Invest today .... Options options in
Hello everyone!
From my blog today trades in options on the U.S. market and 'landed on Forums .
Thanks so who is giving me this opportunity and hope to establish a good value for those who decide to follow me in this adventure.
Well, welcome to all who decide to follow!
Monday, July 23, 2007
Thursday, July 19, 2007
Treat Cough In 5 Month Old
timeless
Despite the title of this post, the options expire, not just ....
A key component of their price is determined by the "time value", ie 'what' value time "still has the option.
How do I know if a call is still value time? A fairly simple method is to see the price of the PUT has the same strike, same expiration. If this is zero, the" time value " is zero.
E 'this information useful? Well, yes, "murmurs" :-) that the probability of an option with no time value is almost close to 100%
Monday, July 16, 2007
Bump On Side Of Leg Muscle
options expiring in July!
Ok, that's' the last week of life of the options in July.
What to do? I held a couple of operations Credit to expire.
never carry positions in debt due to the effect of time decay on the price of the options.
So ... I have the cane in bullput on CROX, and 25 strike put on MAT. MAT has also scheduled
Today 's earnings release , if things go as I think they go, the PUT 25 will devalue even more'. However I try not to bring to an end the trade, 'cause if GAP Thursday or Friday, I'm in trouble'. CROX
on the matter and 'delicate ... and the title 'to 50 cents from BEP and that' just above support. Let's see how it goes today, tomorrow the limit, and then as already 'said the little grossed close loss.
Ok, that's' the last week of life of the options in July.
What to do? I held a couple of operations Credit to expire.
never carry positions in debt due to the effect of time decay on the price of the options.
So ... I have the cane in bullput on CROX, and 25 strike put on MAT. MAT has also scheduled
Today 's earnings release , if things go as I think they go, the PUT 25 will devalue even more'. However I try not to bring to an end the trade, 'cause if GAP Thursday or Friday, I'm in trouble'. CROX
on the matter and 'delicate ... and the title 'to 50 cents from BEP and that' just above support. Let's see how it goes today, tomorrow the limit, and then as already 'said the little grossed close loss.
Friday, July 13, 2007
How Many Navy Eod's Die
Options: Margins on CROX
section provides an interesting contribution on Margins Interactive Brokers, and TWS (Trader Work Station) posted in a mailing list to which they are writing. Officials with the permission of the author
Mauro
- the "margin requirements" can be considered as a claim that the Options Clearing Corporation grants to encourage the exchange of options, according to a code of regulations (Reg-T ) that the brokers agree to pass on to their customers. Obviously, this "credit" applies to those who made the request at the time of registration, and not for those who has established a regulation for "cash";
- margins are strategic comfortable especially in the case of sale of an option, that having risk margins tending to infinity, it can take a lot of money in the account to cover, especially if not accompanied by a similar option to buy, how in the calendar - you can check the cost in terms of margins of the execution of each leg (not the combo) by right-clicking on the order line to be transmitted (the one that is still the "T") and just selecting "Check Margin". For the combo you should use the other voice "What-If", but I've never understood how it works, and if anyone knows anything, his explanation is welcome;
- in the terminology of IB, this cost consists of a change in "Maintenance Margin", which roughly measures the current level of risk exposure. Because the operation is eeguibile, it must be that this parameter is less than the '"with Equity Loan", but that more broadly measure the capital currently available. This difference appears in IB under the name of "Excess Liquidity" and must always be positive, not only after each transaction, but especially within the Italian 15:40 the next day, a term beyond which IB will make a liquidation of the portfolio until that this difference does not return to positive
- is still a sufficient positive balance of even a few dollars, I have a few months ago I get by a week with a balance of $ 112, obviously without being able to buy a lot because I lowered the 'Equity with Loan "I got up and sell the" Maint. margin. " In practice, the only operations allowed in this case are the repurchase of options sold (to lower the "Maint. Margin") or the resale of options already in the portfolio and dry, that is not linked to other options sold, which would otherwise remain uncovered back the starting point. It is therefore not true that we have the $ 2000 of which someone else has spoken, and I think they are only required to open an account from scratch. There would be other things to say, account management and other items that need to be careful, but I hope however, have contributed to a bit 'of chiarezza.Concludo with a little trick that is very useful to me: TWS allows you to constantly keep an eye on some important parameters, as well as the price of the shares that concern us most.
