2 Disclaimer

Size: px
Start display at page:

Download "2 Disclaimer http://www.optionsontheopen.com http://www.powercycletrading.com"

Transcription

1 1

2 2 Disclaimer

3 3

4 4

5 5

6 6 My Background and Who We Are Benefits of Day Trading & Swing Trading with WEEKLY Options A Dynamic Price Cycle Timing Model for All Asset Classes Powerful Break-out Strategies Hidden Gem WEEKLY Option Expiration Strategies Money Show Giveaway Power Bar Break Out Strategy Money Show Special Kitchen Sink Offer

7 7 Who Is Larry Gaines Anyway? I have been trading and brokering commodities and financial markets for over thirty years. Over twenty years ago, I started trading newly created option contracts on cargoes of North Sea Brent Crude Oil, and traded millions of barrels of these crude oil options. My trading career first began with cargoes of foreign crude oil for legendary oilman Oscar Wyatt, founder of the Coastal Corporation, a large publicly listed integrated oil company in the 80 s. For over ten years, I managed the international oil trading and marketing group for Transworld Oil Bermuda, one of the largest oil trading companies in the world. My group traded billions of dollars worth of oil, foreign exchange and financial market derivatives. It was not uncommon for us to trade over a billion dollars worth of commodity derivatives in a single day.

8 8 I am the founder and CEO of Power Cycle Trading, Home to the Options On The Open Virtual Trading Room, where individuals learn how to generate greater returns from their investment capital with less risk exposure. Utilizing my thirty years of professional trading experience, I developed a simple yet highly accurate price cycle trading system that individual traders can easily learn and use to level the playing field with the Wall Street pros. The Power Cycle Trading(tm)Model gives traders or investors the ability to recognize and capitalize on the beginning of a trend rather than the end.

9 9 So let s get started on this journey to becoming a successful trader

10 10 It is important to understand that becoming a successful trader or even a great trader is a journey. There is no perfect trader or perfect system but when you have a system that is highly accurate, and a teacher and mentor with over 30 years of real trading experience, your journey to achieving success becomes much quicker and easier.

11 11 90% of Trading Success is determined by mental and emotional control. If you are not in control of your emotions, then you are doomed as a trader. As someone who has spent their entire professional career in trading, I know first hand that the best way to take control of your emotions is accomplished by trading with a proven high probability trading system and using good risk management.

12 12 There is a great saying in trading: Anything can work sometimes, nothing works all the time and very few things work most of the time. So as a trader, wouldn t it be great to have an investing or trading methodology that works MOST OF THE TIME? This is what I offer our members at Power Cycle Trading. Today I will go over this trading methodology which incorporates the use of our dynamic trading system with WEEKLY Options to provide our members a system that does work MOST OF THE TIME!

13 Who we are. 13

14 14

15 15 Personally knowing you and your trading reputation for the last thirty years, I kept on remembering your words each totally frustrating trade I made the rest of that week. Today I made six option trades in Apple.5 wins and 1 small loss for a total net profit of $230 per contract. Your indicators guided me through each of these trades. There is no way I would have even thought about day trading options in Apple prior to buying your course. Will ~ Houston, Texas

16 16 "Thanks Larry for developing such a simple to use trading system that has helped me to get more winning trades. I have been very impressed and feel confidant following your system. I have gotten 80% successful trades and on my first CASH trade I made a 15% return!" Mahbub ~ Dallas, Texas

17 17 As seen in the Options on the Open Trading Room. 9:36 AM EST ~ Will from Texas ~ "Day in day out your indicators just continue to impress me Larry! 9:41 AM EST ~ Stewart from Wales, U.K. ~ "Totally agree with Will. Profit target reached again already thanks Larry. You can count me in until I die, so please never retire! Will just listen in and read comments for rest of the day." Notice the time!

18 18 While I ve traded credit spreads for years, I ve enjoyed and profited from some exciting new strategies that have less risk and more reward. Larry is an excellent teacher and sticks to high probability trades It s a winner!! Lee ~ Naples, Florida

19 19 The Power of WEEKLY Options ~ LEVERAGE at a LOW COST ~

20 20 Trading Benefits of WEEKLY Options

21 21 When day trading or swing trading stocks I use Weekly Options which offer some exceptional trading benefits. One primary benefits is.. Leverage at an extremely low cost

22 22 WEEKLY options now account for nearly 12% of the 300+ MILLION option contracts traded every month. Options On The Open is one of the very few educational services that teach how to day trade and swing trade WEEKLYs in a virtual trading room using our proven trading system the Power Cycle Trading(tm)Model. WEEKLYS are still a relatively new contract but should not be overlooked for they offer huge trading benefits, if you know how to use them. Some of the more exciting stocks like Apple and Google, WEEKLYs now make up a whopping 40% of all option volume traded! New options are available each Thursday and expire the next Friday, 8 days later.

23 23 Their Benefits Weeklys are cheap... since expiration is within days, and often hours, you can purchase At-The-Money Weeklys for as little as $5 or $10 per contract... Weeklys have unlimited profit potential... They can move 500%, 800%, 1,000% or more on a very regular basis. Contrast that with regular options. Weeklys are easily traded securities... They trade just like stocks. And volume is very high so liquidity has never been a problem. Weeklys bring in 333% more low-risk income... Weekly options give you 52 times a year to profit from low-risk, non-directional & directional income strategies more opportunities every year.

24 24 WEEKLYS are for everyone - not just the pros. Options have managed to get a bad rep over the years - despite being used by practically every professional investor out there. This is because most education offered on options is so difficult and complex that new traders are simply overwhelmed. I use what I call the Practical Way of Trading Options to teach option trading ~ this approach is focused on Option Delta & Market Timing Market Timing is the single most important factor in assessing a stock's likely price movement. Traders realize the importance of market timing, but just don't have what they need to get this information quickly and accurately. But with my Price Cycle Trading System, our members at Options On The Open have an almost 'unfair' advantage.

