The document discusses investment risk and using option spreads to mitigate risk. It defines different types of risk including pervasive, systemic, and unsystematic risk. It then discusses various option spread strategies like vertical spreads, calendar spreads, and iron condors that can help reduce risk compared to simple long or short trades. The document promotes an online options education program that teaches various spread trading strategies over 2 years through e-learning modules, an options analysis platform, study materials, and consultations to help traders learn how to implement spreads.
Nasser Barakat presents on wealth preservation strategies using options and diversification. He discusses how focusing on defense through options can provide downside protection while allowing for growth potential. He also emphasizes the importance of multi-level diversification, including considering different growth strategies and tax efficiency. By balancing offensive and defensive approaches, an investor can strive to maximize returns while managing risks.
This document describes Model Wealth Portfolios (MWP) which provide clients of LPL advisors access to investment strategies from Dimensional Fund Advisors (DFA). MWP leverage DFA's academic research-driven approach to constructing diversified portfolios across asset classes. LPL Research constructed five Dimension Models (1-3 ranging from conservative to aggressive, plus Sustainable and Tax-Aware Models) that incorporate DFA funds. The models provide global diversification and exposure to value and small-cap securities to pursue the premiums associated with those factors. Ongoing management by LPL Research seeks to maintain the intended risk profile of each model.
Dimensional Fund Advisors promotes an investment approach based on financial science and decades of market research rather than speculation. It aims to deliver market returns by designing portfolios that capture compensated risks like small cap stocks and value stocks, while avoiding unnecessary risks. Dimensional focuses on broad diversification, smart trading to reduce costs, and engineering portfolios around dimensions shown to generate higher returns like market capitalization and value.
This document discusses risk-controlled investment strategies, specifically volatility control and risk parity approaches. It provides examples of how volatility control works by dynamically adjusting equity exposure in response to changing volatility levels. The benefits of volatility control for pension funds, insurance companies and individual investors are outlined. Case studies from different time periods demonstrate how volatility control can reduce drawdowns compared to a fixed market exposure. The document also introduces the concept of risk parity and how it aims to balance risk across asset classes rather than just allocating based on asset value. Implementation of volatility control and risk parity approaches are discussed.
Dual Strategy Equity Derivatives Fund January 2017George Namur
This document provides an overview of the Dual Strategy Equity Derivatives Fund, which combines two complementary investment strategies - an options strategy and a quantitative volatility strategy - to generate high returns while limiting volatility. The options strategy takes long positions in equity options to benefit from upward market moves. The quantitative volatility strategy uses a proprietary Gamma Vanna Volga framework to identify relative value and carry trade opportunities in volatility markets. Together, the two strategies aim to produce smoother returns than either strategy alone due to their low correlation.
This document defines absolute return investing in fixed income strategies. It discusses that absolute return strategies aim to provide low correlation to traditional asset classes and positive returns regardless of market direction. For fixed income specifically, absolute return strategies aim to diversify fixed income exposure and add an alternative style to complement traditional fixed income. The document outlines key characteristics of absolute return fixed income strategies, including not eliminating interest rate and credit risk but being tactical in exposure, accessing returns uncorrelated to broader markets, employing risk management focused on potential losses, constructing portfolios that can perform in various scenarios, taking a systematic hedging approach, and being managed by experienced teams.
The document provides an overview of TAG Benefit Advisors' investment recommendations and process for selecting investment managers and constructing investment menus for 401(k) retirement plans. It describes their rigorous quantitative and qualitative manager selection process, the diversified range of recommended investment styles and funds, and commentary on each recommended manager.
This document describes a proposed dual strategy equity derivatives fund. It would pursue two complementary strategies - a long-biased options strategy and a quantitative volatility strategy. The strategies are meant to generate high returns while limiting volatility and correlation to markets. Key details include the fund's structure, fee terms, hypothetical performance metrics for different strategy allocations, budget projections, bios of the fund manager and quantitative manager, and contact information. A valuation model is also outlined.
Nasser Barakat presents on wealth preservation strategies using options and diversification. He discusses how focusing on defense through options can provide downside protection while allowing for growth potential. He also emphasizes the importance of multi-level diversification, including considering different growth strategies and tax efficiency. By balancing offensive and defensive approaches, an investor can strive to maximize returns while managing risks.
This document describes Model Wealth Portfolios (MWP) which provide clients of LPL advisors access to investment strategies from Dimensional Fund Advisors (DFA). MWP leverage DFA's academic research-driven approach to constructing diversified portfolios across asset classes. LPL Research constructed five Dimension Models (1-3 ranging from conservative to aggressive, plus Sustainable and Tax-Aware Models) that incorporate DFA funds. The models provide global diversification and exposure to value and small-cap securities to pursue the premiums associated with those factors. Ongoing management by LPL Research seeks to maintain the intended risk profile of each model.
Dimensional Fund Advisors promotes an investment approach based on financial science and decades of market research rather than speculation. It aims to deliver market returns by designing portfolios that capture compensated risks like small cap stocks and value stocks, while avoiding unnecessary risks. Dimensional focuses on broad diversification, smart trading to reduce costs, and engineering portfolios around dimensions shown to generate higher returns like market capitalization and value.
This document discusses risk-controlled investment strategies, specifically volatility control and risk parity approaches. It provides examples of how volatility control works by dynamically adjusting equity exposure in response to changing volatility levels. The benefits of volatility control for pension funds, insurance companies and individual investors are outlined. Case studies from different time periods demonstrate how volatility control can reduce drawdowns compared to a fixed market exposure. The document also introduces the concept of risk parity and how it aims to balance risk across asset classes rather than just allocating based on asset value. Implementation of volatility control and risk parity approaches are discussed.
