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REPLAY: Round Table with Dr. Duke (Kerry Given)
Dr. Duke (Kerry Given) from Parkwood Capital talked about Option Trading Myths. Kerry reviewed how to calculate expected return.
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Options Trading for Income with John Locke for October 27, 2014
A great way to improve your trading results is by keeping up to date with the latest trading techniques and current market conditions!
Click HERE and join me every Monday at 9 AM EST for our free “Options Trading for Income” Webinars! Where you get expert analysis of the markets and the opportunity to follow along with the best options trading strategies in the business.
The Round Table with Dr. Duke on Thursday Oct 30th
Author Kerry Given, also known as “Dr. Duke”, from Parkwood Capital LLC, presents “Option Trading Myths” on Thursday October 30th at 6:00pm ET. Dr. Duke will show you if it's better to buy or sell options, if it's an advantage to be a market maker and the relationship between probabilities and option pricing.
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The Round Table with Marc Principato on Thursday Oct 23rd
Marc Principato, CMT, will show how to isolate high probability support or resistance levels and how to validate key reversals. Marc will discuss what option strategies to use for these conitions.
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Options Trading for Income with John Locke for October 20, 2014
This article originally appeared at www.lockeinyoursuccess.com.
A great way to improve your trading results is by keeping up to date with the latest trading techniques and current market conditions!
Click HERE and join me every Monday at 9 AM EST for our free “Options Trading for Income” Webinars! Where you get expert analysis of the markets and the opportunity to follow along with the best options trading strategies in the business.
Do You Know Your Greeks?
Anyone who’s looked at my trading style can clearly see I’m always short volatility. This often brings up the question, “Aren’t you scared that a rise in volatility is going to cause a loss?”
Scared? Not at all, but I am concerned. It’s true, at any moment something could happen that causes a huge volatility increase and yes I may indeed take a loss on a trade. I don’t like losses but if that happens, so what? Losses are part of trading and I’m aware of that risk when I go in. Therefore losses are included in my cash flow projections and do not present a problem.
What scares me is the traders who assume they are immune to volatility just because they’re in a calendar or diagonal.
Index Settlement Prices
If you've ever traded the major U.S. stock index options, you'll notice that trading stops on Thursday but the settlement price is calculated the next day. The way it is calculated can be confusing. For example, last Friday, the Russell 2000 Index (RUT) settled at 1101.49 but the range of prices during the day was from 1079.23 to 1099.44.
The settlement price was above the high of the day!
How was that possible?
It's due to the way the settlement prices are calculated. If you go to the CBOE's web page for the Russell 2000 Index Options, you'll see see a section titled “Settlement of Option Exercise.” This says:
“… The exercise settlement value (RLS) is calculated using the first (opening) reported sales price in the primary market of each component security on the last business day (usually a Friday) before the expiration date.”
If you try to lookup the settlement price during the day of settlement, you'll find that the RUT data takes a long time to post. That's because they have to wait for all 2000 stocks to trade, which can take hours.
REPLAY: Round Table with Joe Cusick
Joe Cusick, from TradingBlock (member FINRA | SIPC), spoke about “Swing Trading with Option Spreads.” Joe showed how he finds stocks with potential directional plays and constructs vertical spreads to take advantage of his directional opinion.
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REPLAY: Round Table with John Locke
John Locke, from Locke In Your Success, spoke about “M3 – The Road to Master.” John showed how his M3 butterfly trade works and stepped through an example trade ending on Oct 9th. This was similar to John's $600,000 trade that he closed for a +$40,000 profit, despite the large moves in the market.
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The Round Table with Joe Cusick on Thursday Oct 16th
Professional trader and option educator Joe Cusick from TradingBlock (member FINRA | SIPC), presents “Swing Trading with Option Spreads” on Thursday Oct 16th at 4:30pm ET. Joe will show you the do's and don'ts of two vertical option spread strategies:Bull Call and Bear Put Spreads. Learn when to deploy each defined-risk strategy and how to manage the position once you're live in the market.
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We hope to see you in the webinar on Thursday. It should be a good one.