25 Combining the accuracy of the PCTM with Weekly Option trading has regularly demonstrated outstanding profits ranging from 25% to greater than 400% over a one to five day period in our virtual trading room at Options on the Open. The dynamics of these short duration Weeklys offer us exceptional trading benefits: The ability to make money with lower risk Low capital requirements Shortened time frame for trading Higher profits Higher return on capital Weekly trading opportunities 25

26 Some simple facts about WEEKLY Options 26

27 27 The value of an option is determined by: Time Value X Implied Volatility X Intrinsic/Extrinsic value By using Weekly Option s for day trading & swing trading we have been able to better utilize their beneficial factors of; time decay, volatility and option delta, creating a forceful triple win trading formula and Then by combining our highly accurate directional price cycle ~ break-out system we have created one really great High Probability Trading Methodology.

28 28

29 29

30 30

31 31 Apple, Inc. $640 per share Market Price Volume Profit/Share or Contract Profit/100 Shares Cost ROC 100 shares $64,000 $1.00 $ % AAPL Weekly ~ 5 days expiration "Option Delta.50" $640 Calls ~ Cost/Contract $500 1 contract $500/Contract $0.25 $ % $640 Calls ~ Cost/Contract $500 1 contract $500/Contract $0.50 $ % $640 Calls ~ Cost/Contract $500 1 contract $500/Contract $1.00 $ % $640 Calls ~ Cost/Contract $500 1 contract $500/Contract $3.00 $ % AAPL Monthly ~ 12 days expiration "Option Delta.50" $640 Calls ~ Cost/Contract $1,050 1 contract $1,050/Contract $0.25 $ % $640 Calls ~ Cost/Contract $1,050 1 contract $1,050/Contract $0.50 $ % $640 Calls ~ Cost/Contract $1,050 1 contract $1,050/Contract $1.00 $ % $640 Calls ~ Cost/Contract $1,050 1 contract $1,050/Contract $3.00 $ %

32 Our trading success starts with the Power Cycle Trading(tm)Model which we use for all day trades & swing trades. 32

33 33 As a professional trader I have spent thousands of hours and thousands of dollars on trading systems. I was paid well into the millions to analyze and implement trades for others. I have used, reviewed and developed many different trading systems, and in my opinion, the ones that perform best have a medium complexity, not too simple yet not too complex.

34 You can use the Power Cycle Trading Model to trade successfully across all asset classes and time frames. 34 It is Universal. It can be used by investors or traders for market timing the MACRO & Long Term Trends of the markets, OR by traders wanting highly accurate entries for swing trades and day trades..it covers them all.. Our focus in the Options On The Open Virtual Trading Room is day trading and swing trading both Options & Futures using the PCTM.

35 35 The Power Cycle Trading(tm)System is based on a 4-step price cycle trading model. It uses four powerful indicators to signal a price cycle change by identifying: A defined price range Price volatility Change in price cycle Change in price cycle momentum

36 36 We use this same model of indicators across 2 to 4 different time frames for all trade set-ups & trigger entries. This is a trade confirming process. This combination has created a trading system that has an average winning percentage of over 75%.

37 To further enhance the accuracy of this Trading Model we incorporate Moving Averages & Trend Lines for Break-Out Trades & Trade Management. 37

38 38 Trend Line Break-Outs A simple strategy when used correctly

39 39 Trend Lines ~ The correct way to construct Supply and demand dictate price movement and the use of Trend Lines. Trend Lines are universally used but the construction of them can be very dissimilar from one person to the next causing for a very subjective interpretation. Consistency and uniformity are totally lacking. There is one effective method that will make constructing a trend line consistent and mechanical, making it no longer subjective.

40 40 The difficulty, when creating these lines, involves the specific points to select and connect (review charts below). Human nature often interferes in the proper construction of these lines. We are accustomed to review the historical price activity of a market from past to present, with the dates reading from left to right. As a result, the demand and supply lines of a trend line are drawn and extended from the left side of the chart to the right. Intuitively, this is incorrect, recent price activity is more significant than historical movement. So precision and accuracy demand that the lines be extended from right to left with the most recent date appearing at the right side of the chart.

41 41 Supply Pivot Points A supply trend line is the declining price movement as defined by a down sloping supply line as well as the pattern of both lower price highs and lows. The Supply Pivot Point is when there is a Price High that is not exceeded by the Prior Price or the Price immediately after. This is a Pivot High.

42 Apple 5 Minute Chart showing a Descending Supply Trend Lines 42

43 Google Daily 43

44 Gold Futures Daily 44

45 S&P Minute Chart showing a Descending Supply Trend Lines 45

46 46 Demand Pivot Points The Demand Pivot Point is when there is a Lower Price that is lower than the Prior Price and the Price immediately after. This is a Pivot Low.

47 S&P 500 Daily Chart showing an Ascending Demand Trend Line 47

48 SPY 5 Minute Bar Chart showing an Ascending Demand Trend Line 48

49 49 Friday s WEEKLY Option Expiration ~ Strategies ~ Volatility Collapse Income Strategy Advanced Directional Strategy

50 50 Screening Steps For Friday Expiration Trades Looking for stocks that are susceptible to a short squeeze Looking for stocks that may break-out (Up or Down). Trend line analysis is used Use the Power Cycle Trading(tm)Model for all entries Pinning analysis done on all stocks or ETFs being considered

51 51

52 52 Option Chain ~ Strike Pinning Analysis The strike closest to the underlying asset price, on the close, at expiration is referred to the pinning strike. To screen for Friday Expiration Trades Pinning Analysis is done on every stock or ETF being considered for a trade.

53 53 One major key to a successful Weekly Option Expiration Trades is in the selection of the strike that is traded for Pinning. The main component of this analysis deals with option open interest and volume of the options that expire on Friday. The formula for this analysis is based on total volume (call Open Interest plus daily call volume plus put Open Interest plus put daily volume). This is done on Thursday, 1 day, prior to Friday s Option Expiration.

54 54 This statistical overview identifies the strike with the most activity. On expiration there is a high probability that the market will push price towards the most active strike by the close on expiration. There are so many market forces in play and this information highlights the most active strikes to watch and trade.

