Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
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Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
The document discusses the "Guts" options strategy, which involves buying in-the-money (ITM) calls and puts on the same stock in order to profit from a surge in volatility that drives the stock price significantly higher or lower. The Guts strategy has unlimited profit potential but limited risk, though it is more expensive than a similar strangle strategy since both options are bought ITM. Key considerations for the Guts trade include entering around news events when implied volatility is low and exiting prior to expiration to avoid time decay.
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Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
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Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
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Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
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The document provides information on the author's trading edge methodology for the forex market. It discusses the three pillars of methodology with an edge, sensible money management, and strong willpower. It then outlines various money management rules including position sizing, risk limits, and profit taking. It describes the author's medium/long term trend trading and trend reversal trading methodologies including time frames, currency pairs, trade setups involving chart patterns and indicators, trade plans involving entry, stops and targets. It concludes with describing the author's daily, weekly and monthly routines for analysis and trade journaling.
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The document discusses various down trending and neutral investment strategies that can be used when the market is expected to decline or move sideways. It outlines bearish strategies like protective puts, long puts, naked calls, and bear spreads that profit when prices fall. Neutral strategies mentioned include covered calls, collars, long/short straddles and strangles, butterflies, and condors. The document recommends paper trading new strategies and provides website links for more details on typical strategies.
This document is the introduction to a book about forex trading. It outlines the contents of the book, which is divided into four parts. Part one covers basic forex concepts. Part two details eight forex trading strategies, including chart pattern trading and price rejection trading. Part three explains how to combine knowledge and strategies to achieve high performance trades with over 90% winning rates. Part four provides final advice for forex traders. The book aims to create a balanced system for having a solid trading strategy, managing risks, controlling emotions during trades, and maintaining discipline.
Top 8 Forex Trading Strategies That Pro Traders UseSyrous Pejman
In this slideshow find the best Forex trading strategies including chart patterns, price rejection, correlation trading, volume-price analysis, long term daily and weekly trading, news and sentiment trading strategies. Besides, you will learn the best money and risk management methods and also the best advice by the experts to control your psychology during your trades.
This document discusses market structure and liquidity in the forex market. It defines key concepts like expansion and retracement, break in market structure, range high and low, and failure swings. It explains how markets can be in consolidation, uptrend or downtrend phases. It also discusses how liquidity exists in the form of buy stops liquidity and sell stops liquidity, and what levels traders should focus on for each. The document provides information on understanding order flow and how banks manipulate prices to find liquidity to enter large positions.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
The document discusses the "Guts" options strategy, which involves buying in-the-money (ITM) calls and puts on the same stock in order to profit from a surge in volatility that drives the stock price significantly higher or lower. The Guts strategy has unlimited profit potential but limited risk, though it is more expensive than a similar strangle strategy since both options are bought ITM. Key considerations for the Guts trade include entering around news events when implied volatility is low and exiting prior to expiration to avoid time decay.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
The document provides information on the author's trading edge methodology for the forex market. It discusses the three pillars of methodology with an edge, sensible money management, and strong willpower. It then outlines various money management rules including position sizing, risk limits, and profit taking. It describes the author's medium/long term trend trading and trend reversal trading methodologies including time frames, currency pairs, trade setups involving chart patterns and indicators, trade plans involving entry, stops and targets. It concludes with describing the author's daily, weekly and monthly routines for analysis and trade journaling.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
The document discusses various down trending and neutral investment strategies that can be used when the market is expected to decline or move sideways. It outlines bearish strategies like protective puts, long puts, naked calls, and bear spreads that profit when prices fall. Neutral strategies mentioned include covered calls, collars, long/short straddles and strangles, butterflies, and condors. The document recommends paper trading new strategies and provides website links for more details on typical strategies.