Dual Strategy Equity Derivatives Fund January 2017George Namur
This document provides an overview of the Dual Strategy Equity Derivatives Fund, which combines two complementary investment strategies - an options strategy and a quantitative volatility strategy - to generate high returns while limiting volatility. The options strategy takes long positions in equity options to benefit from upward market moves. The quantitative volatility strategy uses a proprietary Gamma Vanna Volga framework to identify relative value and carry trade opportunities in volatility markets. Together, the two strategies aim to produce smoother returns than either strategy alone due to their low correlation.
This document defines absolute return investing in fixed income strategies. It discusses that absolute return strategies aim to provide low correlation to traditional asset classes and positive returns regardless of market direction. For fixed income specifically, absolute return strategies aim to diversify fixed income exposure and add an alternative style to complement traditional fixed income. The document outlines key characteristics of absolute return fixed income strategies, including not eliminating interest rate and credit risk but being tactical in exposure, accessing returns uncorrelated to broader markets, employing risk management focused on potential losses, constructing portfolios that can perform in various scenarios, taking a systematic hedging approach, and being managed by experienced teams.
The document provides an overview of TAG Benefit Advisors' investment recommendations and process for selecting investment managers and constructing investment menus for 401(k) retirement plans. It describes their rigorous quantitative and qualitative manager selection process, the diversified range of recommended investment styles and funds, and commentary on each recommended manager.
This document describes a proposed dual strategy equity derivatives fund. It would pursue two complementary strategies - a long-biased options strategy and a quantitative volatility strategy. The strategies are meant to generate high returns while limiting volatility and correlation to markets. Key details include the fund's structure, fee terms, hypothetical performance metrics for different strategy allocations, budget projections, bios of the fund manager and quantitative manager, and contact information. A valuation model is also outlined.
This document discusses strategies for trading stocks and options, including:
- Fundamental and technical analysis help determine what stocks to buy/sell and when.
- Certain industries like coal and mining saw strong gains, while mortgage finance and airlines saw sharp declines.
- ETFs can reduce risk compared to individual stocks by tracking sectors.
- Tools like moving averages and oscillators help identify trading opportunities.
- Proper risk management includes stop losses, profit targets, and defined risk/reward ratios.
The document discusses style premia investing, which refers to allocating to risk factors across asset classes that have historically generated significant risk-adjusted returns. It provides examples of academic research highlighting factors like value, momentum, and defensive styles that have persisted over decades. Practitioners like Neil Woodford and Warren Buffett are analyzed in the context of harvesting these style premia without explicitly targeting them. The document explores how style premia may represent alpha that is misclassified as beta. It also discusses evaluating strategies in different economic regimes, the evolution of separating alpha from beta, and comparing style premia to smart beta approaches. Finally, it analyzes ways for investors to access style premia through total return swaps on bank indices or asset managers
Have you ever asked yourself, "What really is that beta in your ETF?" As more and more money continues to flow into passive ETFs, how and what is exactly the best way to value your ETF. Nowadays, there are dozens of US Large-Cap, Value, and Growth ETFs, and investors must find a way to select the best ETF in each category. In, "What Really Is That Beta In Your ETF?", we dive into these topics.
FPA Conference Presentation in Anaheim, Ca 10-11-2009seaneheron
This document summarizes a presentation on enhancing investment practices with equity option strategies. The presentation was given by Rutgers University in partnership with The Options Industry Council. It provides an overview of options basics including defining derivatives, why investors use options, and describing call and put options. It also reviews specific option strategies like covered calls, protective puts, straddles, and strangles. The presentation aims to educate investors on how to use options to generate income, reduce risk, and take advantage of different market conditions.
CHW Vol 15 Isu 1 Jan Quarterly Edgehill PartnersJ Scott Miller
The document summarizes an interview with Jason Mann, portfolio manager of the EHP Advantage Fund, a long/short North American equity fund. Mann describes the fund's strategy of buying undervalued stocks with positive momentum and low volatility, and shorting overvalued stocks with negative momentum and high volatility. He emphasizes the fund's ability to systematically gear down risk and rotate to more defensive positions and strategies in declining markets to preserve capital while still participating in up markets. Mann also discusses the benefits of the fund's disciplined, evidence-based and systematic approach to stock selection and risk management.
Investment strategies of famous investment gurusHarish Manchala
This document summarizes the investment strategies of several famous investors including Benjamin Graham, Peter Lynch, Warren Buffett, David Dreman, John Neff, Kenneth Fisher, Martin Zweig, Joel Greenblatt, Joseph Piotroski, and James O'Shaughnessy. It describes the key aspects of each of their strategies such as focusing on value, price/earnings ratios, earnings growth rates, contrarian approaches, and blending growth and value styles.
The document provides an introduction to a lecture on modern portfolio theory. It discusses key concepts such as risk, capital markets, market efficiency, and diversification. The lecturer, Muhammad Usman, outlines the course material including two textbooks and notes that the lectures will provide an introduction to important concepts while students are expected to do additional private study.
Mutual funds allow investors to pool their money together for investment purposes. The key advantages are professional management, diversification, flexibility, low costs, and transparency. Regulations in India are governed by SEBI and funds are organized as trusts. Terminology includes asset allocation, fund manager, NAV, entry/exit loads, and types of schemes such as equity, debt, balanced, tax saving, and other specialized funds. Investors must consider their goals, risk tolerance, fund performance and costs when selecting funds.
This document provides an overview of a presentation on disciplined trading using equity options. It discusses who is providing the presentation, defines disciplined trading as trading based on conviction, catalyst, and complacency with predefined risk management. It then gives an example of a practice disciplined trade using an iron condor strategy on the S&P 500, explaining how the strategy works and providing management guidelines. Videos and future meetup details are also listed.
