Transcript Slide 1
TRADING COURSE – SESSION 7 www.optionstradingiq.com © Copyright 2015. Options Trading IQ. All Rights reserved. 1 DISCLAIMER Any information contained in this presentation is for educational purposes only. Neither IQ Financial Services, LLC or Gavin McMaster are licensed financial advisors, registered investment advisors, or registered broker dealers. Neither do they provide investment advice, financial advice or make investment recommendations and they are not in the business of transacting trades. Nothing in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer to buy or sell by IQ Financial Services, LLC or Gavin McMaster of any particular security, transaction or investment. Any trades and / or results covered in this presentation may or may not be live trades. All trades and trading results are believed to be accurately presented. However, since the trades may not have been executed in the market, the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Therefore there can be no guarantee of accuracy or completeness. The risk of loss in trading securities and options in particular can be substantial. Customers must consider all relevant risk factors, including their own personal financial circumstances, before making any financial transaction. Options involve risk and are not suitable for all investors. See the Options Disclosure Document: Characteristics and Risks of Standardized Options, available from www.optionstradingiq.com/risks © Copyright 2015. Options Trading IQ. All Rights reserved. 2 OUTLINE Market Update / Charts TLT Diagonal Update Condor Update Trapdoor Update Bearish Butterfly and SPX Butterfly Discussion More Tips © Copyright 2015. Options Trading IQ. All Rights reserved. 3 TLT DIAGONAL UPDATE TLT Down Pretty Big Today Looks Unlikely We Will Drift Into Our Profit Zone Maybe Look To Exit Tomorrow © Copyright 2015. Options Trading IQ. All Rights reserved. 10 RUT CONDOR UPDATE P&L around $600 RVX Has Dropped From 24 to 21. -12.5% Delta Dollars -72,000 Short Call Delta 14 Short Calls 3.62% Away © Copyright 2015. Options Trading IQ. All Rights reserved. 11 RUT CONDOR UPDATE © Copyright 2015. Options Trading IQ. All Rights reserved. 12 RUT TRAPDOOR UPDATE No Adjustment So Far Delta Dollars -21,000 Short Call Delta 9 Short Calls 4.5% Away No Action Needed For Now © Copyright 2015. Options Trading IQ. All Rights reserved. 13 RUT TRAPDOOR UPDATE © Copyright 2015. Options Trading IQ. All Rights reserved. 14 RUT BEARISH BUTTERFLY Not An Ideal Entry – RSI 60 Rather Than 80 44 Days to Expiry First Add Point – at 1210 we add at 1190 Downside Add Point – at 1130 we add at 1150 © Copyright 2015. Options Trading IQ. All Rights reserved. 15 SPX PUT BUTTERFLY Hail Mary / Lottery Trade Only Risking $210 or 0.21% of Total Capital Need a Big Decline Maybe Jumped the Gun a Little If We Get a Big Rally? No Big Deal © Copyright 2015. Options Trading IQ. All Rights reserved. 16 SOME MORE TIPS Check Your Order Getting Good Fills Use Day Orders Rather than GTC Be Consistent Keep Good Records © Copyright 2015. Options Trading IQ. All Rights reserved. 17 USING STOPS Stop Orders Filled Way Out From Stop Price Stop Limits – Great! No More Issues….. Order Never Gets Filled on a Gap I Prefer Alerts © Copyright 2015. Options Trading IQ. All Rights reserved. 18 OPTION SETTLEMENT The exercise-settlement value, is calculated using the opening sales price in the primary market of each component security on the last business day before the expiration date. You can track the settlement price of the major indices using the following ticker symbols – SET for SPX, RLS for RUT and NDS for NDX. The settlement price determined on Friday is often different from the closing price of the index on Thursday when the market closes, which presents a risk to the investor holding the option into the settlement period. © Copyright 2015. Options Trading IQ. All Rights reserved. 19 OPTION SETTLEMENT © Copyright 2015. Options Trading IQ. All Rights reserved. 20 ANALYTICAL TOOLS Option Vue - $999 to $3,799 per year! Option Net Explorer – 500 GBP per year TOS and IB Risk Navigator © Copyright 2015. Options Trading IQ. All Rights reserved. 21 THANK YOU! www.optionstradingiq.com © Copyright 2015. Options Trading IQ. All Rights reserved. 26