Intermediate | Modrika

Options Trading

modrika — Tue, 22 Mar 2016 12:05:56 +0000

Options Trading was designed by Dan Keegan, a 38 year veteran of options trading. It is composed of seven separate modules. It begins with the market fundamentals and then options fundamentals. The next module shows how options can be used in conjunction with an equity or futures position. The third module deals with the most basic of options spreading techniques, vertical spreads. The fourth module once again deals with vertical spreads of a more complex manner. The fifth module deals with time value spreads where hedging takes place amongst different expiration cycles. The sixth module deals with the risk control tools that every options trader should have a thorough knowledge of, the “Greeks.” The seventh and final module deals with complex ratio spreads and the difference in pricing between out of the money put and call options. If a trader feels that they need help in only one area then they can choose the module that fits their needs. The overall course, however, is designed to take in all of the modules in an orderly manner. Each module has a quiz at the end of it. It is suggested that you only advance to the next module after you have scored at least 80% in the quiz that you have taken. If you purchase the entire seven modules together, not only do you receive a significant discount but you will also receive a 209 page text written by me. Every module has a power point and webinar produced by me. It also has many articles and webinars created by the top experts in the field of options trading.

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Time Value Spreads

modrika — Sat, 19 Mar 2016 14:52:57 +0000

Time spreads in options refer to the creation of a spread involving the sale of an option in one expiration cycle and the purchase of an option in another expiration cycle. They have the same strike price and are either all calls or all puts. They are also referred to as calendar spreads or horizontal spreads, as in time horizon. They are not to be confused with futures time spreads that have nothing to do with strike price. I refer to them as time value spreads.

Relative time value is what the spreads are all about. These spreads give you the opportunity to benefit from the wasting asset aspect of options when you buy the spread due to the front month option decaying more rapidly than the back month option. A big movement in the underlying will be detrimental to profitability when you buy the spread. The opposite occurs when you buy the front month and sell a further out month.

You will also learn how diagonal spreads work. Diagonal spreads combine elements of vertical spreads and time value spreads. You buy an option from one expiration cycle at a certain strike price while you sell an option in a different expiration cycle at a different strike price.

You will see how these spreads work when they are carried all of the way to expiration and also how they unfold before expiration. This will allow you to learn how to adjust these positions to your benefit.

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More Complex Vertical Spreads

modrika — Sat, 19 Mar 2016 14:51:47 +0000

This section looks beyond the basic vertical and butterfly spreads. You’ll learn how to construct and adjust uneven butterfly spreads, skip strike butterfly spreads, iron butterflies and iron condors. The basic butterfly spread that is purchased consists of layering a bear vertical call spread on top of a bull vertical call spread. The option that is sold for both the bull and bear vertical spreads is the same strike price. When buying this spread you are hoping for very little movement in the underlying if the middle strike price is close to where the underlying is currently trading. Buying a call butterfly above that level is bullish while buying a put butterfly below that level is bearish.

In an uneven butterfly spread you will learn how to vary volume and the width of the two vertical spreads that you are layering on top of one another. This creates different maximum profits and losses at different levels. The profit and loss characteristics remain defined, however. The skip strike butterfly keeps the volumes of a normal butterfly intact while varying the width of one of the vertical spreads.

You will learn how to construct an iron butterfly by combining a straddle with a strangle. You will also learn how to construct an iron condor by combining a purchase of a strangle with the sale of an equidistant strangle.

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Vertical Spreads

modrika — Sat, 19 Mar 2016 14:51:17 +0000

If you plan to stick around for an extended period of time as an options trader then you had better learn how to become a spreader. You received an important taste of that in Module #2 with straddles and strangles. The next major category to learn about is basic vertical spreading. When you buy an individual option your potential upside for a call is unlimited and for a put, while it is not unlimited since the underlying cannot go below zero, it is a very large number. The downside of long options is that you own a wasting asset. When you sell an option then you reap the benefits of the erosion of time value in the premium of that option. You are giving somebody else the leverage that options possess in return for that benefit. The downside of short options is the unlimited risk associated with them.

In a basic debit or credit spread you buy and sell the same number of options, all calls or all puts, in the same expiration cycle at different strike prices. This substantially cuts down your risk should you be wrong even though it does limit your profits should the position move in your favor by a large margin. It is much more likely to hit singles and doubles than to hit a homer. Having been involved in options trading for over thirty-five years I can attest to the fact that traders who swing for the fences don’t last very long.

Beginning retail traders frequently believe, and are led to believe, that credit spreads are superior to debit spreads. You’ll learn that that is not true.

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Microsoft EXCEL and VBA Programming

modrika — Wed, 23 Dec 2015 13:02:49 +0000

Excel Programming Practice delivers state-of-the-art programming precepts by manipulating objects constituting the Excel application and by using custom-designed user-forms to develop solutions that are fully attuned to a situation. Excel exposes two access points to the functionality of the product: The first access point is via the familiar Graphical User Interface (GUI) – the access point for 95% of Excel users. The second access point is via manipulation of objects constituting the Excel application – Microsoft exposes underlying objects for programmatic manipulation.

For sophisticated applications, there is no alternative but to work with Excel Objects which are manipulated using Visual Basic for Applications, the language for programming Excel. While some users program Excel using Macros, the true power of Excel can be accessed only with visual basic code. Many enterprises are unaware that the database in which they have invested millions of dollars is good only for storing and retrieving data but ill-suited for numerical analysis for which Excel is the appropriate tool. Thus, databases and numerical analysis tools (such as Excel) have distinct roles to play and an Excel based solution often requires the data component of the application to be supplied from an external source such as the Internet or the back-end server.

This course comprises of slide presentations, problem solving, and discussions on

Conceptual topics,
The architecture of the Excel User Interface,
The Excel Programming Architecture,
Important features of Excel,
Excel objects and object hierarchy,
The structure of the visual basic language for programming Excel.

Participants will be divided into groups of two to four and each group will work on situations using Excel; participants will receive a CD with topics for problem solving and will be encouraged to discuss and question.

Who Should Attend:- Candidates who are having any graduate degree.

Topics:-

Components of Financial Modeling
Definition of Financial Modeling
Introduction to Financial Modeling
What is not a Financial Model
Advantages of Financial Modeling
IPO Framework
Layout Issues
Examples of Models
Databases and Spreadsheets
Excel Overview
Accessing Excel
Code Modules
Objects
Collections
Manipulating Objects
Identifying Objects
Worksheet as a Platform
Form as a Platform
Requirements for Modeling
- Arrays
- Functions
- Built-In
- Analysis Tool Pak
- User-Defined
- Names
- Formatting Values
- Excel Controls
- Add-Ins
- Data Validation
- Data Management
- Lists
- Data Filters
- D Functions
- Pivot Tables
- What-If Analysis
- One Variable Data Tables
- Two Variable Data Tables
- Goal Seek
- Solver
Scenario Manager
Entry Points into Excel
GUI Vs Code
Visual Basic Code
Parts of a VB Procedure
Executing Code
Manipulating Excel with Objects, Properties and methods
Object Hierarchy
Object Collections
Excel Object Model
Macro Recorder
Control Structures
Types of Control Structures
Excel Events
User Forms
VB Controls
Alternatives to Forms
VB Functions
Object Browser
Range Object
Worksheet Object, Properties, Methods and Events
Range Properties and Methods
VB Variables and Constants
Arrays
VB Operators
Examples of Code
Hands-On Programming

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14 Days Free Trial for Subscription

modrika — Fri, 13 Nov 2015 08:04:45 +0000