Intelligent Options Trade Planning
Posted by Chris in Trading Presentations on March 9th, 2010
| March 11, 2010 | ||
| 4:00 pm |
We are going to move beyond discussing a single options strategy and take a look at a fully integrated trading plan. What am I talking about?
Well, have you ever traded credit spreads? Sometimes, maybe most of the time, they work out great. Sell the spread. Watch it expire. Keep the credit.
But what happens when that spread winds up in-the-money? If you do not have a good answer for that question, then you owe it to yourself to attend our next live webinar event.
Thursday, March 11, 2010
9:00 p.m. EST (6:OO p.m. PST)
This presentation is going to be a bit different…
It’s focus is a method that uses different options strategies to respond to changing market conditions. So, if you put on a trade expecting the market to do “X” but instead it does “Y”, you have a response that will move you into a hedged position ready to turn the change of market condition to your advantage.
I think you will find that you already know most of the parts, but that you will be impressed with the manner in which they are being assembled to create an intelligent approach to using options to limit market risk and to take advantage of changed market conditions.
Be Sure To Download The Complimentary E-book
First of all, you will want to download a copy of a 100+ page book that is being made available to you. It covers some basics, but also gets into some fairly advanced subjects. Just a word of caution, you may not be able to ready the entire book before Thursday’s presentation.
Download The E-book & Register For The Webinar
Use the link above to download the complimentary e-book. When you do, you will also be able to register for the live presentation. There is no cost for either the book or the presentation.
Also, I spoke with my friends at MarketTamer and they have agreed to host the video replay of the event on their server. That eliminates the storage and bandwidth issues I have when I put these on my server. They’re taking care of everything!
So, what is this training session going to do for you?
For starters, it is going to demonstrate a risk averse method for getting into the market and then follow-up with an intelligently thought out trading plan. It should be truly “eye opening” for many who attend.
Get yourself registered and download the complimentary e-book. Then make time to attend the live presentation or catch the video re-play.
Christopher Smith
TheOptionClub.com
Morphing Calendar Spreads With Dan Sheridan When IV Falls
Posted by Chris in Calendar Spreads, Trade As A Business on March 4th, 2010
On Wednesday, Dan Sheridan talked to us about managing calendar spreads when implied volatility is falling. Most options traders understand and can relate to the idea of price movement hurting calendar spreads, but understanding and responding to changes in implied volatility is a more difficult concept.
So, we brought in a real trading professional to tackle the subject!
The truth is that calendar spreads can make and lose money in two ways. Price movement is one. If the underlying stock or index’s price moves outside of your spread’s break-even points you gotta do something or you’re gonna lose money. But if it behaves, it’s literally just a matter of time and you’re bound to turn a profit.
Implied volatility is another factor working either for us or against us. Calendar spreads are long vega trades, which means that they are exposed to changes in implied volatility. If it rises the value of our spread will rise and if it falls it’s going to hurt us.
The upshot of this little discussion is that understanding implied volatility, its effects upon long vega trades like calendar spreads, and a plan for responding to changes in implied volatility are good things to know about. That’s what went down on Wednesday.
Hopefully you were on-line with us. If not, you can still watch the video re-play which is now available on our website.
Dan Sheridan and Managing Calendar Spreads When Implied Volatility Drops
By the way, if you are a member of my Trading Room you can download the full resolution version of the video from the download section.
Christopher Smith
TheOptionClub.com