Just go to Configure -> Global configuration -> Trader dashboard -> Add Account Data (or Symbol). To view, you should then be in Site -> Trader dashboard -> Show.
section provides an interesting contribution on Margins Interactive Brokers, and TWS (Trader Work Station) posted in a mailing list to which they are writing. Officials with the permission of the author
Mauro
- the "margin requirements" can be considered as a claim that the Options Clearing Corporation grants to encourage the exchange of options, according to a code of regulations (Reg-T ) that the brokers agree to pass on to their customers. Obviously, this "credit" applies to those who made the request at the time of registration, and not for those who has established a regulation for "cash";
- margins are strategic comfortable especially in the case of sale of an option, that having risk margins tending to infinity, it can take a lot of money in the account to cover, especially if not accompanied by a similar option to buy, how in the calendar - you can check the cost in terms of margins of the execution of each leg (not the combo) by right-clicking on the order line to be transmitted (the one that is still the "T") and just selecting "Check Margin". For the combo you should use the other voice "What-If", but I've never understood how it works, and if anyone knows anything, his explanation is welcome;
- in the terminology of IB, this cost consists of a change in "Maintenance Margin", which roughly measures the current level of risk exposure. Because the operation is eeguibile, it must be that this parameter is less than the '"with Equity Loan", but that more broadly measure the capital currently available. This difference appears in IB under the name of "Excess Liquidity" and must always be positive, not only after each transaction, but especially within the Italian 15:40 the next day, a term beyond which IB will make a liquidation of the portfolio until that this difference does not return to positive
- is still a sufficient positive balance of even a few dollars, I have a few months ago I get by a week with a balance of $ 112, obviously without being able to buy a lot because I lowered the 'Equity with Loan "I got up and sell the" Maint. margin. " In practice, the only operations allowed in this case are the repurchase of options sold (to lower the "Maint. Margin") or the resale of options already in the portfolio and dry, that is not linked to other options sold, which would otherwise remain uncovered back the starting point. It is therefore not true that we have the $ 2000 of which someone else has spoken, and I think they are only required to open an account from scratch. There would be other things to say, account management and other items that need to be careful, but I hope however, have contributed to a bit 'of chiarezza.Concludo with a little trick that is very useful to me: TWS allows you to constantly keep an eye on some important parameters, as well as the price of the shares that concern us most.
Just go to Configure -> Global configuration -> Trader dashboard -> Add Account Data (or Symbol). To view, you should then be in Site -> Trader dashboard -> Show.
Thursday, July 12, 2007
Soul Silver Anti Freeze Patch English
CROX Title:
Opening Date 07/11/2007 ($ 48.58) 47.5
S Jul07 45 Jul07 B
Opening Date 07/11/2007 ($ 48.58) 47.5
S Jul07 45 Jul07 B
Put Put
Max Risk: $ 172.00
Max Profit: $ 78
Max Profit / High Risk: 45
% BEP: $ 46.72
Max Risk: $ 172.00
Max Profit: $ 78
Max Profit / High Risk: 45
% BEP: $ 46.72
Rational Input
The title has a strong upward trend, has been hesitant because the last few days probably 'The vice president has exercised his stock options ( laws), but the 9 / 7 perforated resistance, and, as from academia, this is now' become a medium. O I hope that it is for a few days:)
The quarterly data are reported after the expiration of July options, so I expect to exit the trade before any large movement of the title. The volatility 'implied' high
though not the highest, and falling.
exit strategy:
to 80% profit 4-or 5 days before the deadline. If he touches the BEP go out collecting any leakage.
A bull put and 'theta and vega-+, so I expect to earn from both the short lifetime of the option, volatility is the' implied that it should fall.
Wednesday, July 11, 2007
How Much Is An Infiniti G35
Bull Put Option ... what? Trading in Team
From wikipedia: In finance the term option means that particular type of derivative title that gives the holder the right but not the obligation, to buy or sell the security on which the option itself is written, called underlying instrument at a specified price (strike price) and at or before a certain date.