This document is the introduction to a book about forex trading. It outlines the contents of the book, which is divided into four parts. Part one covers basic forex concepts. Part two details eight forex trading strategies, including chart pattern trading and price rejection trading. Part three explains how to combine knowledge and strategies to achieve high performance trades with over 90% winning rates. Part four provides final advice for forex traders. The book aims to create a balanced system for having a solid trading strategy, managing risks, controlling emotions during trades, and maintaining discipline.
Top 8 Forex Trading Strategies That Pro Traders UseSyrous Pejman
In this slideshow find the best Forex trading strategies including chart patterns, price rejection, correlation trading, volume-price analysis, long term daily and weekly trading, news and sentiment trading strategies. Besides, you will learn the best money and risk management methods and also the best advice by the experts to control your psychology during your trades.
This document discusses market structure and liquidity in the forex market. It defines key concepts like expansion and retracement, break in market structure, range high and low, and failure swings. It explains how markets can be in consolidation, uptrend or downtrend phases. It also discusses how liquidity exists in the form of buy stops liquidity and sell stops liquidity, and what levels traders should focus on for each. The document provides information on understanding order flow and how banks manipulate prices to find liquidity to enter large positions.
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
option market trading strategy
share market trading with options
buying and selling of options based upon strategy
derivative market trading strategy
how to trade in option market with different strategy
learn option market trading strategy with reference from NSE
making profit by trading in share market with different method and strategy
The document discusses four types of vertical spreads: long call vertical spreads, long put vertical spreads, short call vertical spreads, and short put vertical spreads. Each type involves buying and selling an option at different strike prices in the same expiration. The document outlines the directional assumption, ideal volatility environment, maximum profit/loss, and breakeven calculations for each spread. It also discusses the tastytrade approach to using vertical spreads for defined risk directional trading and when to close or manage the positions.
The document discusses the scalping trading strategy. It defines scalping as making many small profitable trades over short time periods, from seconds to minutes. Key aspects of scalping include taking short positions, aiming for small profit margins, and using leverage. The strategy outlined uses technical indicators like volume and moving averages to identify opportunities for quick trades when prices gap or pull back. It provides steps for analyzing volume to spot trends and reversals, and explains how to enter and exit trades quickly for small profits.
The document discusses various option strategies including long calls, puts, straddles, strangles and spreads. It provides details on the construction and profit/loss potential of each strategy. In a bull call spread, the trader buys an ITM call and sells an OTM call. Maximum profit is limited while loss is limited to the net premium paid. A bear put spread involves buying an OTM put and selling an ITM put, with maximum loss limited to the difference in strike prices less net premium received.
Profit Targets - How To Locate Profit Taking AreasNetpicksTrading
Profit Targets - How To Locate Profit Taking Areas
- See more at: http://www.netpicks.com/day-trading-profit-levels/
The issue that many traders have is getting out of the trade especially the day trading profit targets you are going to use.
If you swing trade, you will only make the decision to exit your trade every few days or so. As a day trader, you will be making profit taking decisions quite a few times during one trading session.
There are three exits for a trade:
Exiting trades for a profit
Exiting trades to cut your losses
Exiting your trade at break even (although you will still pay spread/commission)
- Visit our website: http://www.netpicks.com/
- Netpicks Inner Circle: http://www.netpicks.com/icenroll
- Download the free indicator blueprint: http://www.netpicks.com/blueprint/
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trading profits, trading exits, support and resistance, price levels
This document provides an agenda and overview for a presentation on disciplined trading. It discusses:
1. Who is providing the presentation - individuals from Vancouver Disciplined Trading Hub and Prosperis Passive Income Strategies.
2. What disciplined trading involves - having a conviction, catalyst, and plan for each trade as well as predefined risk management and cutting losses.
3. A practice disciplined trade using an iron condor options strategy on the S&P 500 as an example to illustrate concepts like being non-directional and managing risk.
