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1. Reading my PALM ON PALM
(Front Page/Content)
... the stock went to 0 exit price target some contracts off @ 1.20 or higher leave rest on till Stock trades to 1.50=2.00   Now trading @ 1.485  3/19/2010  Took off come @ 1.485  ...
Saturday, 20 March 2010
2. Some Potential Naked Puts
(OBB Prodigy!/Theta Burn)
... following are some stocks I’m watching which I think may make for good naked put candidates at some point in the future: LMT: The large defense contractor trades at 10x earnings, is well capitalized, ...
Friday, 26 February 2010
3. 1.8- LEAPS
(Courses/Freshman 100 Level)
Long-term equity anticipation securities (LEAPS) are option contracts with expiration dates of nine months or more into the future. LEAPS are traded the same as other option contracts. The advantage is ...
Wednesday, 30 December 2009
4. 6.4- Bear Call Spread (Credit Spread)
(Courses/Undergraduate 200 Level)
... stock moves away from the strike prices of the bear call spread, the option contracts lose value. The ultimate goal of the investor is for both the options to expire worthless and to keep the credit received. ...
Wednesday, 25 November 2009
5. 6.1- Bull Put Spread (Credit Spread)
(Courses/Undergraduate 200 Level)
... stock moves away from the strike prices of the bull put spread, the option contracts lose value. The ultimate goal of the investor is for both the options to expire worthless and to keep the credit received. ...
Wednesday, 25 November 2009
6. 5.10- Psi
(Courses/Undergraduate 200 Level)
... priced into the value of the option contract. Psi, much like Rho, has minimal influence in option pricing models.  ...
Tuesday, 24 November 2009
7. 5.6- Theta (Short Options)
(Courses/Undergraduate 200 Level)
... positive because as time passes it becomes less likely that an option contract will finish ITM. This is positive for an investor who has written a option contract because they want the contract to expire ...
Monday, 23 November 2009
8. 5.5- Theta (Long Options)
(Courses/Undergraduate 200 Level)
Theta (θ), better known as time decay, measures the theoretical loss of an option’s extrinsic value as the expiration date of the contract approaches. Theta represents the extrinsic (time) value ...
Monday, 23 November 2009
9. 5.2- Delta (Short Options)
(Courses/Undergraduate 200 Level)
...  Apple December 220 call option premium is $1.18 and the Delta for the written call option is -.14: If Apple stock moves UP $1 in value, the call option contract will increase in value to $1.32 (negative ...
Saturday, 21 November 2009
10. 5.1- Delta (Long Options)
(Courses/Undergraduate 200 Level)
... Bullish Position Google December 580 call option premium is $9.00 and the Delta is .65: If Google stock moves UP $1 in value, the call option contract will increase in value to $9.65 (positive ...
Saturday, 21 November 2009
11. 5.0- Chapter 5: Meet the Greeks
(Courses/Undergraduate 200 Level)
Now that we have covered how to use options to speculate against future stock prices, we need to cover specific topics that will help an investor choose which option contracts to use when speculating.  ...
Saturday, 21 November 2009
12. 4.1- Option Pricing Basics
(Courses/Undergraduate 200 Level)
... to how option premiums are valued. There are six inputs that are used to determine the value of an option contract. They are the underlying stock price, strike price, time until expiration, volatility, ...
Thursday, 19 November 2009
13. 4.0- Chapter 4: Options Pricing
(Courses/Undergraduate 200 Level)
... Before the model was released, there was no clear way to value option contract premiums. Unfortunately, the model was designed for European-style, non-dividend paying stocks. If you recall from lesson ...
Thursday, 19 November 2009
14. 3.4- Market Makers
(Courses/Freshman 100 Level)
... underlying stock. This is where the market makers step in and take the opposite side of trades for both buyers and sellers of option contracts. Market makers attempt to remain completely hedged at all ...