Benjamin Graham was an influential American economist and investor who is considered the father of value investing. He wrote two influential books, Security Analysis and The Intelligent Investor. The Intelligent Investor teaches the distinction between investing and speculation, with investing focused on analyzing companies and protecting against losses, while speculation aims for extraordinary gains. It also covers topics like how to select stocks, dealing with market fluctuations, and the importance of a margin of safety. The book has been hugely influential on investors like Warren Buffett and remains one of the foundational texts on value investing.
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
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 a practice disciplined options trade using an iron condor strategy, which is non-directional and aims to profit from volatility and time decay within a range.
4. A discussion of expectancy and position sizing when using this strategy, with the goal of making consistent profits through discipline and a systematic approach.
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.
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
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, predefining risk, cutting losses quickly and using a systematic money management strategy.
3. An example of an iron condor options strategy using S&P 500 options to generate returns in a range-bound market with limited risk.
The presentation aims to educate attendees on option strategies and disciplined trading principles in a non-directional manner with positive expected returns.
This document provides an agenda and overview for an educational presentation on disciplined trading. The presentation will cover: who the presenters are, what disciplined trading involves, and an example of a practice disciplined trade using an options strategy called an iron condor. Key points include that disciplined trading requires predefining risk, cutting losses, and using a systematic plan. The example trade involves writing put and call options above and below a perceived trading range to benefit from volatility and time decay if the market stays within that range. Expectancy calculations show this strategy has a high win rate and positive expected value if followed systematically.
The document summarizes Seth Klarman's book "Margin of Safety" which discusses value investing principles. It covers topics like where most investors go wrong by speculating instead of investing, how Wall Street works against individual investors, issues with institutional investing, and the myths of junk bonds in the 1980s. The book advocates for a value investing approach focused on obtaining a margin of safety through rigorous analysis to find undervalued securities trading significantly below their intrinsic value.
This document provides an introduction to options strategies. It discusses that planning, commitment, and research are needed before investing in options. The document outlines that investors must understand how they want options to work in their portfolio and choose a strategy that helps meet their investment goals. It then provides an overview of some simple and more complex options strategies, noting that simple strategies are best for beginners. The document emphasizes the importance of avoiding common mistakes like overleveraging, lack of understanding, and not doing research. It concludes by stressing the importance of committing to a chosen strategy.
The document is a letter from Guy Lerner, managing partner of ARL Advisers, LLC, seeking to gain the reader's investment business. Lerner outlines his investment approach which focuses on strategic asset allocation using quantitative models, risk management, and disciplinized investing to target returns for investors. He provides hypothetical portfolio examples demonstrating returns superior to passive indexes with reduced risk and volatility. Lerner invites the reader to review additional presentation materials outlining ARL's services and Lerner's qualifications and experience in order to assess whether ARL can provide the best investment solution.
This document discusses strategies for trading stocks and options, including:
- Fundamental and technical analysis help determine what stocks to buy/sell and when.
- Certain industries like coal and mining saw strong gains, while mortgage finance and airlines saw sharp declines.
- ETFs can reduce risk compared to individual stocks by tracking sectors.
- Tools like moving averages and oscillators help identify trading opportunities.
- Proper risk management includes stop losses, profit targets, and defined risk/reward ratios.
The document discusses style premia investing, which refers to allocating to risk factors across asset classes that have historically generated significant risk-adjusted returns. It provides examples of academic research highlighting factors like value, momentum, and defensive styles that have persisted over decades. Practitioners like Neil Woodford and Warren Buffett are analyzed in the context of harvesting these style premia without explicitly targeting them. The document explores how style premia may represent alpha that is misclassified as beta. It also discusses evaluating strategies in different economic regimes, the evolution of separating alpha from beta, and comparing style premia to smart beta approaches. Finally, it analyzes ways for investors to access style premia through total return swaps on bank indices or asset managers
Have you ever asked yourself, "What really is that beta in your ETF?" As more and more money continues to flow into passive ETFs, how and what is exactly the best way to value your ETF. Nowadays, there are dozens of US Large-Cap, Value, and Growth ETFs, and investors must find a way to select the best ETF in each category. In, "What Really Is That Beta In Your ETF?", we dive into these topics.
FPA Conference Presentation in Anaheim, Ca 10-11-2009seaneheron
This document summarizes a presentation on enhancing investment practices with equity option strategies. The presentation was given by Rutgers University in partnership with The Options Industry Council. It provides an overview of options basics including defining derivatives, why investors use options, and describing call and put options. It also reviews specific option strategies like covered calls, protective puts, straddles, and strangles. The presentation aims to educate investors on how to use options to generate income, reduce risk, and take advantage of different market conditions.
CHW Vol 15 Isu 1 Jan Quarterly Edgehill PartnersJ Scott Miller
The document summarizes an interview with Jason Mann, portfolio manager of the EHP Advantage Fund, a long/short North American equity fund. Mann describes the fund's strategy of buying undervalued stocks with positive momentum and low volatility, and shorting overvalued stocks with negative momentum and high volatility. He emphasizes the fund's ability to systematically gear down risk and rotate to more defensive positions and strategies in declining markets to preserve capital while still participating in up markets. Mann also discusses the benefits of the fund's disciplined, evidence-based and systematic approach to stock selection and risk management.
Investment strategies of famous investment gurusHarish Manchala
This document summarizes the investment strategies of several famous investors including Benjamin Graham, Peter Lynch, Warren Buffett, David Dreman, John Neff, Kenneth Fisher, Martin Zweig, Joel Greenblatt, Joseph Piotroski, and James O'Shaughnessy. It describes the key aspects of each of their strategies such as focusing on value, price/earnings ratios, earnings growth rates, contrarian approaches, and blending growth and value styles.