55 Option Chain APPLE 55

56 56 The Option Chain of APPL showed the open interest volume skewed to the $670 Calls with the most total volume building at the $665 Calls. $665 Total Volume: Call O.I. 8,659 + call volume 95,295 + put volume 60,537 + Put O.I. 9,297 = Total Volume of 173,788 For a thorough analysis over a number of stocks you can use a spread sheet to display total volumes:

57 57 How to use? In this example the open interest total volume on calls is more than the puts (a call volume skew) and indicates the potential for a bullish close towards the $665 & $670 Call Strike at close. This gives me a bullish closing bias & has me looking for long WEEKLY Option Strategies.

58 58 Volatility Collapse Income Strategy Short selling WEEKLY Puts for volatility collapse on Friday Option Expiration. This strategy benefits from an increase in the price of the underlying asset or a decrease in volatility. The risk is almost unlimited as the underlying asset falls. The profit is limited to the amount collected in option premium. The highest profitability for maximum profit occurs when the put strike price chosen to short is ATM or ITM and is OTM at the close on expiration.

59 59 When one sells an option you collect that premium but now hold the option position with potential liability. For this reason the seller of a put or call is required to put up some collateral to hold the position. This collateral is not a cost. It is simply a deposit made with funds from one s trading account and is known as margin. So when you consider the return on capital the only capital is the risk free interest that could be earned on funds used for collateral. This is creates great leverage.

60 60

61 Option Chain AAPL 8/31/

62 Apple Daily Chart 62

63 63 Apple 400 tick chart Friday Expiration 8/31/12 Closed at $665.24

64 Apple $670 Put 15 minute Friday Expiration 8/31/12 Apple $670 Put closed ITM at $

65 Apple $665 Put 15 minute Friday Expiration 8/31/12 Apple $665 Put closed OTM at $

66 66 Returns on Apple short put strategy Short $670 Puts: Expired ITM ~ covered before close Premium received $800 per contract Covered ~ bought $475 per contract Gross profit ~ $325 per contract Return on Capital Out: 68.42% Short $665 Puts ~ Expired worthless OTM Premium received $300 per contract Expired worthless Gross profit ~ $300 per contract Return on Capital Out: 100%

67 Option Chain GLD 8/31/

68 GLD Daily Chart 68

69 GLD 2 minute chart 8/31/

70 Gold Futures December contract 2 minute chart 70

71 GLD $162 Put 15 minute chart 8/31/

72 72 Returns on GLD short put strategy Short $162 Puts: Expired worthless OTM Premium received $160 per contract Expired worthless Gross profit ~ $160 per contract Return on Capital Out: 100%

73 Advanced Directional Strategy 73 Friday Expiration Day ~ day trade only Buy Single Options (Puts or Calls) ~ cheap options with defined low risk due to volatility collapse on expiration $5/contract, $1o/contract, $25/contract, $50/contract Looking for stocks that are susceptible to a short squeeze Looking for stocks that may break-out (Up or Down). Trend line analysis is used Use the Power Cycle Trading(tm)Model for all entries Pinning analysis done on all stocks or ETFs being considered Potential Profits 50% ~ 1,000% plus

74 74

75 75

76 76 Advanced Directional Strategy ~ NFLX Bought at open 3/16/12 ~ Friday expiration the $110 call at$11/contract $110 calls high at $174/contract/closed at $127/contract Net gain ~ $127/contract - $11/contract = $116/contract or 1,055% Return on Capital!

77 NFLX~ 3/16/12 ~ Friday ~Option Chain ~ Volume at $110 Call 77

78 NFLX Daily Chart 3/16/

79 NFLX 30 Minute Chart 3/16/

80 NFLX~ 3/16/12 ~ 10 Minute Price Chart & Option Chart $110 Calls 80

81 81 Advanced Directional Strategy ~ BIDU Bought at open 1/27/12 ~ Friday expiration the $130 call at$5/contract $130 call closed at $145/contract Net gain ~ $145/contract - $5/contract = $140/contract or 2,800% Return on Capital!

82 BIDU~ 1/27/12 ~ Friday ~Option Chain ~ $130 82

83 BIDU Daily Chart 1/27/

84 BIDU 30 Minute Chart 1/27/

85 BIDU~ 1/27/12 ~ Friday expiration ~$130 Call 85

86 86

87 87

88 88 Any questions... Please Thank you for your interest in Power Cycle Trading~

Swing Trade Warrior Chapter 1. Introduction to swing trading and how to understand and use options How does Swing Trading Work? The idea behind swing trading is to capitalize on short term moves of stocks

More information

INTRODUCTION TO WEEKLY OPTIONS

INTRODUCTION TO WEEKLY OPTIONS INTRODUCTION TO WEEKLY OPTIONS Kerry W. Given, Ph.D. (Dr. Duke) Parkwood Capital, LLC Weekly options have grown dramatically in popularity over the past year or two. In one sense, you could say weekly

More information

How to Collect a 162% Cash on Cash Return

How to Collect a 162% Cash on Cash Return How to Collect a 162% Cash on Cash Return Today we are going to explore one of the most profitable, low-risk income strategies I ve come across in my 27 years of trading. This income strategy produced

More information

Table of Contents. Make Money Trading Options Top-15 Option Trading Strategies. RLCG Management LLC All Rights Reserved Page 2

Table of Contents. Make Money Trading Options Top-15 Option Trading Strategies. RLCG Management LLC All Rights Reserved Page 2 Table of Contents Introduction: Why Trade Options?... 3 Strategy #1: Buy-Write or Covered Call... 4 Strategy #2: Sell-Write or Covered Put... 5 Strategy #3: Protective Put... 6 Strategy #4: Collar... 7

More information

No duplication of transmission of the material included within except with express written permission from the author.