Ok, that '? In a nutshell?
Options are contracts that entitle it to those who bought them to do "something " on a "good ," to a certain price "within" a certain date .
" something 'can be bought or sold, depending on the type of contract
" well, "also said below can' be virtually anything: stocks, grain, oil, gold, temperature (!)
"a price" or strike price (strike price) and 'the price at which the option holder can buy or sell the "good "
"date" is the date of expiry of the option. After this date the option and 'paper and becomes part of the statistics:)
Options can be either American or European does not mean which are traded in America or Europe, but simply with the first one may exercise the right at any time during the life of the option, for the latter, only at maturity.
By the way I deal with only the American type.
I note examples of options that are present continuously in the life of every day: booking a trip, the compromise for the purchase of a home, insurance, RC Cars etc. ..
I wrote that the option is a contract, that 'means that for each option there are two parties: a purchaser (buyer) and seller (writer or seller). Then there is an option to buy
'need someone who is willing to sign this contract.
Before the "conclusion" of this contract, the option simply does not exist (as opposed to shares), and while the buyer acquires a right, the seller is committed (and therefore takes on an obligation) to do this' which provides option where the buyer would exercise the right purchase.
From wikipedia: In finance the term option means that particular type of derivative title that gives the holder the right but not the obligation, to buy or sell the security on which the option itself is written, called underlying instrument at a specified price (strike price) and at or before a certain date.
Ok, that '? In a nutshell?
Options are contracts that entitle it to those who bought them to do "something " on a "good ," to a certain price "within" a certain date .
" something 'can be bought or sold, depending on the type of contract
" well, "also said below can' be virtually anything: stocks, grain, oil, gold, temperature (!)
"a price" or strike price (strike price) and 'the price at which the option holder can buy or sell the "good "
"date" is the date of expiry of the option. After this date the option and 'paper and becomes part of the statistics:)
Options can be either American or European does not mean which are traded in America or Europe, but simply with the first one may exercise the right at any time during the life of the option, for the latter, only at maturity.
By the way I deal with only the American type.
I note examples of options that are present continuously in the life of every day: booking a trip, the compromise for the purchase of a home, insurance, RC Cars etc. ..
I wrote that the option is a contract, that 'means that for each option there are two parties: a purchaser (buyer) and seller (writer or seller). Then there is an option to buy
'need someone who is willing to sign this contract.
Before the "conclusion" of this contract, the option simply does not exist (as opposed to shares), and while the buyer acquires a right, the seller is committed (and therefore takes on an obligation) to do this' which provides option where the buyer would exercise the right purchase.
Tuesday, July 10, 2007
Emerald Tree Boa For Sale
I believe that teamwork is essential. And this also applies to the activities 'of trading, although one might think that this is an activity' alone.
Late last year I found a nice little group with which to trade: uno faceva analisi tecnica, mentre l'altro dava uno sguardo a news e catalyst (earnings etc..), un altro controllava le volatilita', un altro faceva lo sciamano con ProfitSource :) ...
Insomma ognuno metteva a disposizione del team i propri skills e si valutava insieme l'opportunita' di entrare o meno in un trade e quando uscire.
E poi... parlando francamente... vuoi mettere il potersi vantare con qualcuno della buona riuscita di un'operazione??? :)
Da quando per vari motivi il gruppetto si e' sfaldato, devo ammettere che anche una buona parte di divertimento e' andata via.