The document provides an introduction to a lecture on modern portfolio theory. It discusses key concepts such as risk, capital markets, market efficiency, and diversification. The lecturer, Muhammad Usman, outlines the course material including two textbooks and notes that the lectures will provide an introduction to important concepts while students are expected to do additional private study.
Mutual funds allow investors to pool their money together for investment purposes. The key advantages are professional management, diversification, flexibility, low costs, and transparency. Regulations in India are governed by SEBI and funds are organized as trusts. Terminology includes asset allocation, fund manager, NAV, entry/exit loads, and types of schemes such as equity, debt, balanced, tax saving, and other specialized funds. Investors must consider their goals, risk tolerance, fund performance and costs when selecting funds.
This document provides an overview of a presentation on disciplined trading using equity options. It discusses who is providing the presentation, defines disciplined trading as trading based on conviction, catalyst, and complacency with predefined risk management. It then gives an example of a practice disciplined trade using an iron condor strategy on the S&P 500, explaining how the strategy works and providing management guidelines. Videos and future meetup details are also listed.
Benjamin Graham was an influential American economist and investor who is considered the father of value investing. He wrote two influential books, Security Analysis and The Intelligent Investor. The Intelligent Investor teaches the distinction between investing and speculation, with investing focused on analyzing companies and protecting against losses, while speculation aims for extraordinary gains. It also covers topics like how to select stocks, dealing with market fluctuations, and the importance of a margin of safety. The book has been hugely influential on investors like Warren Buffett and remains one of the foundational texts on value investing.
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
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 a practice disciplined options trade using an iron condor strategy, which is non-directional and aims to profit from volatility and time decay within a range.
4. A discussion of expectancy and position sizing when using this strategy, with the goal of making consistent profits through discipline and a systematic approach.
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.
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
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, predefining risk, cutting losses quickly and using a systematic money management strategy.
3. An example of an iron condor options strategy using S&P 500 options to generate returns in a range-bound market with limited risk.
The presentation aims to educate attendees on option strategies and disciplined trading principles in a non-directional manner with positive expected returns.
This document provides an agenda and overview for an educational presentation on disciplined trading. The presentation will cover: who the presenters are, what disciplined trading involves, and an example of a practice disciplined trade using an options strategy called an iron condor. Key points include that disciplined trading requires predefining risk, cutting losses, and using a systematic plan. The example trade involves writing put and call options above and below a perceived trading range to benefit from volatility and time decay if the market stays within that range. Expectancy calculations show this strategy has a high win rate and positive expected value if followed systematically.
The document summarizes Seth Klarman's book "Margin of Safety" which discusses value investing principles. It covers topics like where most investors go wrong by speculating instead of investing, how Wall Street works against individual investors, issues with institutional investing, and the myths of junk bonds in the 1980s. The book advocates for a value investing approach focused on obtaining a margin of safety through rigorous analysis to find undervalued securities trading significantly below their intrinsic value.
This document provides an introduction to options strategies. It discusses that planning, commitment, and research are needed before investing in options. The document outlines that investors must understand how they want options to work in their portfolio and choose a strategy that helps meet their investment goals. It then provides an overview of some simple and more complex options strategies, noting that simple strategies are best for beginners. The document emphasizes the importance of avoiding common mistakes like overleveraging, lack of understanding, and not doing research. It concludes by stressing the importance of committing to a chosen strategy.
The document is a letter from Guy Lerner, managing partner of ARL Advisers, LLC, seeking to gain the reader's investment business. Lerner outlines his investment approach which focuses on strategic asset allocation using quantitative models, risk management, and disciplinized investing to target returns for investors. He provides hypothetical portfolio examples demonstrating returns superior to passive indexes with reduced risk and volatility. Lerner invites the reader to review additional presentation materials outlining ARL's services and Lerner's qualifications and experience in order to assess whether ARL can provide the best investment solution.
Chaos Cruncher is the most advanced iteration of an automatic trading system designed, developed and used by Quant Trade. As our leading trading system, we have devised a way to offer it to our clients as a system service, in our Commodity Trading Advisor, or as a desktop application.
Ahead of the marcus evans Latin Private Wealth Management Summit Fall 2018, read here an interview with Edgar Nava, Orlando Sthory and Leonardo Bracho discussing how investors can take advantage of volatility
The Complete Guide to Option Strategies: Advanced and Basic Strategies on Sto...Mohamed Mahdy
This document is the table of contents for a book on options trading. It outlines the book's five parts which cover learning fundamentals, basic option strategies, spread strategies, comparing underlying instruments, and advanced topics. The chapters within each part provide overviews and examples of various option concepts and strategies. The preface explains that options allow traders to control risk in volatile markets and profit in different ways, making them a versatile trading tool for individuals.
Is Your Advisor Giving You The Information Needed To Succeed? - Investment Op...shirtz14
The document discusses three major types of investments - variable, fixed, and indexed. It states that some investment advisors fail to present all three options to clients. The types define how interest is earned, with variable investments linked to market performance, fixed investments providing guaranteed returns, and indexed investments providing some market upside with downside protection. The document emphasizes getting informed about all the options available.
How To Make Money From Indian Stock MarketAshish Sanghvi
This file will help you to understand everything you need to know about stock market including how to make investments and achieve your financial goals in life. With the presentation one can become an expert in the Indian Stock Market.
If you want to learn how to analyze and calculate the risk level of a listed Indian company and find multi-bagger companies for investment under 5 minutes then you can contact me at the following email address:
sanghviashish105@gmail.com
Thank you!
