The option trader s guide to probability volatility and timing phần 5 ppt

... that case, the loss is equal to the commissions paid for the trade. On the other hand, if the stock falls sharply, the losses can be substantial. The downside breakeven is equal to: higher strike ... debit), or $ 15: [ 25 – (5 × 2)] ÷ (2 – 1) – 0 = $ 15] . Losses begin to develop as the stock moves below the breakeven and are limited to the stock falling to ze...

Ngày tải lên: 09/08/2014, 16:20

... as Trea- sury bills and notes. This increases bank reserves, which increases the money supply and causes short-term interest rates to decrease. Reduced rates induce consumers and businesses to ... decreases. When there are less bank reserves, short-term interest rates increase. This means consumers and businesses have to pay the bank more in order to borrow money. Less bor...

Ngày tải lên: 09/08/2014, 16:20

... +70 to + 75 3 Strikes +80 to + 85 –80 to – 85 –80 to – 85 +80 to + 85 Out-of -the- Money 1 Strike + 35 to +40 – 35 to –40 – 35 to –40 + 35 to +40 2 Strikes + 25 to +30 – 25 to –30 – 25 to –30 + 25 to +30 3 Strikes ... predefined loss because the first loss is always the best. On the other hand, discipline gives you the impenetrable strength to ke...

Ngày tải lên: 09/08/2014, 16:20

... with a strike price of 55 . The stock falls to 45 and the trader decides he wants to short the stock from 55 . To make this happen he calls his broker and says that he wants to exercise this particular ... strike price of 55 . The stock rises to 65 and the trader decides she wants to own the stock. To make this happen she would call her broker and sa...

Ngày tải lên: 09/08/2014, 16:21

... rallies sharply. If the stock drops sharply, your choices are these: • Sell the stock, buy back the call, and exit the trade com- pletely to avoid additional losses. • Hold onto both positions and ... strategy. To un- derstand why, let s consider the primary benefit of this strategy as well as the worst-case scenario. Investors who use this strat- egy generally do so in a...

Ngày tải lên: 09/08/2014, 16:21

... EXCHANGES, OPTION BROKERS, OPTION SYMBOLS, AND OPTION VOLUME 255 Exchanges Options are traded at each of the exchanges listed in Tables B.1 and B.2. Table B.1 Stock and Stock Index Option Exchanges Exchange ... Those who succeed consistently in the long run are those who make the effort and take the time to learn the skills re- quired to achieve lasting success...

Ngày tải lên: 09/08/2014, 16:20

... investors a way to buy and sell shares that represent entire baskets of stocks. In the case of Spiders, the basket of stocks represents the companies included within the Standard & Poor s 50 0 ... rewards. Stories about the large sums of money to be made and the successes of the rich and famous inspire a desire to achieve the same level of financial success. J...

Ngày tải lên: 09/08/2014, 16:20