No 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 information

Advanced Options Strategies SAMPLE INVESTING PLANS

Advanced Options Strategies SAMPLE INVESTING PLANS Advanced Options Strategies SAMPLE INVESTING PLANS 1 Important Information Neither Investools Inc. nor any of its officers, employees, representatives, agents, or independent contractors are, in such capacities,

More information

INDEPENDENT. OBJECTIVE. RELIABLE. Options Basics & Essentials: The Beginners Guide to Trading Gold & Silver Options

INDEPENDENT. OBJECTIVE. RELIABLE. Options Basics & Essentials: The Beginners Guide to Trading Gold & Silver Options INDEPENDENT. OBJECTIVE. RELIABLE. 1 About the ebook Creator Drew Rathgeber is a senior broker at Daniels Trading. He has been heavily involved in numerous facets of the silver & gold community for over

More information

What You Must Know About Option Spread Trading. ETFs. The Lower Risk Strategy Offering Big Potential Gains

What You Must Know About Option Spread Trading. ETFs. The Lower Risk Strategy Offering Big Potential Gains What You Must Know About Option Spread Trading ETFs The Lower Risk Strategy Offering Big Potential Gains What You Must Know About Option Spread Trading The Lower Risk Trading Strategy Offering Big Potential

More information

Option Theory Basics

Option Theory Basics Option Basics What is an Option? Option Theory Basics An option is a traded security that is a derivative product. By derivative product we mean that it is a product whose value is based upon, or derived

More information

Basic Options Part 4A. How to trade the Big A System Using Options

Basic Options Part 4A. How to trade the Big A System Using Options Basic Options Part 4A How to trade the Big A System Using Options 1 First Things First You should not trade the Big A System using options unless you fully understand all of the basic fundamentals of The

More information

27PercentWeekly. By Ryan Jones. Part II in the Series Start Small and Retire Early Trading Weekly Options

27PercentWeekly. By Ryan Jones. Part II in the Series Start Small and Retire Early Trading Weekly Options By Ryan Jones Part II in the Series Start Small and Retire Early Trading Weekly Options Important My 27% Option Strategy is one of the best option trading opportunities you will come across. When you see

More information

BINARY OPTION TRADING. Lesson #1

BINARY OPTION TRADING. Lesson #1 BINARY OPTION TRADING Lesson #1 1 Table of Contents Forward. 3 Introduction to Binary Option... 4 Benefits of Trading Binary Options. 5-6 Binary Option Basics 7 Types of Binary Option. 8-10 Unique OptionBit

More information

Vol. 8 No. 9 September 2013. By: Carley Garner OFF THE WALL. By: Wyatt PG 8. Track ntrade: Online Offers! PG 6

Vol. 8 No. 9 September 2013. By: Carley Garner OFF THE WALL. By: Wyatt PG 8. Track ntrade: Online Offers! PG 6 Vol. 8 No. 9 September 2013 By: Carley Garner PG 2 OFF THE WALL By: Wyatt PG 8 Track ntrade: Online Offers! PG 6 Crude Oil Speculators have "Options" By: Carley Garner Crude oil is perhaps the most notorious

More information

Chapter 3.4. Forex Options

Chapter 3.4. Forex Options Chapter 3.4 Forex Options 0 Contents FOREX OPTIONS Forex options are the next frontier in forex trading. Forex options give you just what their name suggests: options in your forex trading. If you have

More information

Options: How About Wealth & Income? I Really Don t Care Which Way the Market Goes!

Options: How About Wealth & Income? I Really Don t Care Which Way the Market Goes! Options: How About Wealth & Income? I Really Don t Care Which Way the Market Goes! Disclaimer U.S. GOVERNMENT REQUIRED DISCLAIMER COMMODITY FUTURES TRADING COMMISSION FUTURES AND OPTIONS TRADING HAS LARGE

More information

Introduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors...

Introduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors... Table of Contents Introduction... 4 A look at Binary Options... 5 Who Trades Binary Options?... 5 Binary Option Brokers... 5 Individual Investors... 5 Benefits of Trading Binary Options... 6 Binary Option

More information

Whether you re new to trading or an experienced investor, listed stock

Whether you re new to trading or an experienced investor, listed stock Chapter 1 Options Trading and Investing In This Chapter Developing an appreciation for options Using option analysis with any market approach Focusing on limiting risk Capitalizing on advanced techniques

More information

Wednesday, September 25, 13. Trading Apple Algos Using Weekly Options

Wednesday, September 25, 13. Trading Apple Algos Using Weekly Options Trading Apple Algos Using Weekly Options Using Options with Signals Trade Signals provide a definitive edge Options allow us to taylor our risk Time decay adds juice to this edge Primary Strategy During

More information

BONUS REPORT#5. The Sell-Write Strategy

BONUS REPORT#5. The Sell-Write Strategy BONUS REPORT#5 The Sell-Write Strategy 1 The Sell-Write or Covered Put Strategy Many investors and traders would assume that the covered put or sellwrite strategy is the opposite strategy of the covered

More information

Guidelines to use with Fibonacciqueen trade setups!!!

Guidelines to use with Fibonacciqueen trade setups!!! Guidelines to use with Fibonacciqueen trade setups!!! Updated January 2014 As far as the price analysis that I run every day in the markets, there are three different types of Fibonacci price relationships

More information

Buying Call or Long Call. Unlimited Profit Potential

Buying Call or Long Call. Unlimited Profit Potential Options Basis 1 An Investor can use options to achieve a number of different things depending on the strategy the investor employs. Novice option traders will be allowed to buy calls and puts, to anticipate

More information

Trading Systems Series

Trading Systems Series Trading Systems Series HOW DO I TRADE STOCKS.COM Copyright 2011 10 Trading Systems Series 10 TIMES YOUR MONEY IN 30 TRADES THE 4% SWING SYSTEM 30 4% This report will outline a simple 5 min a week strategy

More information

THE POWER OF FOREX OPTIONS

THE POWER OF FOREX OPTIONS THE POWER OF FOREX OPTIONS TOPICS COVERED Option basics Call options Put Options Why trade options? Covered call Covered put Hedging your position using options How to repair a trading position THE POWER

More information

Class 5: Options Trading - Part 2 Trading Options Like Stock. Review Basic Options. Right to buy stock @ certain price

Class 5: Options Trading - Part 2 Trading Options Like Stock. Review Basic Options. Right to buy stock @ certain price Today s Class Review basic options Trading options like stock Class 5: Options Trading - Part 2 Trading Options Like Stock How options prices move with stock Choosing the right options Stock Option Basics

More information

NO PART OF THIS E-BOOK MAY BE REPRODUCED FOR PERSONAL OR COMMERCIAL PURPOSE WITHOUT THE EXPRESS PERMISSION OF MARKET GEEKS LLC www.marketgeeks.