TRADE LIKE A HEDGE FUND - Harness the Power Of Technology to Gain Market Edge...Geoffrey Hossie
Presentation by Geoffrey Hossie of Pairtrade Finder to the Marbella Business Institute, 24 February 2017.
An introduction to Pair Trading and Why It Matters To You.
This document provides an overview of different types of stocks and strategies for investing in stocks. It discusses:
- Different categories of stocks including growth stocks, blue-chip stocks, income stocks, cyclical stocks, defensive stocks, value stocks, and speculative stocks.
- Key factors to evaluate when choosing stocks including earnings per share, price-earnings ratio, dividend yield, and book value per share. The document recommends focusing on stocks that meet most of these value criteria.
- Long-term investment strategies like dollar-cost averaging, reinvesting dividends, and avoiding common investor mistakes.
So in summary, the document outlines different stock types, key metrics to evaluate stocks, and long-term
This document introduces derivatives and their role in managing risk. It discusses forwards, futures, and options contracts and introduces the basic concepts needed to analyze these instruments. It also discusses the major traders involved in these markets and some key terms like long/short positions and bid-ask spreads.
Financial Markets, the US Security and Exchange Commission, and the Academy o...NAFCareerAcads
The document discusses the mission and structure of the SEC, provides key messages for students about investing, and outlines tools and resources for teaching financial literacy. The SEC's mission is to protect investors, maintain fair and orderly markets, and facilitate capital formation. It has five commissioners and five divisions. Key investing lessons for students include setting financial goals, understanding compound interest and diversification, knowing investment risks and fees, and doing thorough research. The SEC offers various programs and materials to help teach financial literacy.
This document discusses brokers and the services they provide. It notes that brokers now many tools available and investors have more information than ever before. However, making investment decisions can still be difficult. The document outlines different types of brokers and costs associated with them. It also discusses various trading tools, research resources, and trading pitfalls for investors to be aware of. The overall message is that while brokers can provide support, investors are ultimately responsible for their own investment decisions.
This document provides an agenda and content for a meetup on disciplined trading. The summary includes:
- The meetup will introduce who the presenters are, discuss what disciplined trading is, demonstrate a non-directional practice trade, and provide content for the week.
- A non-directional trade example is given using an iron condor options strategy on the S&P 500 index between 2400-2600 over 3 weeks, with an average return of 8% and time decay as the guarantee.
- Risk management principles for disciplined traders are outlined as predefining risk before trades, cutting losses without hesitation, and using a systematic money management plan to make consistent profits.
The document provides guidance on personal finance and investing principles. It discusses ten principles of successful investing including knowing your goals and risk tolerance, diversifying your portfolio, investing for the long-term in a tax-efficient manner, and developing and following an investment plan. It also reviews the major asset classes and their historical risk and return profiles to help investors understand appropriate investments for different risk tolerances and time horizons.
This document provides an overview of a training program on financial risk management. It includes an introduction to key terminology related to derivatives and financial risk. It then covers various types of financial risk like solvency risk, liquidity risk, credit risk and cash flow risk. It also discusses ways to finance a business through debt and equity. Other topics covered include reckless trading and the role of an internal audit function and audit committee in managing financial risk.
Investment involves sacrificing current consumption for future benefits. The investment process involves 5 steps: 1) determining objectives and policy, 2) security analysis, 3) portfolio construction, 4) review, and 5) performance evaluation. Investment decisions are based on balancing risk and return. Risks include systematic/market risks from external factors and unsystematic/specific risks that can be reduced through diversification. Systematic risks include market, interest rate, and purchasing power risks from factors like wars, recessions, and inflation.
This document outlines a system for timing the stock market using moving averages. It describes three components: price, short-term trend, and long-term trend, each represented by an exponential moving average (EMA). It provides examples and illustrations of how to set the EMA parameters and interpret the signals generated from the relationship between the three averages. Specifically, it indicates that upward trends are confirmed when the short-term EMA crosses above the long-term EMA, and downward trends are confirmed when the short-term EMA crosses below the long-term EMA. The system aims to identify trend changes and continuations by analyzing crossovers and situations where the short-term trend is already aligned with the long-term trend.
This document provides an overview of a financial markets analysis course presented by Jonathan L. Ravelas. It includes biographical information about Ravelas, noting his experience and credentials in financial markets spanning over 25 years. It also outlines the course modules which will cover various topics including equities, fixed income, currencies, and the relationship between financial markets and the economy. Risk factors associated with investments such as price risk, income risk, and interest rate risk are defined.
This document discusses Value at Risk (VaR) and how it can be used by client advisors, sales/brokerage teams, and senior management to assess portfolio risks. VaR measures the maximum potential loss of a portfolio over a time period, given a probability. It allows risks across different asset types to be measured together. The document outlines how VaR is calculated using historical volatility and correlation data to project a range of possible future portfolio values. It also discusses how options are incorporated into VaR using measures like delta, gamma, and theta to account for non-normal return distributions. The overall aim is to inform readers about risk measurement and how VaR can help mitigate risks for clients.
This document provides tips and guidance for beginner stock market investors. It discusses establishing long-term goals, understanding your risk tolerance, controlling your emotions, and handling the basics of investing before making your first purchase. The key tips are to set long-term goals for your investing, understand your personal risk tolerance, avoid making emotional decisions, and learn basic financial concepts and terms before investing. Diversifying your investments and starting early are also emphasized as important strategies.
