20100113-optionsprostrategies
TRANSCRIPT
Options Pro Strategies& Defense Tactics
Webinar Topic:“Delta Hedging With Outrights”
Presented by John F. Summa, Ph.DFounder & President, OptionsNerd.com, LLC
Copyright 2010 OptionsNerd.com, LLC
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
STRATEGIES OVERVIEW
Iron Condors
Call OptionsCredit Spread +
Put OptionsCredit Spread
Diagonal Spreads
Short FrontMonth Options +
Long BackMonth Options
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
Iron Condor Defense (Adjustment) Tactics: Butterfly Roll (Puts/Calls) Butterfly Ratio Roll (Puts/Calls) Asymmetrical Butterfly Roll (Puts/Calls) Delta Reversal Roll (Puts/Calls) Dynamic Delta Hedging (Puts/Calls) Layered Vertical Debit Spreads
Bull Call Spreads (Ratio Layering) Bear Put Spreads (Ratio Layering)
DEFENSE TACTICS OVERVIEW
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEW
Case Study:Delta Hedging An Iron Condor
(AKA Covered Strangle)
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
IRON CONDOR PROTOTYPEE-mini SP Futures Options
CallsSpreads:-5 OTM+5 FOTM
Net Credit CallSpreads
= $300
PutsSpreads:-5 OTM+5 FOTM
Net Credit PutSpreads= $300
Plus
CondorPremiumCollected= $600
Calls + Puts
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
Feb Iron Condor (March SPs = 1132)
Call (Credit) Spread (.4 P.Delta/DTE=37)
Sell 5 Feb 1190 Calls @ 4.25 Buy 5 Feb 1200 Calls @ 3.00
Net Credit = $1.25 ($62.50 x 5 = $312.50) Max Loss = $1,875
Put (Credit ) Spread (.4 P.Delta/DTE=37)
Sell 5 Feb 1080 Puts @ 9.50 Buy 5 Feb 1070 Puts @ 8.25
Net Credit = $1.25 ($62.50 x 5 = $312.50) Max Loss = $1,875
DEFENSE TACTICS REVIEWIron Condor Example
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEWFebruary Iron Condor P&L
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
Iron Condor Delta Defense Tactics Short Delta Hedging with Long call(s)
Buy in FOTM calls (Debit) Get Flat or Get Long Delta
Long Delta Hedging with Long puts(s) Buy in FOTM puts (Debit)
Get Flat or Get Short Delta
DEFENSE TACTICS REVIEW:Condor Hedging Tactics
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEWShort Delta Hedge: Buy 1 Feb 1210 ES Call
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEWShort Delta Hedge: Buy 2 Feb 1210 ES Calls
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEWLong Delta Hedge: Buy 1 Feb 1010 ES Put
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
DEFENSE TACTICS REVIEWLong Delta Hedge: Buy 2 Feb 1010 ES Puts
There is risk of substantial loss trading options and futures. Trade with risk capital only. Past performance is not aguarantee of future results. This is not an offer to buy or sell any security or commodity interest.
-The End-
Learn More AboutOptionsNerd.com's NextDefense Tactics Seminar
(January 30-31 in Burbank, CA)
Click URL Below For More Info:
http://www.optionsnerd.com/OptionsProStratPakSeminar.htm