The document concludes by providing takeaways on being disciplined, making money without directional bets, the benefits of leverage with options, and opportunities
The document discusses counter trend trading and provides advice for being successful at it. It notes that traders are often not aware they are counter trend trading until they are in the trade. It recommends focusing on the speed of the trend and looking for aggressive pullbacks or retracements for entry opportunities. It warns that counter trends are short-lived and advises having a plan focused on trading with the overall trend direction for better odds of success.
This document provides an agenda and overview for a presentation on disciplined trading. It discusses:
1. Who is providing the presentation - Karim Adatia and his company PPIS.
2. What disciplined trading involves - having a conviction, catalyst, and plan for each trade as well as predefined risk management.
3. An example of an iron condor options strategy using SPX options to generate returns in a range-bound market without directional bias. Historical performance data is provided on a practice account.
The presentation emphasizes the importance of discipline, predefining risk, cutting losses, and using a systematic approach for consistent profits when trading options or other instruments. An upcoming workshop is announced for
This document provides an agenda and overview for a presentation on disciplined trading. It discusses:
1. Who is providing the presentation - individuals from Vancouver Disciplined Trading Hub and Prosperis Passive Income Strategies.
2. What disciplined trading involves - having a conviction, catalyst, and complacency for trades, predefining risk, cutting losses, and using a systematic plan.
3. An example disciplined trade using an iron condor options strategy on the S&P 500 index, which aims to profit from the index staying within a defined trading range over a short time period.
The document provides disclaimer information and outlines the presentation topics of who the presenters are, what disciplined
This document provides an agenda and overview for an educational presentation on disciplined trading using equity options. The presentation will be given by Karim Adatia and his company Prosperis Passive Income Strategies. It will cover an introduction to the presenters and their background, a definition of disciplined trading, and a practice example of an iron condor options trade on the S&P 500 index. The presentation aims to educate attendees on making profits through non-directional trading using options while limiting risk through predefined strategies and money management techniques.
Reversal bars indicate a change in the prevailing trend and can be used as triggers to enter trades. They form when the high/low of the bar is exceeded but it closes in the opposite direction of the open and previous close. Continuation bars maintain the trend and include inside and outside bars. Objective stop losses should be used to exit trades and prevent larger losses, such as stops based on recent price extremes or pattern violations. It is important to have a plan for how to handle positions that gap against you overnight due to news, which may involve waiting before placing stops or scaling out of the position.
This document provides an agenda and overview for an educational presentation on disciplined trading. The presentation will cover:
1. An introduction of the presenters and their background in trading and financial education.
2. A definition of disciplined trading, focusing on trading based on conviction, catalysts, and risk management.
3. A demonstration of an example disciplined trade using an options strategy called an iron condor on the S&P 500 index.
4. Key aspects of the iron condor strategy like its range-bound nature, use of out-of-the-money options, and goal of averaging an 8% return over 3 weeks through time decay.
5. A discussion of
The document outlines the knowledge domains and weightings covered on the CMT Level I exam. It details that the exam focuses on introductory technical analysis concepts and consists of 132 multiple choice questions, of which 120 are scored. Candidates have two hours to complete the exam, which is administered on a computer at Prometric testing facilities. The major knowledge domains covered include trend analysis, chart and pattern analysis, selection and decision making, and ethics.
Standard VI addresses conflicts of interest. It requires members and candidates to (1) make full disclosure of any matters that could impair their independence or objectivity or interfere with client duties, (2) ensure disclosures are clear and prominent, and (3) give priority to client and employer transactions over personal transactions. Members must also disclose any compensation received for referrals.
This document outlines standards for investment analysis, recommendations, and actions. It discusses three key standards:
1) Diligence and reasonable basis, requiring members to exercise diligence, independence, and thoroughness when analyzing investments and making recommendations, and to have an adequate and supported basis for their analysis and actions.
2) Communication with clients, requiring members to disclose their investment processes, limitations, and risks to clients, use reasonable judgment in identifying important factors, and distinguish fact from opinion.