Secured options binary options 6 stock market investing tips & guide for
Spreads2
1. What Is Investment Risk and Using Spreads to Mitigate It. Featuring: Victor Greco 4
2. Disclaimer The views of third party speakers and their materials are their own and do not necessarily represent the views of Chicago Board Options Exchange, Incorporated (CBOE). Third party speakers are not affiliated with CBOE. This presentation should not be construed as an endorsement or an indication by CBOE of the value of any non-CBOE product or service described in this presentation. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information in this presentation is provided solely for general education and information purposes. Any strategies discussed, including examples using actual securities and price data, are strictly for illustrative and educational purposes. In order to simplify the computations, commissions and other transaction costs have not been included in the examples used in this presentation. Such costs will impact the outcome of the stock and options transactions and should be considered. No statement within the presentation should be construed as a recommendation to buy or sell a security or to provide investment advice. Investors should consult their tax advisor about any potential tax consequences. Past performance is not indicative of future results.
3. His financial career started on the floor of the Chicago Board of Trade (CBOT), where he traded Treasury bond futures during the exciting era prior to the crash of 1987. He then went on to Sales and Investment Banking roles where he assisted companies with private placements, IPO’s and trained dozens of financial advisors. As a Portfolio Manager, Victor managed a capital fund for client accounts in excess of $150 million. During this time, he also built and managed a new $40 million hedge fund for smaller net worth investors (those with under $1 million in assets) so they could enjoy the same products and personal service as the traditional hedge fund customer. His entrepreneurial background also includes starting and developing small businesses from the ground up and turning them into profitable companies. Victor’s hobbies include scuba diving, visiting exotic destinations and collecting butterflies from around the world. Victor Greco Chief Options Strategist, has more than 20 years of experience in training, leadership and business management within the financial industry. He has created and taught seminars on financial management as well as mentored sales staff.
8. What year did the movie “Risky Business” first hit the theaters in the US?
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11. RISK MANAGEMENT “ October….This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.” Mark Twain
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13. RISK MANAGEMENT Controlling the probability, and/or the severity, of a potential adverse event so that the consequences of that event are within acceptable limits. The process of determining the maximum acceptable level of overall risk to and from a proposed activity, then using risk assessment techniques to determine the initial level of risk and, if this is excessive, developing a strategy to appropriately amend the individual risks until the overall level of risk is reduced to an acceptable level.
32. Iron Condors – Limited Risk Maximum loss for the iron condor spread is also limited but significantly higher that the maximum profit. It occurs when the stock price falls at or below the lower strike of the put purchased or rise above or equal to the higher strike of the call purchased.
33. Stock Repair Strategy (RATIO SPREAD) Long 100 share at $50 Buy 1 July 40 Call for $200 Sell 2 July 45 Calls for $100 Current price of stock is $40 At expiration, stock is at $45
34. What kind of car does Joel’s father have in the movie? Mercedes Audi Porsche BMW Jaguar
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44. Joel’s mom has something very special to her on the mantelpiece. It almost falls to the ground but Joel dives in the air to save it from breaking. What is it?
Let me introduce myself. My name is Victor Greco. I have recently joined the staff at OptionVue and Discover Options. Since I find so much personal enjoyment in teaching others, I consider myself to be the Chief Education Officer, but that was causing some confusion around here with the real CEO. I am very excited to be here with all of you today and to share some ideas which have helped me to secure my financial freedom and hopefully will do the same for yours. As you can see. I have been around the financial blocks for quite some time now. It is important for you to know that, despite the fact that I have so many years of hands on experience, I consider myself a life time student. There is always more to learn. Continuous improvement is a way of life for me and I hope it will become one for all of you as well.
So how risky is your trading business? Each of us needs to figure out the answer to that very question every time we place a trade or make an investment. As some of you may have learned by now, whenever I make a presentation, I like to incorporate several learning concepts into one. With that in mind, I want to begin speaking on what investment risk is and the various kinds of risk that affect each investing decision we make. With that foundation in place, I will share a few different option spreads and the advantages of using these types of trading strategies to help mitigate investment risk.
In this slide, I have stated the most generally accepted term for investment risk. This is a very generic statement and does not provide any details into the variety of risks that can be associated with an investment. Different investments carry different risks associated with them that need to be thought through and analyzed prior to making any investment. It is always important to know and understand the risk of the underlying security when utilizing options.
As I said, there are different types of investment risk associated with any investment. All of these risks should be analyzed in order to make the wisest decision regarding your financial future. I want to briefly explain what you should consider under each of these categories.
Some risks are pervasive and applicable to all investments. One such risk is Purchasing power risk. This is the chance that investment returns will be better or worse than expected because of the sole influence of price inflation or deflation. We can also include BUYING POWER in this category. This is when you may have written a naked put option at the beginning of the month and now have to wait until you get some premium erosion in order to profit from the trade. In the mean time, another investment may have had a better opportunity with a higher return that you could not participate in because your money was margined and set aside already. The chance that returns will be affected by the policies and stability of nations is termed political risk. The danger of debt repudiation or failure to meet debt service, expropriation of assets, differences in taxes, restrictions on repatriating funds, and the prohibition against exchanging foreign currency into domestic currency are typical political risks. Country sector ETFs are an example of investments that carry political risk. The chance that returns will be affected by changes in the rates of exchange because investments have been made in international markets whose promise to pay dividends, interest or principal is not denominated in domestic currency is called currency risk. Currency risk has long been an impediment to global investing because fluctuations in relative foreign exchange values tend to accentuate return and risk in domestic currency terms. Most global companies are affected by currency fluctuations which either hurts or helps their bottom line numbers.
