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Description of 100 Per Cent Return Options Trading Strategy

Options are currently experiencing an unprecedented boom as investors and speculators begin to realize that-traded properly-these fascinating markets can offer unlimited upside potential with limited downside risk.

Title Information

ISBN:

9780930233679

Pages:

224 pages

Format:

Hardback

Product Code:

9657

Publisher:

Windsor Books

Published:

01/04/1999

Edition:

1st Edition

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Contents of 100 Per Cent Return Options Trading Strategy

1. Introduction to Option Trading
The best option markets to trade
What are OEX and SEI options?
The option trading day for OEX and SEI
Option trading strategies
Covered short spread (Strangle) strategy
Naked Sigma short spread strategy
Long call and put delta strategy
SEI trading examples
Market signal charts to predict direction of market moves
Use of option hedge strategy to augment capital growth
What tools are needed for option trading?

2. Predicting Option Market Movement, Overview
What are some signals for OEX intraday movements?
What are some signals for SEI intraday movements?
Chaos patterns for predicting market movements
Impact of economic reports on market movement
The long bond: a signal for market direction
How far in-the-money for a long call or put position?
Some examples of OEX trades using market direction signals
Some examples of SEI trades using market direction signals

3. What Options to Use for Trading
Options and markets
Microsoft & Intel: stocks suitable for options trading
S&P 100 (OEX) index options
FTSE-100 (SEI) American style index options
Some general observations about American option premiums

4. Capital Growth Using the Delta Trading Strategy
How large a Delta should you request
When has the market moved enough o get your delta?
How to predict market direction
Examples of OEX and SEI delta strategy trades
Delta strategy opportunities during expiration week
What if the market switches direction against your Long?
What can happen when the SEI market direction switches
You can't make back a loss
Delta strategy for steady monthly income and capital growth

5. Covered Short Spreads (Strangles)
OEX 2 sided covered short spreads (strangles)
Using standards deviation (2 sigma) to predict market movement
Corrective actions
The Bull and Bear Covered short spread strategies
The Naked (non covered) short spread
Margin requirements for covered short spreads
Increasing your capital with covered short spreads

6. Generating and Interpreting Market Signal Charts
The OEX stochastics %K-%D chart
The OEX Welles-Wilder Relative Strength indicator chart
The OEX 9 Day minus 4 day moving average difference chart
The OEX 4 day moving average difference chart SEI charts used for decision making
SEI stochastics %K-%D chart
The SEI Welles-Wilder Relative Strength Indicator chart
The SEI 9 day minus 4 day moving average difference chart

7. Internet Option Quote Systems for Trading
What internet brings you
Registering with a quote system
Codes for CBOE option quote systems
The Lombard quote system for US options, indexes and stocks
The Interquote system for US options, indexes and stocks
The LIFFE quote system for UK stocks, options, and commodities etc.
The ESI quote system for SEI trading
CNN financial news for New York and London (on the internet)
Interactive Wall Street Journal Market News for US and UK (on the internet)
Barron's Wall Street Market Reports (on the internet)
Temple William's Daily Elliott Wave Report
Fiend's Superbear Market Report
John Boggio's Real Trader Market Report
A survey of real-time quote systems (on the internet)

8. A SEI Trading System Using EXCEL Workbooks FTS-1
The Ftsmkv2 Workbook: FTSE Market Variations
The FTschrts Workbook: FTSE Market Signal Charts
The Ftstrfrm Workbook: automatic calculations for FTSE trades
How to do SEI trading using the Delta Strategy
Non-directional long straddle strategy
Non-directional covered short spread: (CvSS) strategy, 1 and 2 sided

9. How to Build Your Capital safely
Directional and non-directional strategies
The two sided covered short spread strategy
The bull covered short spread strategy
The SEI long straddle strategy
The directional Delta strategy
Summary of capital growth strategies

10. Equations in Option Trading
Excel is a big help in generating option equations
Equations for standard deviation (2 Sigma) computations
Equations for 2 Sigma 2 sided covered short spreads
Equations for Bull one sided put covered short spreads
Equations Bear one sided call covered short spreads
Equations for 2 Sigma naked short spreads
Equations for Delta strategy using long calls or puts
Summary

Appendix A: OEXSTRGY6 - An OEX Trading System with Automatic Entry of Internet Option Quotes Available from the Author
Stochastics market indicator
Moving average difference market indicators
Welles-Wilder (RSI) market indicator
When to open a long call or long put
Use of the Welles-Wilder Relative Strength indicator RSI signal
Trading rules for OEXSTRGY6
The OEXSTRGY6 workbook sheets
Summary of main spread sheets in OEXSTRGY6 workbook
How to update spread sheets and charts for new option month

Appendix B: OPTRADE5 - An OEX Trading System, available from author
Stochastics market indicator
Moving average difference market indicators
Welles-Wilder (RSI) market indicator
Summary of workbooks for OPTRADE5
Trading rules for OPTRADE5
The OEXSCHRT.XLS workbook
The OEXMKTV2.XLS workbook
The OEXTRDFRM.XLS workbook
Summary of main spread sheets in OEXMKTV2 workbook
Monthly update of the two main spread sheets
Update procedure for all charts

Appendix C: The OEX
OEX: basic description and list of stocks
OEX basic review
The put/call ratio
Option premiums
Option premium indices
List of the 100 stocks included in the OEX index
What industry groups are the OEX components drawn from?
CBOE internet page charts

Appendix D: List of Index Options Traded in the US

Appendix E: Discount Brokers in Chicago and London and Internet Brokers

Appendix F: Ordering Excel Option Trading Workbooks