The million-dollar bet on a speedy market rally

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Shortly after the market opened Wednesday, one trader bought 80,000 February 215-strike calls on the S&P 500 ETF (SPY) for 23 cents per share. In total, the trade (which was executed in a few separate blocks) cost $1.84 million in options premium. NOTE: Selling the...
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Option trading’s risky right?

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I can lose all my money, I can get a margin call and lose more than I put in the trade, 9/10 options expire worthless. You’ve heard that right? is it true? YES it is. BUT if you only put in $500 on a trade...
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You are in control

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Guess what? You don’t have to own stocks to make money in the market You don’t have to lose money when the market goes down You can make money without caring if the market is up or down You can control stocks without owning them...
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Risk and skew in options – ponder this

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Options are financial products, the premiums of which reflect the likelihood of that option expiring in-the-money at expiry. While this is at best a mathematical deduction, the sheer magnitude of premium will reveal the risk and reward adopted. Despite the assistance of mathematical models, a...
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 8660% in one day

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Did you know there’s one blueprint that worked in the crash of the 80’s,the rally of the 90’s, the tech bubble burst in 2001, and 2008/09 sell off and rally? And still works today? It’s straight forward definable and repeatable blueprint for trading success. A...
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 The Options Hunter Q & A – discipline

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You teach the disciplined approach to trading, can you explain what this is? The discipline is a psychological discipline, as well as a technical discipline. I teach to trade using technical approaches. I’m looking for basically V-shaped price configurations or W formations in the price...
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 Debunking the biggest lie in options trading

In exactly 4 weeks, you will embark on the most intensive and in-depth option course imaginable On the second day of the course, with weekly options expiring, we’ll go mining for out of the money nuggets It’s small group, hands-on, so you better bring your...
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 Taking the VIX Apart

While the S&P500 has rarely experienced an ordinate move of more than 5% in the last 20 years, the VIX is a device to represent volatility expectations. Expressed as the expected price movement within one standard deviation this encompasses the likely probability of all contingencies...
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 The Value of Open Interest

Particularly outside equity markets having a finite number of shares available, many traders ignore open interest records in their option trading strategies. Primarily this is due to the impossibility of differentiating whether the open interest …is long or short, and so whatever good that may...
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 Mechanics of the VIX

While the VIX (Volatility Index) only had its inception in 1993, it has since developed into an indicator, a tool, and a primary and secondary market with its own options market as well. The VIX is a measure of anticipated market volatility and compares to...
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