1983
The chance that returns will be better or worse that expected because of changes in the level of interest rates is called interest rate risk. The prices of all investment assets tend to rise as interest rates decline, and vice versa. Pure interest moves are associated with default-free investments, such as US Treasuries. Here’s a thought….with rates at historic lows, which way can they go? If that is the case, how will that affect the underlying securities? Something to ponder over….. The chance that market influences will affect expected returns of all equities in ways that were not anticipated is called market risk. The returns on individual stocks are influenced by the price movement of the marketplace in which they are traded, depending on their sensitivity to the overall movement of the market. For example, if the market were to rise by 20%, the chances would be great that any one stock or portfolio of stocks would rise as well. The extent of the increase would depend on the sensitivity of an individual stock or stock portfolio to movements in the stock market. The sensitivity measure is called beta which I will touch upon in a moment. One thing I look at is my overall portfolio risk. This involves knowing what my “relative beta” is and the “adjusted volatility” in order to mitigate my entire portfolio risk as a whole. Real estate possesses 5 types of risk not found in most other investments and I will not touch upon them during this presentation.
Credit risk consists of a firm’s business and financial risks. Business risk is the risk inherent in the nature of the business. Financial risk is the risk in addition to business risk that arises from using financial leverage. You can say that credit risk is associated with the ability of the firm that issues securities to meet its promise on those securities. The fundamental promise of every investment is the ability to deliver returns that are consistent with the risk assumed. Sector risk is the risk of doing better or worse that expected as a result of investing in one sector of the economy or country instead of another. It is often called industry risk. It is through this that portfolio managers started to classify assets by criterion such as small versus large cap, dividend yields, price/earnings ratios or betas. As before, real estate investment risk conjures up a whole other discussion which we will shelve for another time.
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I hope by now that you are contemplating the various risks associated with any investment. When approaching any sort of trade or investment, we need to look at it with an understanding that it may not turn out as we hope it will. This brings us to a solid conclusion that we should always have a plan in place and try to mitigate the risks involved in order to have a better than average outcome skewed in our favor. (READ)
This is what risk management involves. It requires knowledge, understanding and the wisdom to be diligence in purpose.
CHICAGO
Here are a few generally accepted steps in order to reduce our risk exposure. I’m not going to discuss them in any detail here, but feel free to jot them down so that you can have time to consider them on your own. When it comes to trading, most all risk managers will utilize options to mitigate the risk in their portfolios. In fact, minimizing the risk is the exact reason why options were created in the first place.
Systemic and unsystematic risks are measured differently. Investment returns are not know in advance and therefore are risky. Before the investment is made, one can only guess at what those risks might be. You can, however, guess in statistical terms. I return that you expect to receive from investing probably will not be the return that you actually receive. It will either be higher or lower. Expected returns are estimated by (1) analyzing a reasonable set of possible returns, (2) attaching probabilities to their occurrence, (3) weighting each return by that probability, and (4) adding them up. Variation around the expected return is measured statistically by either the variance or the standard deviation. Beta picks up the risk that cannot be diversified away. Because effective diversification eliminates all of the asset’s unique risk, the relevant measure of a single asset’s risk is not its standard deviation, but its beta . Beta indicates an asset’s contribution to the total risk of a portfolio.
One of the tools that traders use when trading options is to utilize numerous strategies that we refer to as spreads. In option trading, an option spread is created by the simultaneous purchase or sale of options of the same class on the same underlying security but with different strike prices and/or expiration dates. Any spread that is constructed using calls can be referred to as a call spread. Similarly, put spreads are spreads created using put options.
There are three great reasons to consider using spread trades in your trading plan.
In a moment, I am going to give you a few examples of option spreads for your consideration. I want to mention here that an option spread designed to profit from a rise in the price of the underlying security is called a BULL SPREAD. Conversely, a BEAR SPREAD is one where a favorable outcome is attained when the price of the underlying security goes down. Also, options spreads can be entered on a net credit or debit basis. If the premiums of the options sold is higher that the premiums of the options purchased, then a net credit is received when entering the spread. If the opposite is true, the a debit is taken. Spreads that are entered on a debit are known as DEBIT SPREADS and those that are entered on a credit are known as CREDIT SPREADS.
Bob Seger’s “OLD TIME RICK AND ROLL
Here is an example of a vertical spread, otherwise known as a bull call spread given the fact that the long strike is below the short strike. Both the buy and the sell sides of this spread are opening transactions, and are always the same number of contracts. The bull call spread, as any other spread, can be executed as a “unit” in one single transaction, not as separate buy and sell transactions. For this bullish vertical spread, a bid and offer for the whole package can be requested through your brokerage firm. As a side note….I NEVER enter a market order unless I absolutely have to and it is MOC (Market on Close). You can see that it has a 43% probability of profit given the market parameters at the time of the set up. The breakeven price is 509.40. This comes from the long strike added together with the debit amount of the entire trade. This is referred to as a “Debit Spread” since we would have a debit created in our accounts upon execution of the trade. There is a set floor and ceiling in place based upon the strikes. This pretty much looks like a collar trade which we talked about the last time we were together.
The bear put spread can be considered a doubly hedged strategy. The price paid for the put with the higher strike price is partially offset by the premium received from writing the put with the lower strike price. Therefore, the investment in the long put and the risk of losing the entire premium paid for it is reduced or hedged. To me, this is a better alternative to naked put selling especially if we increase the spread between the strikes if we have no problem buying the stock at the lower price. Once again, the long put with the higher strike price caps or hedges the financial risk of the written put with the lower strike price. If you get assigned an exercise notice on the written put, and must purchase an equal number of underlying shares at its strike price, we can sell the purchased put with the higher strike price. The premium received from the put’s sale can partially offset the cost of purchasing the shares from the assignment. The max loss for this spread will generally occur as underlying stock price rises above the higher strike price. If both options expire out for the money with no value, the entire net debit paid for the spread will be lost. The max profit will occur as the underlying stock price declines below the lower strike price, and both options expire in the money. This is the case no matter how low the underlying stock has declined in price. If the underlying stock is in between the strike prices when the puts expire, the purchased put will be in the money, and the worth its intrinsic value. The written put will be out of the money, and have no value.