Wednesday, 18 November 2009
15. 3.3- Order Types
(Courses/Freshman 100 Level)
When an investor places an order to buy or sell an option contract there are different order types that can be placed. This lesson will cover the basic order types when trading option contracts. To begin, ...
Wednesday, 18 November 2009
16. 3.2- Option Exchanges
(Courses/Freshman 100 Level)
When an investor places a buy or sell order on an option contract, the order is routed to many different exchanges where it may or may not find a counter party. Some of the major option exchanges include: ...
Tuesday, 17 November 2009
17. 3.1- Reading Option Chains
(Courses/Freshman 100 Level)
Option chains list the available option contracts that can be traded on an underlying stock. Not all stocks will have option contracts available to trade and the contracts will vary based on the underlying ...
Monday, 16 November 2009
18. 3.0- Chapter 3: Options in the Marketplace
(Courses/Freshman 100 Level)
Up until this point, we have covered option contracts and how they can benefit investors who want to own stock or hedge against stock they already own. This is an important technique to grasp in order ...
Monday, 16 November 2009
19. 2.3- Short Option Risk Graphs
(Courses/Freshman 100 Level)
We have looked at the buying side of option contracts. Now let's look at the selling side. When an investor sells an option contract they are said to be "writing" an option to the option buyer. ...
Monday, 16 November 2009
20. 2.2- Long Option Risk Graphs
(Courses/Freshman 100 Level)
... premium = $47 (if underlying stock price is less than break even at expiration, the option contract would expire worthless.) Payoff at expiration = Underlying Price - ( Strike Price + Premium Paid ...
Monday, 16 November 2009
21. 1.7- Exercise & Assignment
(Courses/Freshman 100 Level)
As we have talked about, option contracts give the buyer the right to exercise the  contract at any time before expiration (assuming American-style). When this happens, the seller of the option contract ...
Monday, 16 November 2009
22. 1.6- Option Prices (Premium)
(Courses/Freshman 100 Level)
The price of an option, also known as the premium, is made up of two factors: Intrinsic Value (moneyness) The intrinsic value of an option contract is the part of the option price that is In-the-Money ...
Monday, 16 November 2009
23. 1.5- Option Expiration Cycle
(Courses/Freshman 100 Level)
Expiration dates for option contracts on a certain underlying stock follow a predictable cycle. Every stock with listed options is part of one of three annual cycles that remains the same each year. The ...
Monday, 16 November 2009
24. 1.4- Option Styles
(Courses/Freshman 100 Level)
... to exercise the option contract at ANY TIME before expiration. European-style European-style options allow the option buyer to exercise the option contract ONLY on the last trading day before expiration. ...
Monday, 16 November 2009
25. 1.2- Basic Option Terminology
(Courses/Freshman 100 Level)
There are several basic definitions regarding option contracts that must be memorized. This lesson will introduce each one. Future lessons will cover them in more detail. Option Type All exchange-listed ...
Sunday, 15 November 2009
26. 1.1- Option Basics
(Courses/Freshman 100 Level)
There are two types of equity options: call options and put options. Both types can be bought and sold by investors. The definitions are as follows: Call Option a contract that grants the buyer ...
Sunday, 15 November 2009
27. 1.0- Chapter 1: What Are Options?
(Courses/Freshman 100 Level)
... A derivative is a financial instrument (an agreement between two parties) that “derives” its value from an underlying asset. There are many reasons investors utilize option contracts. They ...
Saturday, 14 November 2009
28. Education Overview
(Miscellaneous/Web Site Information)
... spread strategies, synthetic positions, contract adjustments and other advanced topics. Once the Graduate level is completed, students will begin to develop a trading plan and prepare for live trading. ...
Saturday, 14 November 2009
29. Graduate 300 Level
(Category)
Graduate Level lessons focus heavily on volatility-related content. and other advanced concepts. Other lessons include advanced spread strategies, synthetic positions, contract adjustments and other ...

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