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Year End Options Trading

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http://www.Options-Trading-Education.com - Year end options trading can be a time to cash in on predictable swings in stock prices. For example, portfolio managers may need to free up cash and may …

http://www.Options-Trading-Education.com - Year end options trading can be a time to cash in on predictable swings in stock prices. For example, portfolio managers may need to free up cash and may sell stocks before the end of the year. A sufficiently large sale or purchase of any given stock may well move the stock price. In year end options trading the trader seeks to anticipate such stock price movement and buy calls, buy puts, sell calls or sell puts accordingly. When to buy calls, when to buy puts, etc. will depend up both fundamental and technical analysis of the underlying stocks. Pertinent end of the month of December dates on the options calendar for year end options trading for 2011 are December 30 which is the quarterly options expiration date and December 26 which is the VIX expiration date. December 17 is the equity index, cash-settled currency and treasury/interest rate options expiration date. Traders are advised to double check the options calendar for time sensitive trading.

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  • 1. YEAR END OPTIONS TRADING CAN BE ATIME TO CASH IN ON PREDICTABLESWINGS IN STOCK PRICES. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 2. FOR EXAMPLE, PORTFOLIO MANAGERSMAY NEED TO FREE UP CASH AND MAYSELL STOCKS BEFORE THE END OF THEYEAR. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 3. A SUFFICIENTLY LARGE SALE ORPURCHASE OF ANY GIVEN STOCK MAYWELL MOVE THE STOCK PRICE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 4. IN YEAR END OPTIONS TRADING THETRADER SEEKS TO ANTICIPATE SUCHSTOCK PRICE MOVEMENT AND BUY CALLS,BUY PUTS, SELL CALLS OR SELL PUTSACCORDINGLY. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 5. WHEN TO BUY CALLS, WHEN TO BUYPUTS, ETC. WILL DEPEND UP BOTHFUNDAMENTAL AND TECHNICAL ANALYSISOF THE UNDERLYING STOCKS. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 6. PERTINENT END OF THE MONTH OFDECEMBER DATES ON THE OPTIONSCALENDAR FOR YEAR END OPTIONSTRADING FOR 2011 ARE DECEMBER 30WHICH IS THE QUARTERLY OPTIONSEXPIRATION DATE AND DECEMBER 26WHICH IS THE VIX EXPIRATION DATE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 7. DECEMBER 17 IS THE EQUITY INDEX, CASH-SETTLED CURRENCY ANDTREASURY/INTEREST RATE OPTIONSEXPIRATION DATE. TRADERS ARE ADVISEDTO DOUBLE CHECK THE OPTIONSCALENDAR FOR TIME SENSITIVE TRADING. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 8. NORMALLY OPTIONS TRADERS LOOK ATTHE PUT TO CALL RATIO, STOCKFUNDAMENTALS, OR TECHNICAL PRICEPATTERNS OF THE STOCKS WHOSEOPTIONS THEY TRADE. HOWEVER, YEAREND OPTIONS TRADING ALSO NEEDS TOTAKE INTO CONSIDERATION THE TAXCALENDAR AS WELL. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 9. WHEN TAX LAWS CHANGE INVESTORS MAYBUY OR SELL STOCK IN LARGE QUANTITIESIN ORDER TO TAKE ADVANTAGE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 10. PORTFOLIO MANAGERS (WE MENTIONEDTHOSE GUYS) LIKE TO SHOW NICE YEAREND PROFITS AND MAY SELL WINNINGSTOCKS AND HOLD CASH AT YEAR END INORDER TO AVOID UNEXPECTED MARKETVARIATIONS THAT COULD TARNISH THEIRPERFORMANCE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 11. IN AN UNCERTAIN YEAR END MARKETTRADERS MAY USE STRATEGIES SUCH AS ALONG STRADDLE IN ORDER TO LOCK INPROFITS NO MATTER WHICH WAY THEMARKET MOVES. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 12. NOTHING IN LIFE IS ABSOLUTELY CERTAINEXCEPT DEATH AND TAXES BUT THE ODDSARE USUALLY PRETTY GOOD THAT THEREWILL BE PROFITABLE YEAR END OPTIONSTRADING FOR THOSE WHO DO THEIRHOMEWORK AND WATCH THE MARKETSCLOSELY. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 13. WE ARE COMING OFF OF A VERY VOLATILEYEAR. SOME HAVE LOST MONEY ANDSOME HAVE GAINED. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 14. THOSE WHO HAVE LOST MAY CHOOSE TOSELL STOCK AND USE THEIR LOSSES FORTAX PURPOSES. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 15. AS WITH THE MONEY MANAGER SCENARIOWE MENTIONED ABOVE THE SALE OFSUFFICIENTLY LARGE BLOCKS OF STOCKCAN DRIVE PRICES, IN THIS CASE DOWN. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 16. THROUGHOUT THE YEAR WE HAVEWRITTEN ABOUT NETFLIX OPTIONS,BUYING CALLS ON CATERPILLAR, PUTS ONLINKEDIN AND MORE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 17. ANYONE WHO HAS TRADED OPTIONS ONTHESE STOCKS, OR SIMPLY DONE A BIT OFRESEARCH AND FOLLOWED UP, WILL BEAWARE OF WHICH STOCKS AND WHICHOPTIONS HAVE BEEN ACTIVE. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 18. HAVING DONE A BIT OR PRIOR RESEARCHWILL HELP THE OPTIONS TRADER PICKTHE RIGHT STOCKS FOR YEAR ENDOPTIONS TRADING. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 19. THEN THE JOB OF THE OPTIONS TRADER ISTO UPDATE HIS RESEARCH AND BE READYTO BUY OR SELL CALLS OR PUTSDEPENDING UPON THE RESULTS. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 20. AS ALWAYS WE ARE NOT SUGGESTINGTHAT ONE TRADE THE STOCKS OR OPTIONSON THE STOCKS LISTED BUT RATHER THATTHEY USE THE THOUGHTS ANDINFORMATION HERE TO DEVELOP APROFITABLE STRATEGY FOR YEAR ENDOPTIONS TRADING OR TRADINGTHROUGHOUT THE YEAR. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M
  • 21. FOR MORE INSIGHTS AND USEFULINFORMATION REGARDING OPTIONS ANDOPTIONS TRADING, VISIT WWW.OPTIONS-TRADING-EDUCATION.COM. W W W. O P T I O N S - T R A D I N G - E D U C AT I O N . C O M