Ma io non desisto... le opzioni sono la mia passione :)
Labeled Viking Ships Diagram
GOOG Analytics
Now use Google Analytics to get some statistics on blog entries. So this post aa
do with google, but not with his ticker (GOOG):)
Google wants you to enter this notice (bah, I've never read any site that uses Google Analytics):
" This website uses Google Analytics, a web analytics service provided by Google, Inc. ("Google"). Analytics uses "cookies", which are text files that are stored on your computer to help the website analyze how users use the site. The information generated dal cookie sull'utilizzo del sito web da parte Vostra (compreso il Vostro indirizzo IP) verranno trasmesse a, e depositate presso i server di Google negli Stati Uniti. Google utilizzerà queste informazioni allo scopo di tracciare e esaminare il Vostro utilizzo del sito web, compilare report sulle attività del sito web per gli operatori del sito web e fornire altri servizi relativi alle attività del sito web e all'utilizzo di Internet. Google può anche trasferire queste informazioni a terzi ove ciò sia imposto dalla legge o laddove tali terzi trattino le suddette informazioni per conto di Google. Google non assocerà il vostro indirizzo IP a nessun altro dato posseduto da Google. Potete rifiutarvi di usare i cookies selezionando l'impostazione appropriata sul vostro browser, ma ciò potrebbe impedirvi di utilizzare tutte le funzionalità di questo sito web. Utilizzando il presente sito web, voi acconsentite al trattamento dei Vostri dati da parte di Google per le modalità e i fini sopraindicati".
Now use Google Analytics to get some statistics on blog entries. So this post aa
do with google, but not with his ticker (GOOG):)
Google wants you to enter this notice (bah, I've never read any site that uses Google Analytics):
" This website uses Google Analytics, a web analytics service provided by Google, Inc. ("Google"). Analytics uses "cookies", which are text files that are stored on your computer to help the website analyze how users use the site. The information generated dal cookie sull'utilizzo del sito web da parte Vostra (compreso il Vostro indirizzo IP) verranno trasmesse a, e depositate presso i server di Google negli Stati Uniti. Google utilizzerà queste informazioni allo scopo di tracciare e esaminare il Vostro utilizzo del sito web, compilare report sulle attività del sito web per gli operatori del sito web e fornire altri servizi relativi alle attività del sito web e all'utilizzo di Internet. Google può anche trasferire queste informazioni a terzi ove ciò sia imposto dalla legge o laddove tali terzi trattino le suddette informazioni per conto di Google. Google non assocerà il vostro indirizzo IP a nessun altro dato posseduto da Google. Potete rifiutarvi di usare i cookies selezionando l'impostazione appropriata sul vostro browser, ma ciò potrebbe impedirvi di utilizzare tutte le funzionalità di questo sito web. Utilizzando il presente sito web, voi acconsentite al trattamento dei Vostri dati da parte di Google per le modalità e i fini sopraindicati".
Monday, July 9, 2007
The Doujin Brown Skinned
Mattel (MAT) 25 Put Option Trade Finder Jul07
Ormai mancano una manciata di giorni alla scadenza di luglio.
In tempi non sospetti ho venduto PUT 25 su MAT, scadenza luglio, ovviamente coperto da PUT 20 (settembre).
Devo dire che MAT mi sta facendo un po' "strippare", finiranno ITM le mie PUT? The thing I hate to put a little since I sold 25 to lower the risk of my strangle. Close loss in this trade, would be to increase the risk of strangles, rather than reduce it. The
12 / 6 has drilled the support of $ 26, support then tested in the following days until the title went down to $ 25.14, then rebounded. Friday it closed at $ 25.90, will be able to break through the resistance (former support)? If this happens I think the flies of the 25 put would decrease, combined with the time decay that could bring down the price of the put option, which would allow me to repurchase them at an extremely valuable low and not wait for the deadline.
In tempi non sospetti ho venduto PUT 25 su MAT, scadenza luglio, ovviamente coperto da PUT 20 (settembre).
Devo dire che MAT mi sta facendo un po' "strippare", finiranno ITM le mie PUT? The thing I hate to put a little since I sold 25 to lower the risk of my strangle. Close loss in this trade, would be to increase the risk of strangles, rather than reduce it. The
12 / 6 has drilled the support of $ 26, support then tested in the following days until the title went down to $ 25.14, then rebounded. Friday it closed at $ 25.90, will be able to break through the resistance (former support)? If this happens I think the flies of the 25 put would decrease, combined with the time decay that could bring down the price of the put option, which would allow me to repurchase them at an extremely valuable low and not wait for the deadline.
White Lump On Outside Of Lip Piercing
Yahoo
finder The option trade is one of the tools made available by Yahoo! Finance.