3) Record retention, requiring members to develop and maintain records supporting their analysis, recommendations, communications with clients.
Members and candidates must act for the benefit of their employer, not deprive them of skills/abilities or divulge confidential information. They cannot accept gifts or compensation that conflict with the employer's interests without consent. Members must make reasonable efforts to ensure anyone under their supervision complies with applicable laws, rules, regulations, and the Code and Standards.
Standard III outlines the duties CFA charterholders owe to their clients, including the duties of loyalty, prudence, care, fair dealing, suitability, performance presentation, and preservation of confidentiality. Specifically, it states that members must act in the best interest of clients, make suitable investment recommendations based on a client's needs and constraints, communicate performance information fairly and accurately, and keep client information confidential.
Members and candidates must uphold the integrity of capital markets. Specifically, they must not trade or share material non-public information that could affect investment prices. They also should not engage in practices like price distortion or artificially inflating trading volume with the intent to mislead others in the market. This standard is meant to promote ethical conduct and protect investors.
The document summarizes standards of professionalism for CMT Level I regarding knowledge of the law, independence and objectivity, misrepresentation, and misconduct. Standard I(A) states that members must understand and comply with all applicable laws and regulations, and in conflicts comply with the more strict rule. Standard I(B) requires members to maintain independence and objectivity and not accept gifts that could compromise their judgment. Standard I(C) prohibits knowingly misrepresenting analysis or recommendations. Standard I(D) prohibits conduct involving dishonesty, fraud, or deceit, or acts that adversely affect one's professional reputation.
Relative strength compares the performance of one asset to another over a period of time by taking the price of one and dividing it by the other. It provides context on whether an asset is undervalued or overvalued relative to its historical trading range compared to the other. Pairs trading strategies look for opportunities when two historically correlated assets diverge in their relative strength. Tools for analyzing relative strength include price ratios, relative strength ranks based on market performance, volatility ranks, and identifying bullish or bearish divergences in the price relative.
The document discusses the model-building process for a market-timing model. It describes including various types of indicators such as internal/price-based, external/macroeconomic, sentiment, valuation, monetary, and momentum. These indicators are tested individually and combined to form a composite reading. The composite reading can then be used to guide asset allocation decisions in a disciplined and objective manner. The goal is to create a stable, predictable model that avoids emotional decisions and captures risk and reward signals.
The document discusses keys to making money in investing rather than focusing on being right in forecasts. It summarizes that successful investors use objective indicators rather than emotions, have discipline to stick to their system, are flexible enough to change their view when evidence shifts, and carefully manage risks. It provides insights from legendary investors like John Bogle, Paul Tudor Jones, and the Ned Davis Research Group about relying on indicators, not fighting trends, being wary of crowds at extremes, and prioritizing money making over being right.
This document discusses objective vs subjective technical analysis. Objective analysis uses clearly defined rules that can be backtested, while subjective analysis relies on private interpretations that may differ between analysts. The document focuses on objective analysis and defines rules as functions that transform market data into signals. It discusses factors like position bias, market trends, and look-ahead bias that can influence backtest results. Detrending data and accounting for trading costs are presented as ways to properly evaluate rules.
This document provides an introduction to probability concepts. It defines probability as the chance of an event occurring and lists some key rules, such as the probabilities of all possible outcomes must sum to 1. It describes the normal probability distribution as a bell-shaped curve that is symmetric around the expected rate of return. It then discusses skewness and kurtosis as measures of the asymmetry and peakedness of a distribution.
This document defines and explains key concepts in descriptive statistics, including measures of central tendency (mean, median, mode) and measures of variability (standard deviation, variance). It provides formulas and examples for calculating each measure. The mean is the most common measure of central tendency and is the average value, while the median is the middle value and mode is the most frequent value. Standard deviation and variance are measures of how spread out the values are around the mean.
The document discusses several sentiment measures derived from external data sources:
1) The American Association of Individual Investors surveys individual investors to gauge bullish or bearish sentiment.
