Learn to Trade From Experienced Chicago Floor Traders
A unique trading mentoring system: Options Mentoring and Futures Mentoring!
The Chicago School of Trading LLC is dedicated to teaching our students how to be successful options and futures traders in the Chicago Tradition. For generations, veteran traders have mentored new traders on a personal basis in the trading pits of Chicago's exchanges. Now that same one-on-one mentoring from successful veteran traders is available to you!
Before your mentoring sessions begin, you will be given an extensive course in the fundamentals of the options and/or futures market in video and text form. Your mentoring sessions will involve trading on a real-time simulated trading platform while your personal mentor evaluates your trading skills and strategy. Don't go it alone - Let us help you the way our mentors helped us when we started our trading careers.
Presentation on scrum methodology in March 2009 to train the team at Fifth Third to start using this agile methodology. Details have been blurred to protect confidentiality.
Presentation on scrum methodology in March 2009 to train the team at Fifth Third to start using this agile methodology. Details have been blurred to protect confidentiality.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2024 State of Marketing Report – by HubspotMarius Sescu
https://www.hubspot.com/state-of-marketing
· Scaling relationships and proving ROI
· Social media is the place for search, sales, and service
· Authentic influencer partnerships fuel brand growth
· The strongest connections happen via call, click, chat, and camera.
· Time saved with AI leads to more creative work
· Seeking: A single source of truth
· TLDR; Get on social, try AI, and align your systems.
· More human marketing, powered by robots
ChatGPT is a revolutionary addition to the world since its introduction in 2022. A big shift in the sector of information gathering and processing happened because of this chatbot. What is the story of ChatGPT? How is the bot responding to prompts and generating contents? Swipe through these slides prepared by Expeed Software, a web development company regarding the development and technical intricacies of ChatGPT!
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2024 State of Marketing Report – by HubspotMarius Sescu
https://www.hubspot.com/state-of-marketing
· Scaling relationships and proving ROI
· Social media is the place for search, sales, and service
· Authentic influencer partnerships fuel brand growth
· The strongest connections happen via call, click, chat, and camera.
· Time saved with AI leads to more creative work
· Seeking: A single source of truth
· TLDR; Get on social, try AI, and align your systems.
· More human marketing, powered by robots
ChatGPT is a revolutionary addition to the world since its introduction in 2022. A big shift in the sector of information gathering and processing happened because of this chatbot. What is the story of ChatGPT? How is the bot responding to prompts and generating contents? Swipe through these slides prepared by Expeed Software, a web development company regarding the development and technical intricacies of ChatGPT!
Product Design Trends in 2024 | Teenage EngineeringsPixeldarts
The realm of product design is a constantly changing environment where technology and style intersect. Every year introduces fresh challenges and exciting trends that mold the future of this captivating art form. In this piece, we delve into the significant trends set to influence the look and functionality of product design in the year 2024.
How Race, Age and Gender Shape Attitudes Towards Mental HealthThinkNow
Mental health has been in the news quite a bit lately. Dozens of U.S. states are currently suing Meta for contributing to the youth mental health crisis by inserting addictive features into their products, while the U.S. Surgeon General is touring the nation to bring awareness to the growing epidemic of loneliness and isolation. The country has endured periods of low national morale, such as in the 1970s when high inflation and the energy crisis worsened public sentiment following the Vietnam War. The current mood, however, feels different. Gallup recently reported that national mental health is at an all-time low, with few bright spots to lift spirits.
To better understand how Americans are feeling and their attitudes towards mental health in general, ThinkNow conducted a nationally representative quantitative survey of 1,500 respondents and found some interesting differences among ethnic, age and gender groups.
Technology
For example, 52% agree that technology and social media have a negative impact on mental health, but when broken out by race, 61% of Whites felt technology had a negative effect, and only 48% of Hispanics thought it did.
While technology has helped us keep in touch with friends and family in faraway places, it appears to have degraded our ability to connect in person. Staying connected online is a double-edged sword since the same news feed that brings us pictures of the grandkids and fluffy kittens also feeds us news about the wars in Israel and Ukraine, the dysfunction in Washington, the latest mass shooting and the climate crisis.