Yahoo! Finance is indeed a unique source of financial information, listings and more on the U.S. market or not.
But perhaps not everyone knows is that Yahoo has a section on options!
The site is located at this link: http://biz.yahoo.com/opt/ and is very informative and interesting tool: rankers, news, glossary, etc. ..
As I said, one of the tools is the option trade finder, allows setting a title, the sentiment trend and volatility implied to search through a number of default strategies.
The tool shown in the chart risk / return, Greek, BEP (break event point), etc ...
The figure is shown in a strangle on MAT
The service relies on the services offered by Optionetics.
finder The option trade is one of the tools made available by Yahoo! Finance.
Yahoo! Finance is indeed a unique source of financial information, listings and more on the U.S. market or not.
But perhaps not everyone knows is that Yahoo has a section on options!
The site is located at this link: http://biz.yahoo.com/opt/ and is very informative and interesting tool: rankers, news, glossary, etc. ..
As I said, one of the tools is the option trade finder, allows setting a title, the sentiment trend and volatility implied to search through a number of default strategies.
The tool shown in the chart risk / return, Greek, BEP (break event point), etc ...
The figure is shown in a strangle on MAT
The service relies on the services offered by Optionetics.
Sunday, July 8, 2007
What Is A Good Alternative Love Song
Myrton Robert Merton and Scholes: Even the Nobel lose
Speaking of Black, Scholes and Merton here is an 'interesting reading:
Even the Nobel forgiveness. Ideas, people and events of finance .
the series ... between saying and doing ... :)
A book that I intend to read soon.
Speaking of Black, Scholes and Merton here is an 'interesting reading:
Even the Nobel forgiveness. Ideas, people and events of finance .
the series ... between saying and doing ... :)
A book that I intend to read soon.
Peeing Alot And Lower Stomach Pain
price option and a Black-Scholes equation
The prices of derivatives, including options, can be determined using some mathematical models that allow you to obtain a theoretical price of the instrument.
These formulas are quite complex and start from some assumptions that often do not occur in the real market.
Certainly one of the most popular is the 'Black-Scholes equation . Looking at these
formulas can not amaze those who assert that make trading in the options is "complicated."
also looking on the net is not a "simplification" practice of such theories (theories of why we are talking about), and formulas. A little 'as someone you are looking for the formula to calculate the area of \u200b\u200ba rectangle, are the only explanation Geomet (higher education) that says that the rectangle is the integral over bla bla bla, we all know that when multiplying "Base x Height" we get the desired result.
So what? What to do? Considering that
:
PrezzoOpzione = f (stock price, strike price, time, implied volatility, interest rate)
I use this simplification mnemonic:
P = VI + I * t
(I know now that everything will turn up their nose)
I need to remember that the option price depends on the intrinsic value (VI), that 'the difference between the price of the underlying and the strike price, the implied volatility (vi) and the remaining time before the expiry of the option.
I know that the option price and the Underlying are not related in a linear (otherwise the formula would be reversed), but as I say, is a simplification that helps me to be considered as impacting on the price of the option, the three variables most important (not counting the interest rate for convenience).
From this simplified formula can be deduced immediately, for example, that a small variation of "there" affects much more than the price of an option to expire 60 days which expired on 30 days, with the same strike price and below., while a change in VI, impact equally on all options with the same strike but different maturities.
And the theoretical price of the model? Well, that's certainly useful to know if the option is below (or above) the price and I need a sotware to calculate it (those of you who do square roots by hand?:)), But in the end, as always ... is the market that decides!
PS: follow up post as the price is influenced by the variables depending on the strike price (ATM, OTM, ITM)
The prices of derivatives, including options, can be determined using some mathematical models that allow you to obtain a theoretical price of the instrument.
These formulas are quite complex and start from some assumptions that often do not occur in the real market.
Certainly one of the most popular is the 'Black-Scholes equation . Looking at these
formulas can not amaze those who assert that make trading in the options is "complicated."
also looking on the net is not a "simplification" practice of such theories (theories of why we are talking about), and formulas. A little 'as someone you are looking for the formula to calculate the area of \u200b\u200ba rectangle, are the only explanation Geomet (higher education) that says that the rectangle is the integral over bla bla bla, we all know that when multiplying "Base x Height" we get the desired result.