Here is a cheat sheet on how the Greeks play into the vertical spread equation…..if you are interested in getting a copy of this, send me your email at answers@discoveroptions.com and I will forward this slide to you. Use it as a quick reference……
PRINCETON UNIVERSITY
Using calls, this strategy can be set up by buying long term slightly out of the money calls and simultaneously writing an equal number of near month calls of the same underlying security with the same strike price. This trade is perfect for the trader who is bullish for the long term and is selling the near term month calls with the intention to ride the long term calls for free. Once the near term options expire worthless, the strategy turns into a discounted long call strategy and so the upside potential for the bull calendar spread becomes unlimited. The max loss in this trade is limited to the initial debit taken to put on the spread. This happens if the stock price goes down and stays down until the expiration for the longer term call.
Sometimes we feel that the underlying asset will eventually appreciate, but the market conditions are such that it might be difficult to have any further upward moves in the short term. It this case, we could consider using the neutral calendar spread strategy. This involves buying at the money long term calls and simultaneously selling an equal number of near month, at the money…or slightly out of the money…… calls of the same underlying security with the same strike price. What we hope to accomplish here is to collect the premium from the near term calls because of the fast time decay when the asset is not appreciating. The max profit for this type of trade is limited to the premiums collected from the sale of the near term options minus any time decay fo the longer term options. Once the near term options expire, you may have the ability to increase the amount of premiums you take in depending on how far out you bought the long call. The max loss here is limited to the initial debit taken to put on the spread. This will occur when the stock price goes down and stays down until the expiration fo the longer term options.
Using calls, the bull calendar spread strategy can be set up by buying long term slightly out of the money calls and simultaneously selling and equal number of near month out of the money calls of the same underlying security with the same strike price. The trader applying this strategy is bullish for the long term and is selling the near month calls with the intention to ride the long term calls for free. Once the near month options expire worthless, we are left with the long term call option which will have unlimited upside potential. The max possible loss for the bull calendar spread is limited to the initial debit taken to put on the spread. This happens when the stock price goes down and stays down until the expiration of the longer term call.
As with all calendar strategies, it is necessary to decide on a follow up action once the near term options expire. This decision depends heavily on the current outlook of the underlying stock at the time.
The iron condor is a limited risk, non-directional option trading strategy that is designed to have a large probability of earning a small limited profit when the underlying security is perceived to have low volatility. It is constructed with a combination of a bull put spread and a bear call spread. Ideally, you would prefer the price to stay between the short strikes in order to maximize your profit potential. In this event, all your options will expire worthless and you will not have to take any action toward maintenance of the position. As you can see in the next slides, you have room for the underlying asset to fluctuate before option expiration.
As I have pointed out here, we are actually using two separate spread trades…….
(talk about graph--------show standard deviation and probability of success)
I need to point out that there is a down side here which can be substantial as compared to the profit potential. Maximum loss for the iron condor spread is also limited but significantly higher that the maximum profit. It occurs when the stock price falls at or below the lower strike of the put purchased or rise above or equal to the higher strike of the call purchased. There are certain triggers which will assist you in limiting your potential losses even further as well as maintaining the profit potential throughout the trade. These answers are found in our course dedicated solely on trading condors.
The majority of investors who have long stock positions which are currently trading lower than their entry points typically take on the old mentality of sitting tight and “holding for the long term’. They are hoping that ‘eventually’ the stock price will return to the original purchase price. This approach make take a long time if it ever happens! The stock repair strategy is used as an alternative strategy to recover from a loss after a long stock position has suffered from a drop in the stock price. It involves the implementation of a CALL RATIO SPREAD to reduce the break-even price of a losing long stock position, thereby increasing the chance of fully recovering from the loss. This strategy is able to reduce the breakeven at virtually no cost and with no additional downside risk. (providing the stock does not continue to decline in value) The only downside to this strategy is that the best it can do is to breakeven. This means that in the event that the stock rebounds sharply, the trader does not stand to make any additional profit. Construction of the stock repair strategy requires us to: Buy 1 ATM Call Sell 2 OTM Calls Here’s an example…..Suppose you bought 100 shares of XYZ at $50 per share in May and now the price has declined to $40 per share a month later. This leaves you with a paper loss of $1000. If you wanted to do this strategy, you would buy 1 July 40 call for $200 and sell 2 July 45 calls for $100 each resulting in a net debit/credit taken of zero! At July expiration, if the stock is trading at $45, both of the July 45 calls expire worthless while the long July 40 call expires in the money with $500 in intrinsic value. Selling this long call will give the options trader a profit of $500. Since his long stock position has now gained back $500 in value, his total gain comes to $1000 which is equal to his initial loss. This creates the stock repair as now he is at breakeven again.
PORSCHE 928
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I hope that in this short time, you received some value and that you realize that using a covered call strategy can be of great benefit in many ways. Our learning today is NOT a get rich quick strategy. You will not make an 800% return on one trade as others may claim. If that was the case, I would be sitting on an island sipping on Mai Tai’s and handing out $100 tips to everyone! My desire today is simply to tell you that utilizing risk management strategies; specifically, options… should be an integral part of your overall portfolio. And in doing so, each of us need to spend a few moments to determine which strategy will work best for us. In order to help us with this, I encourage each of you to continue to learn and gain the knowledge needed to become wise investors. Continue to INVEST IN YOURSELF!
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If you have any questions or would like to discuss strategy at any time, just shoot me an email at answers@discoveroptions.com. Thanks so much for joining me today. I wish you all many happy returns……