Hispanics may have a built-in defense against the isolation technology breeds, owing to their large, multigenerational households, strong social support systems, and tendency to use social media to stay connected with relatives abroad.
Age and Gender
When asked how individuals rate their mental health, men rate it higher than women by 11 percentage points, and Baby Boomers rank it highest at 83%, saying it’s good or excellent vs. 57% of Gen Z saying the same.
Gen Z spends the most amount of time on social media, so the notion that social media negatively affects mental health appears to be correlated. Unfortunately, Gen Z is also the generation that’s least comfortable discussing mental health concerns with healthcare professionals. Only 40% of them state they’re comfortable discussing their issues with a professional compared to 60% of Millennials and 65% of Boomers.
Race Affects Attitudes
As seen in previous research conducted by ThinkNow, Asian Americans lag other groups when it comes to awareness of mental health issues. Twenty-four percent of Asian Americans believe that having a mental health issue is a sign of weakness compared to the 16% average for all groups. Asians are also considerably less likely to be aware of mental health services in their communities (42% vs. 55%) and most likely to seek out information on social media (51% vs. 35%).
AI Trends in Creative Operations 2024 by Artwork Flow.pdfmarketingartwork
This article is all about what AI trends will emerge in the field of creative operations in 2024. All the marketers and brand builders should be aware of these trends for their further use and save themselves some time!
A report by thenetworkone and Kurio.
The contributing experts and agencies are (in an alphabetical order): Sylwia Rytel, Social Media Supervisor, 180heartbeats + JUNG v MATT (PL), Sharlene Jenner, Vice President - Director of Engagement Strategy, Abelson Taylor (USA), Alex Casanovas, Digital Director, Atrevia (ES), Dora Beilin, Senior Social Strategist, Barrett Hoffher (USA), Min Seo, Campaign Director, Brand New Agency (KR), Deshé M. Gully, Associate Strategist, Day One Agency (USA), Francesca Trevisan, Strategist, Different (IT), Trevor Crossman, CX and Digital Transformation Director; Olivia Hussey, Strategic Planner; Simi Srinarula, Social Media Manager, The Hallway (AUS), James Hebbert, Managing Director, Hylink (CN / UK), Mundy Álvarez, Planning Director; Pedro Rojas, Social Media Manager; Pancho González, CCO, Inbrax (CH), Oana Oprea, Head of Digital Planning, Jam Session Agency (RO), Amy Bottrill, Social Account Director, Launch (UK), Gaby Arriaga, Founder, Leonardo1452 (MX), Shantesh S Row, Creative Director, Liwa (UAE), Rajesh Mehta, Chief Strategy Officer; Dhruv Gaur, Digital Planning Lead; Leonie Mergulhao, Account Supervisor - Social Media & PR, Medulla (IN), Aurelija Plioplytė, Head of Digital & Social, Not Perfect (LI), Daiana Khaidargaliyeva, Account Manager, Osaka Labs (UK / USA), Stefanie Söhnchen, Vice President Digital, PIABO Communications (DE), Elisabeth Winiartati, Managing Consultant, Head of Global Integrated Communications; Lydia Aprina, Account Manager, Integrated Marketing and Communications; Nita Prabowo, Account Manager, Integrated Marketing and Communications; Okhi, Web Developer, PNTR Group (ID), Kei Obusan, Insights Director; Daffi Ranandi, Insights Manager, Radarr (SG), Gautam Reghunath, Co-founder & CEO, Talented (IN), Donagh Humphreys, Head of Social and Digital Innovation, THINKHOUSE (IRE), Sarah Yim, Strategy Director, Zulu Alpha Kilo (CA).
Trends In Paid Search: Navigating The Digital Landscape In 2024Search Engine Journal
The search marketing landscape is evolving rapidly with new technologies, and professionals, like you, rely on innovative paid search strategies to meet changing demands.
It’s important that you’re ready to implement new strategies in 2024.
Check this out and learn the top trends in paid search advertising that are expected to gain traction, so you can drive higher ROI more efficiently in 2024.
You’ll learn:
- The latest trends in AI and automation, and what this means for an evolving paid search ecosystem.
- New developments in privacy and data regulation.
- Emerging ad formats that are expected to make an impact next year.
