Four Powerful Rules to Successful Option Trading by Larry McMillan
Product Description
Put your financial nightmares to rest by implementing McMillan’s personal options trading philosophy into your daily routine! Learn from the legendary master of options himself, as he provides you with profit-enhancing tools every success-driven trader should have in his arsenal. Gain insight as McMillan expounds on his powerful rules of success:
- Always use a model.
- Trade all markets.
- Use follow-up strategies.
- Only trade in accordance with your personal philosophy.
The strategic choice between hedging and speculating isn’t easy. This informative presentation will train you how to recognize and evaluate which trading scenarios are best suited for each option, so you can thrive in any market. You will get advice on how to eliminate frustration when things go wrong, how to most effectively manage your risk level, and what the concept of naked call writing is really about.
The in-depth insight and potent methods presented in this outstanding trading session will enable you to develop an action plan you can put into use immediately. Stop envying all those successful traders out there! With McMillan’s forceful trading system on hand, it’s your turn to step up!
Learn about Option (finance):
In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) “exercises” the option. An option that conveys to the owner the right to buy at a specific price is referred to as a call; an option that conveys the right of the owner to sell at a specific price is referred to as a put. Both are commonly traded, but the call option is more frequently discussed.
The seller may grant an option to a buyer as part of another transaction, such as a share issue or as part of an employee incentive scheme, otherwise a buyer would pay a premium to the seller for the option. A call option would normally be exercised only when the strike price is below the market value of the underlying asset, while a put option would normally be exercised only when the strike price is above the market value. When an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any. When the option expiration date passes without the option being exercised, the option expires and the buyer would forfeit the premium to the seller. In any case, the premium is income to the seller, and normally a capital loss to the buyer.
The owner of an option may on-sell the option to a third party in a secondary market, in either an over-the-counter transaction or on an options exchange, depending on the option. The market price of an American-style option normally closely follows that of the underlying stock being the difference between the market price of the stock and the strike price of the option. The actual market price of the option may vary depending on a number of factors, such as a significant option holder may need to sell the option as the expiry date is approaching and does not have the financial resources to exercise the option, or a buyer in the market is trying to amass a large option holding. The ownership of an option does not generally entitle the holder to any rights associated with the underlying asset, such as voting rights or any income from the underlying asset, such as a dividend.
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Course Features
- Lectures 0
- Quizzes 0
- Duration Lifetime access
- Skill level All levels
- Students 197
- Assessments Yes