Vice President, Grain Service Corp., Atlanta, GA
Merchandisers Corner Photo courtesy of the Chicago Board of Trade By Diana Klemme, Vice President, Grain Service Corp., Atlanta, GA Most people hate buying insurance; it means paying premiums with little
More informationCENTRE Option Snippets
Option Snippets Volatile Markets Straddle High volatility is preferable Buy At the money puts and At the money calls with the same strike price and expiration date Even without knowing the direction, one
More informationAn Introduction to Candlesticks for Options Using Nison Candlesticks as the Foundation to your option trading
Using Nison Candlesticks as the Foundation to your option trading, CMT President: Candlecharts.com Candlestick Benefits Easy to Understand Early Reversals Safety First East + West All markets All Time
More informationPAUL MADISON Tulsa, OK bivio Club Meeting Meeting June 27, 2012
PAUL MADISON Tulsa, OK bivio Club Meeting Meeting 2 1 I am a volunteer presenter! Not soliciting you to buy or sell anything! This is free investment education Before investing in anything: Consult a professional
More informationHPLR Cash Machine. By A.J. Brown.
By A.J. Brown www.secretoftrading.com RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation
More informationThe Four Basic Options Strategies
Cohen_ch01.qxd 1/12/05 10:26 PM Page 1 1 The Four Basic Options Strategies Introduction The easiest way to learn options is with pictures so that you can begin to piece together strategies step-by-step.
More informationBitcoin and many other cryptocurrencies are famous for the volatility that sees their prices fluctuate substantially in a short period of time. If you d like to turn a bear (falling) market into the opportunity
More informationCurrency Option Combinations
APPENDIX5B Currency Option Combinations 160 In addition to the basic call and put options just discussed, a variety of currency option combinations are available to the currency speculator and hedger.
More informationTop Five Things You Should Know Before Buying an Option
Top Five Things You Should Know Before Buying an Option Disclaimers Options involve risks and are not suitable for all investors. Prior to buying or selling options, an investor must receive a copy of
More informationFinancial Mathematics Principles
1 Financial Mathematics Principles 1.1 Financial Derivatives and Derivatives Markets A financial derivative is a special type of financial contract whose value and payouts depend on the performance of
More information