Watch Sreekant Lanka from iQuanti and Irina Klein from OneMain Financial as they dive into the future of paid search and explore the trends, strategies, and technologies that will shape the search marketing landscape.
If you’re looking to assess your paid search strategy and design an industry-aligned plan for 2024, then this webinar is for you.
5 Public speaking tips from TED - Visualized summarySpeakerHub
From their humble beginnings in 1984, TED has grown into the world’s most powerful amplifier for speakers and thought-leaders to share their ideas. They have over 2,400 filmed talks (not including the 30,000+ TEDx videos) freely available online, and have hosted over 17,500 events around the world.
With over one billion views in a year, it’s no wonder that so many speakers are looking to TED for ideas on how to share their message more effectively.
The article “5 Public-Speaking Tips TED Gives Its Speakers”, by Carmine Gallo for Forbes, gives speakers five practical ways to connect with their audience, and effectively share their ideas on stage.
Whether you are gearing up to get on a TED stage yourself, or just want to master the skills that so many of their speakers possess, these tips and quotes from Chris Anderson, the TED Talks Curator, will encourage you to make the most impactful impression on your audience.
See the full article and more summaries like this on SpeakerHub here: https://speakerhub.com/blog/5-presentation-tips-ted-gives-its-speakers
See the original article on Forbes here:
http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/carminegallo/2016/05/06/5-public-speaking-tips-ted-gives-its-speakers/&refURL=&referrer=#5c07a8221d9b
ChatGPT and the Future of Work - Clark Boyd Clark Boyd
Everyone is in agreement that ChatGPT (and other generative AI tools) will shape the future of work. Yet there is little consensus on exactly how, when, and to what extent this technology will change our world.
Businesses that extract maximum value from ChatGPT will use it as a collaborative tool for everything from brainstorming to technical maintenance.
For individuals, now is the time to pinpoint the skills the future professional will need to thrive in the AI age.
Check out this presentation to understand what ChatGPT is, how it will shape the future of work, and how you can prepare to take advantage.
A brief introduction to DataScience with explaining of the concepts, algorithms, machine learning, supervised and unsupervised learning, clustering, statistics, data preprocessing, real-world applications etc.
It's part of a Data Science Corner Campaign where I will be discussing the fundamentals of DataScience, AIML, Statistics etc.
Time Management & Productivity - Best PracticesVit Horky
Here's my presentation on by proven best practices how to manage your work time effectively and how to improve your productivity. It includes practical tips and how to use tools such as Slack, Google Apps, Hubspot, Google Calendar, Gmail and others.
The six step guide to practical project managementMindGenius
The six step guide to practical project management
If you think managing projects is too difficult, think again.
We’ve stripped back project management processes to the
basics – to make it quicker and easier, without sacrificing
the vital ingredients for success.
“If you’re looking for some real-world guidance, then The Six Step Guide to Practical Project Management will help.”
Dr Andrew Makar, Tactical Project Management
2. Contents
Section I – Option Basics
Chapter 1- What are Options? ……………………………….………………………………… 7
Chapter 2- Fundamentals of Options………………………….………………………………... 15
Chapter 3- Value of Options……………………………………………………….…………….23
Chapter 4- Using Options in Trading Strategies…………………………………….………….. 29
Chapter 5- Review of Section I…………………………………….……………....…............. 37
Section II – Intermediate Strategies
Chapter 6- Vertical Spreads…………………………………………………………………...... 47
Chapter 7- Time Spreads……….………………………………………………………………..57
Chapter 8- Straddles and Strangles …………………….………………………………………..65
Chapter 9- Review of Section II…………………………………………………………………71
Section III – The Greeks
Chapter 10- Delta………………….…………………………….……………………...………..81
Chapter 11- Gamma………………………………………………..…………………………….89
Chapter 12- Theta, Vega, and Rho..…………………………………...........................................95
Chapter 13- Review of Section III………………………………………...……………………103
Section IV – Advanced Trading Strategies
Chapter 14-Synthetic Calls, Conversions, Reversals, and Jelly Rolls………………………….117
Chapter 15- Boxes………………………………………………………………………………129
Chapter 16- Butterflies………………………………………………………………………….137
Chapter 17- Front and Back Spreads…………………………………...……………………....151
Chapter 18- Section IV Review………………………………...………………………………159
Section V – Getting Started
Chapter 19 – Order Entry, Trading Accounts, and Trading Platforms………………………..171
Chapter 20 – Starting To Trade………………………………………………………………..177
3
3. For every exercise there is an assignment. Does this mean that when you exercise an
option the person that you originally purchased that option from is assigned? No, (although it is
possible, but highly unlikely, if the call seller is still short calls) assignment is random.
