WEEKLY OPTIONS TRADING REPORT
Each Tuesday the Weekly Options Trading Report gives you options trades based on measurable market criteria to help you exploit current market conditions in futures, index and commodities markets. Each trade is identified by type of position, has a trading plan, shows current Greeks and projected performance curves, and shows a Volatility Chart with a Price Chart superimposed.
Each recommended position:
A. Is identified by type of position
Speculative Directional – options position designed to take advantage of a trend or seasonal expectation.
Speculative Implied Volatility – options position designed to take advantage of high or low implied volatility.
Speculative Statistical Volatility – options position designed to take advantage of high or low statistical volatility.
Systematic – options positions that generally begin delta neutral and which evolve over time as adjustments are made in response to moves in the underlying commodity and changes in implied volatility.
B. Has a trading plan
The trading plan for Speculative positions will state when to close positions. The exit will be triggered when the underlying commodity moves to a specified level, when the position earns or loses a predetermined amount, or when a specific date has been reached.
The trading plan for Systematic positions, on the other hand, will specify adjustment points. Adjustments will be made to reduce exposure to market direction, to changes in implied volatility, or to negative time decay. An adjustment may close some options and add new options in their place or may leave existing positions in place and add new options to them.
C. Shows current Greeks and projected performance curves
The current Greeks show how a position will respond to rallies and declines (delta and gamma), to expanding and contracting implied volatility (vega), and to the passage of time (theta). OptionVue’s Graphic Analysis shows projected results over a range of underlying prices and over the passage of time.
D. Shows a Volatility Chart with a Price Chart superimposed
The Volatility Chart shows how implied and statistical volatility have fluctuated in the past and it shows their percentile ranking over the past six years. The Price Chart shows how the underlying commodity has behaved in the past. It’s a chart for a continuous contract. |
Weekly Options Trading Report
July - 07-27-10
July - 07-20-10
July - 07-13-10
July - 07-07-10
Upcoming Webinars
"Open Forum"
Sunday, August 8, 2010
12:00 p.m.-1:15 p.m. PT
(ET 3:00 p.m.- 4:15 p.m.)
Get answers to your options questions and see an analysis of the options positions you're interested in. Send your questions/positions to me via e-mail or save them for the live webinar. I'll address the issues you're interested in and, if appropriate, use OptionVue 6 software to analyze positions. This is also an opportunity to learn from the questions and issues raised by other traders.
Paul's Latest Instructional CD
Delta Neutral Trading - Premium Buying Strategies
Does market volatility give you knots in your stomach? Are you confused by technical indicators and just plain tired of being on the wrong side of the market? If you answered "yes" to any of these questions, then you'll want to get Paul's latest CD.
Paul teaches you how to use options spreads that benefit from market turbulence. Gone will be the days when you fret over the market . . . because the greater the volatility, the better. Of course, there are no free lunches, so he also teaches you how to balance negative time decay versus market movement and changes in implied volatility.
Purchase Now
|