NO PART OF THIS E-BOOK MAY BE REPRODUCED FOR PERSONAL OR COMMERCIAL PURPOSE WITHOUT THE EXPRESS PERMISSION OF MARKET GEEKS LLC www.marketgeeks. NO PART OF THIS E-BOOK MAY BE REPRODUCED FOR PERSONAL OR COMMERCIAL PURPOSE WITHOUT THE EXPRESS PERMISSION OF MARKET GEEKS LLC www.marketgeeks.com TABLE OF CONTENTS Introduction 2 My Story 3 Years Later

More information

Swing Trade Warrior Chapter 2. Introduction to swing trading strategies and classic swing trade patterns Options gap fill strategy We look for stocks that have made extreme moves up or down (gappers) We

More information

THE EQUITY OPTIONS STRATEGY GUIDE

THE EQUITY OPTIONS STRATEGY GUIDE THE EQUITY OPTIONS STRATEGY GUIDE APRIL 2003 Table of Contents Introduction 2 Option Terms and Concepts 4 What is an Option? 4 Long 4 Short 4 Open 4 Close 5 Leverage and Risk 5 In-the-money, At-the-money,

More information

Section 1. Introduction to Option Trading

Section 1. Introduction to Option Trading Section 1. Introduction to Option Trading Trading stock options is a much different game from trading the underlying stocks. When options are traded for appreciation, it is a game of leverage, with big

More information

More and more people are now including options in their investments as a smart way to get ahead of the market.

More and more people are now including options in their investments as a smart way to get ahead of the market. Introduction Welcome Congratulations on getting started with the Options Trader. Did you know that in spite of all the turmoil in the financial markets as of late (or partly maybe because of it), the growth

More information

Frequently Asked Questions on Derivatives Trading At NSE

Frequently Asked Questions on Derivatives Trading At NSE Frequently Asked Questions on Derivatives Trading At NSE NATIONAL STOCK EXCHANGE OF INDIA LIMITED QUESTIONS & ANSWERS 1. What are derivatives? Derivatives, such as futures or options, are financial contracts

More information

Beginner s Guide to CFDs

Beginner s Guide to CFDs Beginner s Guide to CFDs Chapters 1.1-1.3 www.trader.ge CFDs Chapter 1.1 / A Basic Description Welcome to this chapter, which will give a brief introduction to the history of CFDs. If you are already familiar

More information

Option Basics: A Crash Course in Option Mechanics

Option Basics: A Crash Course in Option Mechanics 1 chapter # 1 Option Basics: A Crash Course in Option Mechanics The concept of options has been around for a long time. Ancient Romans, Greeks, and Phoenicians traded options based on outgoing cargoes

More information

OptionTrader. Amazingly Accurate New Mechanical Options Strategies! Plus: The NEW Visual Volatility Tool. NEW Harnessing the Power of Options Course

OptionTrader. Amazingly Accurate New Mechanical Options Strategies! Plus: The NEW Visual Volatility Tool. NEW Harnessing the Power of Options Course Nirvana s OptionTrader Amazingly Accurate New Mechanical Options Strategies! Plus: The NEW Visual Volatility Tool NEW Harnessing the Power of Options Course Ed Downs Will Teach You How To: Maximize Profits:

More information

Hedge Fund Trader. Quick Start Guide by SmartSetups.com

Hedge Fund Trader. Quick Start Guide by SmartSetups.com Hedge Fund Trader Quick Start Guide by SmartSetups.com Risk Disclaimers Trading or investing carries a high level of risk, and is not suitable for all persons. Before deciding to trade or invest you should

More information

Day Trading the Emini S&P 500 (ES) and Light Sweet Crude Oil (CL)

Day Trading the Emini S&P 500 (ES) and Light Sweet Crude Oil (CL) Day Trading the Emini S&P 500 (ES) and Light Sweet Crude Oil (CL) Live Trade Room with Carlos Diaz Disclaimer: The information in this guide is provided for your entertainment only. We cannot and do not

More information

Futures Contract Introduction

Futures Contract Introduction Futures Contract Introduction 1 The first futures exchange market was the Dojima Rice exchange in Japan in the 1730s, to meet the needs of samurai who being paid in rice and after a series of bad harvests

More information

Toms Market Outlook and Trade Alerts for Oct 19 th, 2014. Message from Tom

Toms Market Outlook and Trade Alerts for Oct 19 th, 2014. Message from Tom Toms Market Outlook and Trade Alerts for Oct 19 th, 2014 Message from Tom I believe the markets have finally cooled their selling ways, partly due to the fact that Ebola is not a concern like people thought

More information

Option Trading for Rookies, Session I: Option Trading Terminology

Option Trading for Rookies, Session I: Option Trading Terminology Trading for Rookies, Session I: Trading Terminology Disclaimers s involve risks and are not suitable for all investors. Prior to buying or selling options, an investor must receive a copy of Characteristics

More information

The 3 Rules of Successful Swing Trading

The 3 Rules of Successful Swing Trading The 3 Rules of Successful Swing Trading Trade with the Wind at Your Back The Rule That Hits Home Runs & Be In the Right Place at the Right Time by Michele Mish Schneider, Director of Trading Research &

More information

Steve Meizinger. Understanding the FX Option Greeks

Steve Meizinger. Understanding the FX Option Greeks Steve Meizinger Understanding the FX Option Greeks For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin

More information

The Ten Commandments of Forex Target Trading

The Ten Commandments of Forex Target Trading The Ten Commandments of Forex Target Trading www.forextargettrading.com The 1st Commandment: Thou Shalt Always Protect Thy Capital Without capital, you have nothing with which to trade. Trading any currency,

More information

The Trading Method That Proves Even a Beginning Trader Can Become a Profitable Trader in Just Hours by Trading with the Rhythm of the Market.