In order to insure the validity of each trade a general clearinghouse was established for
options transactions that is used by all major American Options Exchanges. It is called the
Options Clearing Corporation, more commonly referred to as the OCC.
A clearinghouse is an institution that insures that trades clear correctly. In other words,
insuring that each customer is given credit for every trade they make and that funds are
distributed correctly.
Buying Trade Selling
Customer/Trader Customer/Trader
$ $ Option
Option EXCHANGE
Brokerage/Clearing Firm Brokerage/Clearing Firm
Trade
$ Data $
Option Option
Clearing
House
Typical Clearing Operation
Once you have established a long or short position, then you are thrown into the general
OCC hopper. For every option contract that is exercised, the OCC randomly assigns someone
who is short that same contract to fulfill the obligation to take (as in the case of puts) or make (as
in the case of calls) delivery on that stock. Exercise and assignment can occur on any business
day prior to the expiration date for American style options. Exercise and assignment occurs only
at expiration for European style options.
18
4. Let us say that we purchase 10 XYZ July 60 Puts for 2.00. We have laid out $2,000.00
for the possibility of seeing XYZ plummet all of the way to zero. Since we would have a short
position in XYZ at 60 our position would be in-the-money at any point below 58. If XYZ were
to go all the way to zero we would pocket $58,000. A straight put purchase can only be
profitable with a downward movement in XYZ.
What happens when we buy the XYZ July 60 straddle ten times? We then stand to profit
whether XYZ goes up or down. We would have to pay a combined 6.50 for the straddle. That
would be a total of $6,500 for the opportunity to experience both upwards and downwards
movements in XYZ. We would now be in-the-money when XYZ surpasses 66.50.
Long XYZ July 60 Straddle
10.00
8.00
5 3.50 66.50
New downside new upside
6.00 breakeve n point breakeven point
4.00
L on g p u t
2.00
c ost = 2.00
Option Value
0.00
-2.00
L o n g call
-4.00
co st = 4 .50
T o ta l stra d d le co s t = 6 .50
-6.00
-8.00
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
XYZ Price
Lon g 1 Jul y 60 Call Lon g 1 XYZ July 60 Put Lo ng XYZ July 60 Stradd le
Our new upside breakeven point is now 2.00 higher. One always has to pay to play. We
would also now be in-the-money when XYZ trades below 53.50. Our new downside breakeven
point is 4.50 lower; again because of the higher premium for the straddle rather than for the put
66
5. that for every $1.00 increase in the value of the stock the put option value will decrease by
$.50.Put options have a delta range from 0.00 to –1.00.
Here are a few more guidelines regarding deltas. An at-the-money option has a delta
around .50. The delta for a call option rises the further the underlying stock rises above the strike
price. Conversely, the delta for a put falls (to a higher negative number – which is a good thing)
the further the stock price falls below the strike price. If a call is deep enough in-the-money, its
delta can actually approach 1.00. If a put is deep enough in-the-money, its delta can actually
approach -1.00. In both of these cases your options are appreciating at the same rate as an
equivalent number of actual shares.
The delta for a put option rises (to a lower negative number – a bad thing) the further the
underlying stock rises above the strike price. The delta for a call option drops the further the
underlying stock drops below the strike price. If a put or call is far enough out-of-the-money its
delta can actually approach zero.
A zero delta means that your option is so far out-of-the-money that it would require a
drastic change in the price of the underlying stock just to get back near the strike price.
