Ratio Spreads, Skewness & Kurtosis (Options trading)

273 STUDENTS ENROLLED

    In this module you will progress to the most sophisticated level for an options trader. You will learn about ratio spreads, collars, skewness and kurtosis. This is the nuanced world that professional traders inhabit.

    Ratio spreads indicate that the number of contracts bought and sold in a particular spread is uneven.  The defined risk that exists in a straight vertical spread does not apply to ratio spreads where there are more options bought than sold. This has to do with the velocity with which a particular underlying moves in a certain direction. You’ll be taught how to take advantage of that relationship and how to profit from it.  That also applies to spreads where there are more contracts bought than sold.

    Collars refer to the strategy where an underlying such as a stock has its value collared by the purchase of a below market put along with the sale of an above market call. You’ll see how this strategy converts a stock shareholder into the owner of a vertical bull call spread or put spread. In the commodities world they are also referred to as “fences.”

    Skewness might be the most important concept in the options trading world. I know that I look at two factors when I plan on trading a certain underlying, skewness and liquidity. Skewness reveals how fast it moves in one direction versus the other. Kurtosis refers to the pricing of out of the money options and their relationship to at the money options.

    Course Curriculum

    Options trading module 7
    A perfect point of skew 00:05:00
    Establishing an option put ratio back spread 1 00:05:00
    Managing and profiting on volatility 1 00:05:00
    Buying downside puts to collar exposure 00:05:00
    Out of the money call ratio spreads 00:05:00
    Trading a quiet forex market likely to breakout 00:05:00
    Trading options on inverse and ultra ETFs 00:05:00
    Establishing an option put ratio back spread 2 00:05:00
    Managing and profiting on volatility 2 00:05:00
    Module 7 video 00:30:00
    Options trading module VII quiz 00:00:00

    Course Reviews

    4.5

    69 ratings
    • 5 stars0
    • 4 stars0
    • 3 stars0
    • 2 stars0
    • 1 stars0

    No Reviews found for this course.

    TAKE THIS COURSE
    Clear
    SUBSCRIPTION FOR 3 months
    • per 3 months
    • 3 months

    Courses

    Current job opportunity

    All rights reserved @ www.modrika.com 2016