2) Investors Intelligence tracks sentiment indicators like advisor reviews and insider activity to measure market participant sentiment.
3) Magazine cover indicators, like analyzing covers of BusinessWeek, Forbes, and Fortune, are sometimes used as a contrary indicator of economic sentiment.
4) Mutual fund liquidity ratios and money market fund assets are also discussed as measures of investor risk appetite and market sentiment.
This document discusses various market sentiment indicators including the Commitment of Traders report, VIX, insider trading, open interest, short interest, and the put/call ratio. The Commitment of Traders report provides data on futures market positions. VIX measures expected market volatility. Insider trading involves trading on non-public information. Open interest tracks outstanding derivative contracts. Short interest measures the number of shares sold short as a percentage. The put/call ratio uses options data to gauge bullish or bearish market sentiment.
Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It indicates whether investors are feeling bullish and prices are rising, or bearish and prices are falling. There are several indicators that can help measure market sentiment, such as the VIX, high-low index, and bullish percent index. Key takeaways are that market sentiment reflects overall consensus on stocks and whether the tone is optimistic or pessimistic based on price movements.
The document discusses several theoretical approaches to analyzing financial markets, including the efficient market hypothesis (EMH) and the adaptive market hypothesis (AMH). The EMH suggests that markets are efficient and prices fully reflect all available information, while the AMH combines EMH with behavioral economics by proposing that people are rational but sometimes irrational during periods of volatility, and they adapt and learn from their mistakes over time. The document also examines research on noise trading, informed vs. uninformed traders, and empirical evidence that both past prices and nonpublic information can be used to generate profits.
Trend-following noise traders use technical analysis of stock price charts to inform their trading decisions in a systematic way. This can lead to self-fulfilling trends as many noise traders react to the same patterns. Models attempt to explain bubble and crash behaviors that seem driven by herd instincts rather than fundamentals. The Abreu-Brunnermeier model allows bubbles to form but not certainty that arbitrage will burst them. Shiller's model notes stock prices anticipate dividends more than fundamentals would suggest, implying an impact from investor psychology contrary to prevailing views.
This document discusses the concepts of fungibility, the efficient market hypothesis, and noise traders. It explains that under the EMH, two identical items should have the same price. However, behavioral economists argue that giving items different names could lead to different prices if the names influence perceptions. It then discusses noise traders, who trade based on non-fundamental factors and influence prices away from efficiency. For noise traders to significantly impact markets, their behavior must be systematic and they must economically survive over time, posing a challenge to market efficiency.
This document discusses different investment strategies including momentum strategies, mean reversion strategies, and value investing. Momentum strategies seek to take advantage of short-term price movements, while mean reversion strategies assume prices will revert back to a stable trend. Value investing picks stocks trading below their intrinsic value, believing the market overreacts and offers opportunities. The document also discusses how value investing works by finding "secret sales" on stocks trading at a discount to their true value. Finally, it notes that constant financial news reporting can create "noise" that "noise traders" react to, while rational investors focus on their own analysis.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...beulahfernandes8
The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
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2. Basics Concepts – Bear Put Ladder
Proficiency -
Advanced
Direction –
Neutral
Volatility - Low
Asset Leg –
Short Put + Short
Put + Long Put
Max Risk -
Unlimited
Max Reward -
Unlimited
Income
Strategies
3. Description – Bear Put Ladder
The Bear Put Ladder is an extension to the Bear Put Spread.
By shorting another put at a lower strike price, the position
assumes uncapped risk potential if the stock plummets
downwards.
if the stock rises above the higher (buy) strike, you can
make a loss;
if the stock falls to anywhere between the middle and lower
(short) strikes, you make your maximum profit;
if the stock falls below the lowest strike, then you can make
unlimited losses. The extra leg also ensures that you may
have two breakeven points.