83
6. XYZ Synthetic Put, 1973 Settlement Scenarios
XYZ @ 40 XYZ @ 50 XYZ @ 60 XYZ @ 70 XYZ @ 90
XYZ + 22.00 +12.00 + 2.00 - 8.00 -28.00
July 60 Call - 4.50 - 4.50 - 4.50 + 5.50 +25.50
Profit/Loss +17.50 + 7.50 - 2.50 - 2.50 - 2.50
As you can see, it was when XYZ was below 60 that our synthetic put picked up value
dollar for dollar. Our breakeven point would have been 2.50 lower at 57.50. OK, now you should
be able to see how a synthetic put works. If puts had been available in 1973, and we had
purchased an XYZ July 60 Put at 2.50, our profit and loss graph would have looked exactly the
same. You are probably thinking that this is an interesting history lesson but since time travel is
an unlikely prospect, who really cares? The real puts are listed now anyway.
XYZ July(1973) 60 Imaginary Put XYZ July(1973) 60 Synthetic Put
60 60
50 50
40 40
30 30
P rofit/Loss of
Profit/Loss Profit/Loss of Pro fit/Lo ss
20 20 S ynthetic X YZ
XYZ July 60 Put
July 60 P ut @
@ 2.50 2.50
10 10
0 0
-10 -10
90 80 70 60 50 40 30 20 10 0 90 80 70 60 50 40 30 20 10 0
XYZ July 1973 Settlement Price XYZ July 1973 Settl ement Price
Well we care about synthetic puts because of arbitrage opportunities involving synthetic
and real puts. Perhaps we should first explain arbitrage. Arbitrage is the simultaneous purchase
and sale of the same product in two different markets at the same time. An arbitrageur is trader
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7. Chapter 15:
Boxes
We learned in chapter 6 about the mechanics of vertical spreads. Now we will learn about
purchasing call and put vertical spreads of the same strike price at the same time. These spreads
are called boxes.
Boxes
The simultaneous purchase of call and put vertical spreads of the same stock
at the same strike prices in the same expiration cycle
If we buy the XYZ July 60 Calls for 4.50 and sell the XYZ July 65 Calls for 2.35. We
have then purchased the XYZ July 60-65 Call vertical spread for 2.15. We can only lose the
$2.15 in premium that we paid for the spread. The highest that the spread can go to is 5.00 for a
net profit of 2.85. At 65 or above we stop making money on the XYZ July 60 Calls.
Long XYZ July 60-65 Vertical Call Spread
Above 65
6.00
Calls stop making
money and so does
2.35
4.00 spread
Premium for
2.00
July 65 Call
Opti on
-4.50 – 2.35 = -2.15 Spread C ost
0.00
Value
-2.00
-4.00
4.50
Premium paid
5.00 (max spread value) – 2.15 = 2.85 max profit
for July 60 Call -6.00
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
XYZ Price
Long July 60 C all Short XYZ July 65 Call Long XYZ July 60-65 Vertical Call Spread
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8. Whenever we can go
Short XYZ July 60-65 Box
1.00
short a $5.00 box for greater
0.80
0.60
than 5.00, the difference
0.40
between 5.00 and our sale
0.20
Option
Value
0.00
price is the amount of profit
-0.20
0.20
-0.40
that we have locked in. Since
Profit on Short July 60-65 Box,
-0.60
wherever XYZ goes
-0.80 we collected $5.20 for the
-1.00
50 51 52 53 54 55 56 57 58 59 60
XYZ Price
61 62 63 64 65 66 67 68 69 70
WXYZ July 60-65 box we are
Short July 60-65 Box guaranteed a profit of 0.20.
Have you noticed something else about the boxes? When we go long the XYZ July 60-
65 Box we are buying the July 65 puts and selling the July 65 calls. That comprises two out of
the three legs of the XYZ July 65 conversion. We are also buying the July 60 Calls and selling
the July 60 Puts. That comprises two out of the three legs of the XYZ July 60 reversal.
We know that a 5.00 box always goes out at 5.00, so would anyone ever want to pay
5.00 for XYZ July 60-65 Box. If there is no possibility for profit why would anyone want to
establish such a position?
Well maybe someone who needed to roll out of an opposite position just might.