So what? What to do? Considering that
:
PrezzoOpzione = f (stock price, strike price, time, implied volatility, interest rate)
I use this simplification mnemonic:
P = VI + I * t
(I know now that everything will turn up their nose)
I need to remember that the option price depends on the intrinsic value (VI), that 'the difference between the price of the underlying and the strike price, the implied volatility (vi) and the remaining time before the expiry of the option.
I know that the option price and the Underlying are not related in a linear (otherwise the formula would be reversed), but as I say, is a simplification that helps me to be considered as impacting on the price of the option, the three variables most important (not counting the interest rate for convenience).
From this simplified formula can be deduced immediately, for example, that a small variation of "there" affects much more than the price of an option to expire 60 days which expired on 30 days, with the same strike price and below., while a change in VI, impact equally on all options with the same strike but different maturities.
And the theoretical price of the model? Well, that's certainly useful to know if the option is below (or above) the price and I need a sotware to calculate it (those of you who do square roots by hand?:)), But in the end, as always ... is the market that decides!
PS: follow up post as the price is influenced by the variables depending on the strike price (ATM, OTM, ITM)
Tuesday, July 3, 2007
1987 Thunderbird Turbocoupe For Sale
Holidays (U.S.)
Okay, okay, I admit ... I was caught off guard ...
half day today and tomorrow VACATION.
I had completely forgotten ... Oh well ... I approfitteranoo my positions theta +:)
Okay, okay, I admit ... I was caught off guard ...
half day today and tomorrow VACATION.
I had completely forgotten ... Oh well ... I approfitteranoo my positions theta +:)
Thursday, June 28, 2007
Steam A Projection Screen
Sims 3 Better Nipples
NFLD: how is it over? Slippage in
Out of curiosity I went to see how it goes NFLD lately.
I was shocked:
closed today at $ 1.40
But what is' success on December 20?
quote:
"The company Reported at higher-than-expected death rate in a study for the ITS PolyHeme blood substitute product." (The article is here ). So it seems that this blood substitute has been a fiasco.
And the day 23 / 5? Nothing, as they say in Rome, "there countering:" Blood Substitute Fails in Study of Trauma Patients "(link here )
I must be honest ... I was lucky with my bull put
:)
Out of curiosity I went to see how it goes NFLD lately.
I was shocked:
closed today at $ 1.40
But what is' success on December 20?
quote:
"The company Reported at higher-than-expected death rate in a study for the ITS PolyHeme blood substitute product." (The article is here ). So it seems that this blood substitute has been a fiasco.
And the day 23 / 5? Nothing, as they say in Rome, "there countering:" Blood Substitute Fails in Study of Trauma Patients "(link here )
I must be honest ... I was lucky with my bull put
:)
Tuesday, June 26, 2007
Neon Widget Alarm And Chimes
Combo Order of Interactive Brokers (IB)
In a mailing list to which they are registered, a person asked how one could change the slippage of the individual legs on orders "combo" with the TWS of Interactive Brokers.
Here is the answer I gave:
as I know you can not set a price for each leg of the combo, but only
complete the combo. IB will try 'to execute your order at best.
An example: Want to open a
bullput with a credit of $ 75.
then you will say to the IB to sell the combo to 0.75.
IB will attempt 'to buy and sell options in the combo so that the
result of the transaction is a credit of $ 75. In fact if you go to see in the window
"Executions" on what was sold / bought the options you'll see
values \u200b\u200b"strange" but that combined give just $ 75. For example, you will find the option
that bought and sold 1.32 to 0.57.
Furthermore, for the strategy does not matter what you buy / sell the individual legs, but the price of the combo taken as a whole. In fact, if
recalculations, returning above example, the chart risk / return and the BEP will see that these do not change.
So, I think is important, especially with simple strategies such
credit / debit spread, concerned about the slippage on the individual legs.
PS: If someone wants to add something ... and 'welcome! :)
In a mailing list to which they are registered, a person asked how one could change the slippage of the individual legs on orders "combo" with the TWS of Interactive Brokers.