The Trading Method That Proves Even a Beginning Trader Can Become a Profitable Trader in Just Hours by Trading with the Rhythm of the Market. The DecisionBar Trading Manual The Trading Method That Proves Even a Beginning Trader Can Become a Profitable Trader in Just Hours by Trading with the Rhythm of the Market. Part 1 By Les Schwartz Welcome

More information

Collecting a Weekly Paycheck by Trading Covered Calls

Collecting a Weekly Paycheck by Trading Covered Calls December 5 th 2012 Collecting a Weekly Paycheck by Trading Covered Calls In this week s Cash Cow Newsletter we are going to focus on Covered Calls. Writing weekly covered calls has been a strategy that

More information

Introduction to Options -- The Basics

Introduction to Options -- The Basics Introduction to Options -- The Basics Dec. 8 th, 2015 Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. 2015 FMR LLC. All rights reserved. 744692.1.0 Disclosures Options

More information

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies 25 Currencies have a reputation for being markets that trend well. And, every business day over

More information

Derivative Users Traders of derivatives can be categorized as hedgers, speculators, or arbitrageurs.

Derivative Users Traders of derivatives can be categorized as hedgers, speculators, or arbitrageurs. OPTIONS THEORY Introduction The Financial Manager must be knowledgeable about derivatives in order to manage the price risk inherent in financial transactions. Price risk refers to the possibility of loss

More information

www.optionseducation.org OIC Options on ETFs

www.optionseducation.org OIC Options on ETFs www.optionseducation.org Options on ETFs 1 The Options Industry Council For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations,

More information

Trading System Design. The Option Selling Model

Trading System Design. The Option Selling Model Trading System Design The Option Selling Model And Other Trading System Analysis J. Murakami 1 Headings 1. Introduction 2. The Debate 3. Objective 4. Markets 5. Trade Structure 6. Technology 7. Entry 8.

More information

For example, someone paid $3.67 per share (or $367 plus fees total) for the right to buy 100 shares of IBM for $180 on or before November 18, 2011

For example, someone paid $3.67 per share (or $367 plus fees total) for the right to buy 100 shares of IBM for $180 on or before November 18, 2011 Chapter 7 - Put and Call Options written for Economics 104 Financial Economics by Prof Gary R. Evans First edition 1995, this edition September 24, 2011 Gary R. Evans This is an effort to explain puts

More information

Futures and Futures Options

Futures and Futures Options Futures and Futures Options Halifax New Zealand New Zealand Financial Services Register 146605 AIG Building, Level 11/41 Shortland Street Auckland City 1010 New Zealand as Introducing Broker for Halifax

More information

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION READ OUR FULL RISK WARNING. Spread betting, Contracts for Differences (CFDs) & Foreign Exchange (FX) are leveraged products & carry a high level of risk to your capital as prices might move rapidly against

More information

The Four Basic Options Strategies

The Four Basic Options Strategies 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. However, first we need to understand

More information

How to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen

How to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen How to Trade Intra-Day Gold and S&P500 with Low Risk Setups by Chris Vermeulen Last week was an incredible week for trading the intraday charts. With rising volume and volatility prices began to move up

More information

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to Derivatives¬Ľ

More information

Section 1 - Overview; trading and leverage defined

Section 1 - Overview; trading and leverage defined Section 1 - Overview; trading and leverage defined Download this in PDF format. In this lesson I am going to shift the focus from an investment orientation to trading. Although "option traders" receive

More information

The World s Best Technical Indicator: The Ichimoku Cloud By Andrew Keene

The World s Best Technical Indicator: The Ichimoku Cloud By Andrew Keene The World s Best Technical Indicator: The Ichimoku Cloud By Andrew Keene Table of Contents 1) Introduction 2) One Small Favor 3) What is the Ichimoku Cloud? 4) What are the 6 Components of the Cloud? 5)

More information

Phone 541-955-2885 Toll-Free 1-800-732-3118 Fax 541-955-2889 www.gbemembers.com

Phone 541-955-2885 Toll-Free 1-800-732-3118 Fax 541-955-2889 www.gbemembers.com Strangle Strategy GOAL The Strangle strategy is rarely mentioned in option trading circles. However, I believe it has the potential to be quite rewarding, especially for the under capitalized trader. As

More information

FINANCIAL ENGINEERING CLUB TRADING 201

FINANCIAL ENGINEERING CLUB TRADING 201 FINANCIAL ENGINEERING CLUB TRADING 201 STOCK PRICING It s all about volatility Volatility is the measure of how much a stock moves The implied volatility (IV) of a stock represents a 1 standard deviation

More information

How To Take Advantage Of The Coming Rise In Volatility

How To Take Advantage Of The Coming Rise In Volatility How To Take Advantage Of The Coming Rise In Volatility Introduction If you ve spent any amount of time following the market, then you re familiar with the term volatility. You ll often hear financial media

More information

292 INDEX. Growth and income style of trading, 12 13 winning strategies (see Winning growth and income strategies)

292 INDEX. Growth and income style of trading, 12 13 winning strategies (see Winning growth and income strategies) Index Aggressive growth strategies, 56 70 all-cap growth, 61 63 call options, 274 first profit, 68 70 generally, 11 market capitalization study, 65 methodology, 56 59, 61 62, 67, 69 70 1-week rebalance

More information

My Favorite Futures Setups. By John F. Carter www.tradethemarkets.com

My Favorite Futures Setups. By John F. Carter www.tradethemarkets.com My Favorite Futures Setups By John F. Carter www.tradethemarkets.com Recognizing Momentum Incredibly easy to do in hindsight. Get in Before the Move? I m a big believer in not chasing markets. By the time

More information

Strategies in Options Trading By: Sarah Karfunkel

Strategies in Options Trading By: Sarah Karfunkel Strategies in Options Trading By: Sarah Karfunkel Covered Call Writing: I nvestors use two strategies involving stock options to offset risk: (1) covered call writing and (2) protective puts. The strategy

More information

Complete Options Trading Program

Complete Options Trading Program TradeWithOptions.com Replace Your Income with TRADING PROFITS Complete Options Trading Program www.tradewithoptions.com Table of Contents Option Basics 6 1. Approach to Profitable Options Trading 7 2.

