1. Options & Day Trading
A Crash Course - by Eli Nichtberger - April 21, 2015
2015 ELIeN Group LLC. All Rights Reserved.
2. Disclosure / Risk Warning
2015 ELIeN Group LLC. All Rights Reserved.
● The material in this slideshow presentation is for reference and informational purposes only
and is neither an offer nor a solicitation to purchase or sell any security. None of the
information provided in this presentation constitutes a recommendation that any investment
is suitable for any person. Persons viewing these slides should consult with their financial
advisors before making any investment decision
● The risk of loss in trading options contracts can be substantial, and therefore investors should
understand the risks involved in taking leveraged positions and must assume responsibility for
the risks associated with such investments and for their results.
● Any opinions, news, research, analyses, prices, or other information contained on this
presentation are provided as general market commentary for informational purposes only,
and do not constitute investment advice. ELIeN Capital nor the presenter is not liable for any
loss or damage, including without limitation, any loss of profit, which may arise directly or
indirectly from use of or reliance on such information.
3. Agenda
2015 ELIeN Group LLC. All Rights Reserved.
● About Me
● Overview / Background: Trading Terminology
● The Basics - What is a stock? An option?
● What is an option contract?
● What is a Covered Call Contract?
● What is Day Trading?
● Use of Margin
● Technical Analysis
● Day trading Examples
● Q/A
4. Eli Nichtberger
2015 ELIeN Group LLC. All Rights Reserved.
Recent Graduate of Baruch College
Steven L. Newman R.E. Institute, Zicklin School of Business
Real Estate Investment Major
Licensed New York Commercial Real Estate Agent
Bloom Real Estate Group, LLC
Financial Equity Analyst
Tech Point Capital, LP
Managing Principal / Trader
ELIeN Capital Investments, LP
Performance
2009: + 166.42%
2010: + 23.12%
2011: + 11.85%
2012: + 47.3%
2013: + 72.6%
2014: +121.58%
Q1 2015: + 31.10%
5. Background
2015 ELIeN Group LLC. All Rights Reserved.
Trading Terminology:
● Buying a stock
○ AKA going long, betting the security
will appreciate in price
● Selling a stock short
○ AKA shorting a stock, betting the
security will depreciate in price
● Options Contract
○ 100 shares per contract
● Technical Analysis
○ Method of forecasting a stock price
based on historical price data & trends
6. The Basics
2015 ELIeN Group LLC. All Rights Reserved.
http://www.investopedia.
com/video/play/short-selling/
Call option
Short Selling
7. What is an Option?
2015 ELIeN Group LLC. All Rights Reserved.
An options contract is an agreement between a buyer and
seller that gives the purchaser of the option the right to buy or
sell a particular asset at a later date at an agreed upon price.
Call
Put
Contract
Strike Price
Premium
Expiration
In-The-Money
At-The-Money
Out-The-Money
Intrinsic Value
Delta
Volatility
Cost Basis
8. What is a Covered Call?
2015 ELIeN Group LLC. All Rights Reserved.
● Safest form of Option trading
● Generates additional income
● Limits upside potential
● Lower’s underlying securities’ cost-basis
See my write-up on a covered call strategy
An options strategy whereby an investor holds a long position
in an asset and writes (sells) call options on that same asset in
an attempt to generate increased income from the asset
9. Day Trading
2015 ELIeN Group LLC. All Rights Reserved.
Definition:
Buying and subsequently selling
OR
Selling and subsequently buying
a security within one trading
DAY.
[Longer trades (days-weeks) are called
Swing Trades.]
Candlestick Charts
Level II Order Book
Time & Sales
Market Data
CNBC News
Quarterly Earnings
Margin
DT Buying Power
Scalping
Contrarian Trading
Range Trading
News Playing
Trend Following
Margin - DT Buying
Power
10. Technical Analysis
2015 ELIeN Group LLC. All Rights Reserved.
● Candlestick Charts
● SMA’s
● Trend Lines
● Support
● Resistance
● Channels
● Breakout
● Bollinger Bands
● Fibonacci Ratios
● Dead Cat Bounce
● RSI Indicator