Here is the answer I gave:
as I know you can not set a price for each leg of the combo, but only
complete the combo. IB will try 'to execute your order at best.
An example: Want to open a
bullput with a credit of $ 75.
then you will say to the IB to sell the combo to 0.75.
IB will attempt 'to buy and sell options in the combo so that the
result of the transaction is a credit of $ 75. In fact if you go to see in the window
"Executions" on what was sold / bought the options you'll see
values \u200b\u200b"strange" but that combined give just $ 75. For example, you will find the option
that bought and sold 1.32 to 0.57.
Furthermore, for the strategy does not matter what you buy / sell the individual legs, but the price of the combo taken as a whole. In fact, if
recalculations, returning above example, the chart risk / return and the BEP will see that these do not change.
So, I think is important, especially with simple strategies such
credit / debit spread, concerned about the slippage on the individual legs.
PS: If someone wants to add something ... and 'welcome! :)
Monday, June 25, 2007
Watch Southpark Online Free Uncensored
so hot (option)!
The heat of these days reminds me of an article I read last year: Introduction To Weather Derivatives or the ability to trade on TEMPERATURE:)
For real sick Options:):)
The heat of these days reminds me of an article I read last year: Introduction To Weather Derivatives or the ability to trade on TEMPERATURE:)
For real sick Options:):)
Tuesday, May 15, 2007
Goldwell Color Chart 7n Images
Bull Put on DNDN: When greed is bad!
On April 5 I find a good way to make a Bull Put: DNDN, Dendreon Corp. or the
On April 2 it starts a rumor that eventually the FDA will approve a cancer vaccine that Dendreon has developed. Also on April 2
the title makes a nice jump on rising from $ 5.22 to $ 12.93 on 147%!
In the following days there 'a retracement, so I dedicate to enter.
How? I decide to put a bull view that implied volatility is sky high.
agreed on the approach, which strike and maturity to choose?
So we see, due April, between 15 days: DNDN
Title:
Opening Date 04/05/2007
S1 Apr07 Apr07 B1
15 Put@0.7 $ 05.12 $ Put@0.3
Crete: $ 40 to position
Max Risk: 210 U.S. dollars a position
BEP inf: 14.60 USD
Max Profit / Max Risk: 19%
19% in 15 days not bad, but you can 'do better.
And here's the greed in action:
if instead of April, May you picked: 15
S1 May07 May07 B1
Put@3.5 $ 05.12 $ Put@2.3
Crete: $ 120 Location
Max Risk: $ 130 Location
BEP inf: $ 13.80
Max Profit / Max Risk: 92%
I threw myself on the second trade, of course. Ma ..
If I read correctly the rumors and news, I would agree that the FDA has not approved the drug, it is rumored that only he will.
Let's see how they went the two trade:
April:
volatility does not drop, a sign that the market expects something.
Generally the bull put the close when I reached 80% profit, and would rather not bring to an end.
However, due to the volatility are forced to wait for ... and in fact the options expire worthless, OTM, and I bring home all the prize.
May:
How birds fly above the implicit not set, but this time, alas, there 's just time to occur because what the market fears.
In fact, the 9 / 5, the FDA has announced that
need more information about this medication, and the price of Dendreon falls dangerously, any day of 64.32%, from $ 17.74 to $ 6.43 . Obviously, my bull is put to air and I spout the max risk, buying back the combo at $ 250 (difference between the two strikes - credit received)
On April 5 I find a good way to make a Bull Put: DNDN, Dendreon Corp. or the
On April 2 it starts a rumor that eventually the FDA will approve a cancer vaccine that Dendreon has developed. Also on April 2
the title makes a nice jump on rising from $ 5.22 to $ 12.93 on 147%!
In the following days there 'a retracement, so I dedicate to enter.
How? I decide to put a bull view that implied volatility is sky high.
agreed on the approach, which strike and maturity to choose?
So we see, due April, between 15 days: DNDN
Title:
Opening Date 04/05/2007
S1 Apr07 Apr07 B1
15 Put@0.7 $ 05.12 $ Put@0.3
Crete: $ 40 to position
Max Risk: 210 U.S. dollars a position
BEP inf: 14.60 USD
Max Profit / Max Risk: 19%
19% in 15 days not bad, but you can 'do better.