4. Description – Bear Put Ladder
Sell lower strike puts.
Sell the same number of middle strike puts with the same
expiration date.
Buy the same number of higher strike puts with the same
expiration date.
5. Context - Bear Put Ladder
Outlook
A Bear Put Ladder is a Bear Put Spread financed by selling an
additional put further OTM.
•Rationale
To execute a direction neutral/conservatively bearish trade
for enhanced income. The lower strike sold puts will have the
effect of uncapping your potential risk.
6. Context - Bear Put Ladder
Net Position
This can be a net debit or net credit trade because while
your bought puts will be more expensive than your sold puts,
you’re selling more puts that you’re buying. Most of the time
this is likely to be a net debit trade.
Your maximum risk on the trade is uncapped to the
downside because you are selling more puts than you’re
buying.
7. Context - Bear Call Ladder
Effect of Time Decay
Time decay is generally helpful when the position is profitable,
particularly around the middle strike.
Time Period to Trade
You will be safest to choose a shorter term to expiration in order to
avoid the possibility of an uncapped loss scenario if the underlying
asset falls too much.
Breakeven Down = [Lower strike - maximum reward]
Breakeven Up [Higher strike + net debit]
8. Steps to Trading a Bear Put Ladder
Steps In
Try to ensure that the trend is downward but identify a clear area of
support and resistance.
Steps Out
• Manage your position according to the rules defined in your Trading
Plan.
• If the stock rises above your stop loss, then sell the Long Put, and if
you’re not permitted to trade Naked Puts, then unravel the entire
position.
9. Exiting the Trade - Bear Put Ladder
Exiting the Position
With this strategy, you can simply unravel the spread by buying
back the puts you sold and selling the puts you bought in the first
place.
Advanced traders may leg up and down as the underlying asset
fluctuates up and down. In this way, the trader will be taking
smaller incremental profits before the expiration of the trade.
Mitigating a Loss
Unravel the trade as described previously.
Advanced traders may choose to only partially unravel the spread
leg-by-leg.
10. Advantages and Disadvantages
Advantages
Lower cost and better breakeven scenario than a Bear Put
Spread.
The farther away from expiration you are, the more downside
protection you have in the event of the stock declining rapidly.
Disadvantages
Confusing as to whether this is a bullish or bearish strategy.
Capped upside if the stock rises.
Uncapped downside if the stock falls.
Typically used as a repair to a Bear Put Spread; therefore, this is
only for more advanced traders.
14. Example – Bear Put Ladder
Market Behavior Nifty
Option /Future Buy ITM PUT & Sell ATM & OTM PUT
Action (Long/ Short) Both
Price Movement Expectation DownSide / Side Ways
Spot Price 11700
Strike Price (Short ITM Put) 11800 Premium 140
Strike Price (Long ATM Put) 11700 Premium 100
Strike Price (Long OTM Put) 11600 Premium 50
Break Even (Up) (Higher Strike) + Net Debit = (11800 + 10) = 11810
Break Even (Down) Lower Strike - Net Debit = (11600 - 10 ) = 11590
Time to Expiry Mid/Last of the Month
Position of Price in Charts At Absolute Top / Lower Top in Downward Trend
Max Risk Limited
Max Reward Un Limited
15. Bear Put Ladder
Short ITM Put 11800 Premium 140 BEP 11660
Long ATM Put 11700 Premium 100 BEP 11600
Long OTM Put 11600 Premium 50 BEP 11550
Nifty at Expiry SHORT ITM Put
BEP – 11660
Long ATM Put
BEP – 11600
Long OTM Put
BEP - 11550
Total P&L
12200 140 -100 -50 -10
12100 140 -100 -50 -10
12000 140 -100 -50 -10
11900 140 -100 -50 -10
11800 140 -100 -50 -10
11700 40 -100 -50 -110
11600 -60 - -50 -100
11500 -160 100 50 -10
11300 -360 300 250 190