| September 18, 2010 | ||
| 7:00 am | to | 8:00 am |
Opa! It is time to learn how to speak some Greek…
On Saturday, September 18, 2010, Dan Sheridan will be taking some time out of his morning to talk to us about how he uses the “Greeks” to manage monthly income option trades. There is no cost to attend the presentation, but if you would like to join us you will need to be on our seminar announcement list.
Monthly income traders rely upon the accelerating time decay experienced by options as their expiration date approaches. They use strategies such as butterfly spreads, calendar spreads, credit spreads, and more. All of the strategies have a few characteristics in common.
Each strategy is a limited risk trade, meaning that there is a finite amount of money that can be lost on any one position. They are also net short option premium. This means that while you may buy some options as a hedge against potential losses, you are always selling more premium than you are buying. This allows you to profit from that accelerating time decay.
These trading strategies are not without their risks, however. A competent trader manages these positions to avoid significant losses and to preserve as much profitability on a month-to-month basis as reasonably possible. To manage the positions effectively, it is important that you be able to identify the risks that are of potential threat to your trades.
The options “Greeks” are measurements of risk. They are derived from the option pricing formula and are very valuable tools for an option trader. Dan Sheridan will discuss with us how he uses the Greeks to assist him in managing his trades.
If you would like to join us for that presentation, be sure to get on our event list.
Christopher Smith
TheOptionClub.com