And here's the greed in action:
if instead of April, May you picked: 15
S1 May07 May07 B1
Put@3.5 $ 05.12 $ Put@2.3
Crete: $ 120 Location
Max Risk: $ 130 Location
BEP inf: $ 13.80
Max Profit / Max Risk: 92%
I threw myself on the second trade, of course. Ma ..
If I read correctly the rumors and news, I would agree that the FDA has not approved the drug, it is rumored that only he will.
Let's see how they went the two trade:
April:
volatility does not drop, a sign that the market expects something.
Generally the bull put the close when I reached 80% profit, and would rather not bring to an end.
However, due to the volatility are forced to wait for ... and in fact the options expire worthless, OTM, and I bring home all the prize.
May:
How birds fly above the implicit not set, but this time, alas, there 's just time to occur because what the market fears.
In fact, the 9 / 5, the FDA has announced that
need more information about this medication, and the price of Dendreon falls dangerously, any day of 64.32%, from $ 17.74 to $ 6.43 . Obviously, my bull is put to air and I spout the max risk, buying back the combo at $ 250 (difference between the two strikes - credit received)
Tuesday, March 20, 2007
Briggs And Stratton Throttle Cable Diagram
EMC: trade interesting
EMC Title:
Opening Date 29/12/2006 ($ 13.29)
Call
B1 B1 13 Apr07 Apr07 13 Put
Max Risk: $ 145.00
Rational Input
A friend of mine who ProfitSource (a tool for the analysis technique based on wave theory elliot), said that EMC would go under $ 13 by the end of March.
Ok, but since the VI is low, I buy a straddle
exit strategy:
Wait until late March, however, then go close to not lose too much time value.
If I make a profit before I try to consolidate, reducing the risk.
I do not have long to wait.
On January 10, in fact the title arrives at 14:36, and my 13th call I am going to straddle the profit.
What to do? Profitsource trust in, and decided to terminate the call and remain with the put, the more so at this point is a free-trade risk.
summary: Put a
13 Min $ 35 profit
Current Profit: $ 55
On March 7, I get a better idea: since I put expires in April, I can do about it? The answer
'.. YES.
EMC and 'to 13.05, sell a put option on March 13, and transform it into a calendar ATM, free trade.
The March 16 put option expires ITM in March of 0.01 cents (12.99)!
and are exercised ...
Not bad I took all the credit of the put option sold and I still put in April. If on Monday following a disaster were to happen (gap) would be protected.
But it is not. On Monday I can sell the underlying at 13.07 and close the position PUT.
Total profit of the trade: $ 90 in less than 3 months
EMC Title:
Opening Date 29/12/2006 ($ 13.29)
Call
B1 B1 13 Apr07 Apr07 13 Put
Max Risk: $ 145.00
Rational Input
A friend of mine who ProfitSource (a tool for the analysis technique based on wave theory elliot), said that EMC would go under $ 13 by the end of March.
Ok, but since the VI is low, I buy a straddle
exit strategy:
Wait until late March, however, then go close to not lose too much time value.
If I make a profit before I try to consolidate, reducing the risk.
I do not have long to wait.
On January 10, in fact the title arrives at 14:36, and my 13th call I am going to straddle the profit.
What to do? Profitsource trust in, and decided to terminate the call and remain with the put, the more so at this point is a free-trade risk.
summary: Put a
13 Min $ 35 profit
Current Profit: $ 55
On March 7, I get a better idea: since I put expires in April, I can do about it? The answer
'.. YES.
EMC and 'to 13.05, sell a put option on March 13, and transform it into a calendar ATM, free trade.
The March 16 put option expires ITM in March of 0.01 cents (12.99)!
and are exercised ...
Not bad I took all the credit of the put option sold and I still put in April. If on Monday following a disaster were to happen (gap) would be protected.
But it is not. On Monday I can sell the underlying at 13.07 and close the position PUT.
Total profit of the trade: $ 90 in less than 3 months
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