For example, which is safer, being long the XYZ July 60 Reversal or the XYZ July 65
Reversal? We are short puts in both positions, and since we are always more likely to be
assigned on the higher 65 puts, the July 60 Reversal is safer. If we are assigned on our 65 puts, it
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9. So now we have combined to pay out 2.15 for the XYZ July 60-65 Call spread, and
collect 1.65 for the July 65-70 Call spread. We have paid 0.50 for what is called the XYZ July
60-65-70 Call butterfly. We buy one each of the outside strikes (60 & 70) and sell two of the
middle strikes (65).
Long the XYZ July 60-65-70 Call Butterfly
6 .00
4 .00
2 .00
Option
0 .00
V alue
-2 .00
-4 .00
-6 .00
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
XYZ Price
Long XYZ Jul y 60-65-70 C all Butterfl y Long XYZ Jul y 60-65 Verti cal Call Spre ad
Short XYZ July 65-70 Cal l V ertical Spread
Whenever we buy the wings and sell the middle strike we are going long the butterfly.
Whenever we buy the middle strike and sell the wings we are shorting the butterfly.
Butterfly Spread Butterfly Spread
Buy 1 July 60 Call Buy 1 July 70 Call
Sell 1 July 60 Call Sell 1 July 70 Call
Sell 2 July 65 Calls Buy 2 July 65 Calls
Buying, or going long the Butterfly Selling, or going short the Butterfly
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10. immediately at the best possible price. Conversely, if you established a short position at 26 and
put a “buy stop” at 28.00, a trade at 28 would turn your buy stop into market buy order. Stop
orders are used primarily in the stock itself and seldom in options. After all, if you think about it,
an option contract is already kind of a stop loss order.
Using Stop Orders: Buying Microsoft @ 25 with a sell
stop at 23
30
29
28
27
26
M ic ro s oft
P r ic e
25
24
23
Sell stop “touched off”
@`23 and becomes
22 Initiate market order
21
position with a filled no worse than 22
buy @ 25 (first uptick
20
9 :3 0 9: 31 9 :3 2 9:3 3 9 :3 4 9 :3 5 9 :3 6 9 :3 7 9 :3 8 9 :3 9 9 :40 9 :4 1 9: 42 9 :43 9: 44 9: 45
Tim e
Using Stop Orders: Selling Microsoft @ 26 with a buy
stop at 28
30 Buy stop “touched off” @
Initiate 28 and becomes market
Stop orders are also used position with a order - filled no worse 29
sell @ 26 than 29 (first downtick) 28
27. 5
to establish new positions. If you
M ic ro s oft
26
were a “breakout trader” you P r ic e
25
might look at certain numbers or
22. 5
market levels that you deem
20
significant. Price levels that a 9 :46 9: 47 9: 48 9 :4 9 9 :5 0 9 :51 9: 52 9: 53
Tim e
9 :5 4 9 :5 5 9 :5 6 9 :57 9 :5 8 9 :5 9 1 0: 00
stock or other instrument has trouble getting through on the upside are called “resistance levels”.
Price levels below the market that hold up a market are called “support levels”. A breakout trader
would buy when a market went through or above a resistance level and would sell if the market
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11. went below a support level. Stop orders are, therefore, often used by breakout traders to establish
a new position.
Now that you know
Support and Resistance what kind of orders you can
enter, you need to open an
account. Nowadays that
Resistance means an electronic platform
Level
capable of trading all
exchange traded stocks and
Support Support Level options. With an options
Level
account, the more money in
your account the more flexible
your trading strategy can be. Remember when you purchase an option your losses are limited to
the premium you have payed. If you sell premium, however, your losses can be unlimited if you
are assigned on a losing position. Your brokerage firm will require more cash in your account to
short options or to short stocks.
Remember in chapter one how I told you that floor, or pit, trading is vanishing. When I
started almost every option traded was traded on a trading floor. Now it is completely the
opposite. Most options are traded electronically, either in sophisticated trading rooms or in home
offices around the world. The electronic platform you choose is probably the first major decision
that you will make in your trading life.
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12. Okay, now try to execute these trades and others by yourself until you are familiar with
the platform. Then you should actually attempt to make trades in options whose stock you
have studied and are prepared to employ option strategies. Then contact your mentor so we
can begin the process of taking you from simulated trading to real trading. Good luck and
good hunting.
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