20100113-optionsprostrategies

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