It is my pleasure to announce that Carley Garner will be joining us on Wednesday, October 10th @ 4:30 PM Eastern US to do a webinar presentation on Trading Options.
I've asked Carley to start us off with a very basic outline of options …
Carley will be discussing more advanced techniques in this webinar, including spreads and strategies. Some bullet points for the webinar include:
- Short options to finance long options
- Selling options to provide room for error in futures positions
- Trading debit spreads - Adjusting bull call and bear put spreads with additional premium collection
- Trading examples with risk and break even analysis
There will also be an extensive Q&A during the webinar.
Just saw the first video about two days ago. For those wondering, the general discussion/overview last time applies to stock options although she is definitely geared towards trading futures options. It will likely be the same this time around as well
The following user says Thank You to Bermudan Option for this post:
Carley, I wanted to ask if you could cover strategies for handling vertical spreads that have gotten into trouble. For example, let's say AAPL is trading at 450, and before the price moved down to this level we sold a 465/475 March put spread (STO 475 March Put, BTO 465 March Put). So both sides are now in the money. I know it's possible to roll those into the next month and hope to wait for a higher price to close out the position, or sell Call spreads at 480/490 to offset the losses from the bull spread, but how do you determine the best course of action and are there other alternatives?
I thought it was an interesting nice take on options on futures. I was surprised the greeks weren't as emphasized, but it isn't as much either in the "selling options on futures" thread; I guess when you're going way out on positions and not trying to net shorter term on weeklies or up to 60-90 days. Not really teaching trading setups as much as education but still well done. Her brokerage may be competitive to ThinkOrSwim's options on futures where they only offer some futures to trade options on and the commissions are usually higher than average. (Although the ThinkOrSwim desktop's position analysis graphing features are hard to beat )
I recall the question about trading "pure" options. Maybe the guy meant single leg options used in swing trading or daytrading. For daytrading, basically one can just use a close-to, at-the-money strike of an expiration month or weekly single call or put option with a high delta (usually above .30) to make use of the transient leverage. Then trading it similar to a leveraged futures contract. And of course be flat before end of the day session. Vikings had a journal where he did that.
Though not my style, I have decided to join Big Mike's Trading Journal forum. I am a professional daytrader who specializes in trading weeklies in 9 stocks (AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, SPY, QQQ, IWM). I also trade the ES and EUR/USD.
I …
The following user says Thank You to Cloudy for this post:
Interesting topic. Definitely makes me want to read up on Options a bit more.
One thing that I found interesting is that there was a lot more attention paid to credit spreads than debit spreads in general... likely because it is educational about Futures Options and Options on Futures are more expensive so debit spreads are often too expensive from a regular retail trader's perspective. THe presenter is definitely using the leverage in Futures in her trading strategy. I am not a big fan of credit ratio spreads on a futures contract to be honest though. I wouldn't say I am extremely risk averse but being naked a contract for 50 days (or the timeframe she suggests) would have me too anxious. That one black swan move and you are gonna be living out of cardboard box
I just heard it. I think he was talking about having an option position with an actual Futures contract as a leg vs having pure options position with a synthetic leg
Carley Garner, Senior Strategist and Broker at DeCarleyTrading, will be monitoring this thread so that she may answer any questions that you post here relating to DeCarleyTrading products and services or Options Trading in general.
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