More information

FINANCIAL ENGINEERING CLUB TRADING 101

FINANCIAL ENGINEERING CLUB TRADING 101 FINANCIAL ENGINEERING CLUB TRADING 101 WHAT IS TRADING TRADING/INVESTING is the act of putting capital to use, by either buying or selling securities, for the purpose of gaining profits. Buy low, sell

More information

Trading Technical Analysis Signals With Option Spreads. By Steve Lentz Director of Education, DiscoverOptions Mentoring

Trading Technical Analysis Signals With Option Spreads. By Steve Lentz Director of Education, DiscoverOptions Mentoring Trading Technical Analysis Signals With Option Spreads By Steve Lentz Director of Education, DiscoverOptions Mentoring Disclaimer The views of third party speakers and their materials are their own and

More information

Gold Exposed: Spot Gold versus Gold Futures 1.800.800.3840

Gold Exposed: Spot Gold versus Gold Futures 1.800.800.3840 1.800.800.3840 2 Investing in Gold can be a daunting task, especially for the new trader. What I ve created is a simple guide to help anyone considering trading Gold. I was just like you when I got started,

More information

Commodity Futures Are Trading at Pivot Points. by Chris Vermeulen

Commodity Futures Are Trading at Pivot Points. by Chris Vermeulen by Chris Vermeulen The commodity futures charts and gold precious metal stocks have be trading with increased volatility as they bounce between support and resistance levels on the daily and hourly charts.

More information

Blue Capital Markets Limited 2013. All rights reserved.

Blue Capital Markets Limited 2013. All rights reserved. Blue Capital Markets Limited 2013. All rights reserved. Content What are Options? 1 What types of forex options can I trade with easy-forex? 1 I m new to forex can I trade options? 1 How do I trade easy-forex

More information

Trading CFDs with Trader Dealer ABN 17 090 611 680 (AFSL NO 333297)

Trading CFDs with Trader Dealer ABN 17 090 611 680 (AFSL NO 333297) Trading CFDs with Trader Dealer ABN 17 090 611 680 (AFSL NO 333297) Pages 1. Overview 3 2. What is a CFD? 3 3. Why Trade CFDs? 3 4. How Do CFDs Work? 4 4.1 Margin 4 4.2 Commission 5 4.3 Financing 6 4.4

More information

Currency Options. www.m-x.ca

Currency Options. www.m-x.ca Currency Options www.m-x.ca Table of Contents Introduction...3 How currencies are quoted in the spot market...4 How currency options work...6 Underlying currency...6 Trading unit...6 Option premiums...6

More information

Trading around a position using covered calls

Trading around a position using covered calls Trading around a position using covered calls June 23, 2011 1 Trading around a position using covered calls June 23, 2011 June 23, 2011 2 Disclaimer This presentation is the creation of Roger Manzolini

More information

OPTIONS EDUCATION GLOBAL

OPTIONS EDUCATION GLOBAL OPTIONS EDUCATION GLOBAL TABLE OF CONTENTS Introduction What are FX Options? Trading 101 ITM, ATM and OTM Options Trading Strategies Glossary Contact Information 3 5 6 8 9 10 16 HIGH RISK WARNING: Before

More information

My Daily Trading Preparation. Establishing Risk Parameters and Positions

My Daily Trading Preparation. Establishing Risk Parameters and Positions My Daily Trading Preparation Establishing Risk Parameters and Positions My Trading Goals My goals have to be consistent with my trading plan each day. For stocks, I am primarily a long-only trader (and

More information

CME In a Low Interest Rate World, Is the Carry Trade Dead?

CME In a Low Interest Rate World, Is the Carry Trade Dead? CME In a Low Interest Rate World, Is the Carry Trade Dead? Timothy Morge, CTA and President Blackthorne Capital, Inc. Internet Presentation Sponsored by Interactive Brokers February 14, 2013 www.marketgeometry.com

More information

Earn income from your shares

Earn income from your shares Course 8: Earn income from your shares Module 8 Earn income from your shares Topic 1: Introduction... 3 The call writer's obligation... 4 Topic 2: Why write covered calls?... 6 Income... 6 Example... 6

More information

Pair Trading with Options

Pair Trading with Options Pair Trading with Options Jeff Donaldson, Ph.D., CFA University of Tampa Donald Flagg, Ph.D. University of Tampa Ashley Northrup University of Tampa Student Type of Research: Pedagogy Disciplines of Interest:

More information

WINNING STOCK & OPTION STRATEGIES

WINNING STOCK & OPTION STRATEGIES WINNING STOCK & OPTION STRATEGIES DISCLAIMER Although the author of this book is a professional trader, he is not a registered financial adviser or financial planner. The information presented in this

More information

A Message from author Dan O'Brien

A Message from author Dan O'Brien A Message from author Dan O'Brien Hi there. As the head educator and a mentor here at Trading Advantage I am excited to be a part of one of the largest schools for traders in the world. Located at the

More information

BINARY OPTIONS. Getting Started. Understanding. Lesson01. Basic Terminology. What are the basics involved in binary options trading?

