The 10 most Powerful Options Trading Secrets by Bernie Schaeffer
Find out what the markets are really telling you from the “Father of Options” himself
Run time: 102 minutes. Recognized as one of the top market forecasters of all time and a long-standing member of the Trader’s Hall of Fame, Bernie Schaeffer has a unique talent for predicting market trends and capitalizing on them. An indispensable resource for traders of all levels of experience, this book offers you a unique opportunity to learn from the master his ten most powerful option trading secrets. Bernie begins with a thorough discussion of the most common pitfalls of trading, then, with the help of numerous case studies and anecdotes from his incredibly successful career in the markets, he describes his personal top ten trading tips, such as “trade only in the direction of the trend” and “always buy put options in addition to call options”.
- Offers a exclusive glimpse into the trading secrets of best-selling author and leading option guru, Bernie Schaeffer
- Clues you into the secrets of how he reads the markets, how he consistently bets against the crowd and wins, and why he vehemently rejects some of the most popular option strategies
- Includes valuable tips on using time stops v. price stops, to limit losses, why it is unwise to trade options solely on implied volatility, and much more
- Shows you how to use the master’s personal trading tactics to reduce risk, enhance gains and assert greater control over your profit potential
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 186
- Assessments Yes