BINARY OPTIONS. Getting Started. Understanding. Lesson01. Basic Terminology. What are the basics involved in binary options trading? Understanding BINARY OPTIONS Lesson01 Getting Started Basic Terminology Binary Options, sometimes called digital or fixed return options, is a simplified yet exciting method of trading the financial markets,

More information

MICHAEL HODGES AND BRETT COOPER

MICHAEL HODGES AND BRETT COOPER WHY COPY TRADE FOREX MICHAEL HODGES AND BRETT COOPER WHAT IS FOREX COPY TRADING Forex copy trading is a relatively new way of trading currency. It takes a lot of the risk and hassle out of trading and

More information

Underlier Filters Category Data Field Description

Underlier Filters Category Data Field Description Price//Capitalization Market Capitalization The market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share. Market Capitalization is not applicable

More information

Firststrike (1997 through 2007--no compounding)

Firststrike (1997 through 2007--no compounding) Firststrike (1997 through 2007--no compounding) --------------Rules for FIRSTSTRIKE ------------- On Monday morning @ 01:00 EST (00:00 Central Standard Time) note the opening price for GBP/USD. This will

More information

The SPX Size Advantage

The SPX Size Advantage SPX (SM) vs. SPY Advantage Series- Part II The SPX Size Advantage September 18, 2013 Presented by Marty Kearney @MartyKearney Disclosures Options involve risks and are not suitable for all investors. Prior

More information

Steve Meizinger. FX Options Pricing, what does it Mean?

Steve Meizinger. FX Options Pricing, what does it Mean? Steve Meizinger FX Options Pricing, what does it Mean? For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or

More information

Lake Hill Crude Oil Market Update

Lake Hill Crude Oil Market Update Lake Hill Crude Oil Market Update Oil markets are experiencing forced hedging, unwinds and de-risking by both producers and consumers, exacerbating the recent spike in volatility. This distressed trading

More information

ETF Trend Trading. Option Basics Part Two The Greeks

ETF Trend Trading. Option Basics Part Two The Greeks ETF Trend Trading Option Basics Part Two The Greeks Option Basics Separate Sections 1. Option Basics 2. The Greeks 3. Pricing 4. Types of Option Trades The Greeks A simple perspective on the 5 Greeks 1.

More information

Greg Flower Wealth Management. Discretionary Wealth Management

Greg Flower Wealth Management. Discretionary Wealth Management Greg Flower Wealth Management Discretionary Wealth Management Disclaimer The information included in this document, including any opinion, is based on various sources believed to be reliable, but its accuracy

More information

Buying Equity Call Options

Buying Equity Call Options Buying Equity Call Options Presented by The Options Industry Council 1-888-OPTIONS Equity Call Options Options involve risks and are not suitable for everyone. Prior to buying or selling options, an investor

More information

Understanding Options Gamma to Boost Returns. Maximizing Gamma. The Optimum Options for Accelerated Growth

Understanding Options Gamma to Boost Returns. Maximizing Gamma. The Optimum Options for Accelerated Growth Understanding Options Gamma to Boost Returns Maximizing Gamma The Optimum Options for Accelerated Growth Enhance Your Option Trading Returns by Maximizing Gamma Select the Optimum Options for Accelerated

More information

Fine-Tuning Your Money Management System

Fine-Tuning Your Money Management System Avoid The Risk Of Ruin Fine-Tuning Your Money Management System Acknowledge the risks in trading the markets by making sure your money management system is sound. hen you hear of someone making a huge

More information

Three Secrets For Profitable Straddle Trading

Three Secrets For Profitable Straddle Trading Three Secrets For Profitable Straddle Trading Introduction Welcome to our free report, "The Three Secrets To Profitable Straddle Trading". It's no secret that options have exploded in popularity over the

More information

Chapter 2.3. Technical Analysis: Technical Indicators

Chapter 2.3. Technical Analysis: Technical Indicators Chapter 2.3 Technical Analysis: Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, from time to time those charts may be speaking a language you

More information

Stuart McPhee s Trading Plan Template

Stuart McPhee s Trading Plan Template Stuart McPhee s Trading Plan Template Mindset * Right from the start you need to ask yourself whether you are prepared to work towards achieving a trading plan that will work. If yes, great! Many people

More information

Compare and Contrast of Option Decay Functions. Nick Rettig and Carl Zulauf *,**

Compare and Contrast of Option Decay Functions. Nick Rettig and Carl Zulauf *,** Compare and Contrast of Option Decay Functions Nick Rettig and Carl Zulauf *,** * Undergraduate Student (rettig.55@osu.edu) and Professor (zulauf.1@osu.edu) Department of Agricultural, Environmental, and

More information

The original purpose of futures contracts was to provide a facility for people to hedge their price risk.

The original purpose of futures contracts was to provide a facility for people to hedge their price risk. Futures Bas sicss Propex Derivatives Pty Ltd 2012 The information in this document and related documents and communication is intended for educational purposes only and does not constitute advice. Redistribution

More information

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS

MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS CLIENT SERVICE AGREEMENT Halifax New Zealand Limited Client Service Agreement Product Disclosure Statement for MARGIN FOREIGN EXCHANGE AND FOREIGN EXCHANGE OPTIONS Halifax New Zealand Limited Financial

More information

Section 1 - Dow Jones Index Options: Essential terms and definitions

Section 1 - Dow Jones Index Options: Essential terms and definitions 1 of 17 Section 1 - Dow Jones Index Options: Essential terms and definitions Download this in PDF format. In many ways index options are similar to options on individual stocks, so it is relatively easy

More information

Put and Call Options

Put and Call Options Maderas Golf Course, San Diego County, 9th hole. Your teacher brilliantly birdied this hole. He triple-bogied the one in the background. You should play golf to understand options because you learn how

More information

Forsa Equity Options Traded on the Kuwait Stock Exchange

Forsa Equity Options Traded on the Kuwait Stock Exchange Forsa Equity Options Traded on the Kuwait Stock Exchange Options are not suitable for everyone. In light of the risks associated with trading options, you should use them only if you are confident that

More information

Beginner s Guide to Stock Options

Beginner s Guide to Stock Options Beginner s Guide to Stock Options Chapters 1.1-1.7 www.trader.ge Stock Options Chapter 1.1 / Introduction Introduction Welcome to this Academy introduction to stock options course. In this course, we will

More information