Bearish Call Diagonals - Trade Options Like a DPM Webinars #10: Diagonal Spreads

Tweet Bearish Call Diagonals - Trade Options Like a DPM Webinars #10: Diagonal Spreads

http://www.hamzeianalytics.com/Educational_Webinars.asp - Learn how to trade a bearish call diagonal spread from The Admiral, a former CBOE Designated Primary Market Maker. Learn the key characteristics of call diagonal spreads and how to structure a call diagonal when you have a bearish view about a stock.

This an excerpt from "Trade Options like a DPM Webinar #10: Diagonal Spreads" - http://www.hamzeianalytics.com/Educational_Webinars.asp



"DIAGONAL SPREADS" OPTIONS WEBINAR DESCRIPTION (JUNE 8, 2010, 1800 CT)

An options strategy established by simultaneously entering into a long and short position in two options of the same type (two call options or two put options) but with different strike prices and expiration dates.




ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.

Assessing & Adjusting Diagonals - Trade Options Like a DPM Webinars #10: Diagonal Spreads

Tweet Assessing & Adjusting Diagonals - Trade Options Like a DPM Webinars #10: Diagonal Spreads

The challenge of trading option spreads is that option spreads can be so dynamic. As The Admiral, a former CBOE Designated Primary Market Maker, explains in this webinar, option traders have many angles to assess. Also, option traders have many opportunities if they know how to adjust option spreads to profit from changes in the market.

This an excerpt from "Trade Options like a DPM Webinar #10: Diagonal Spreads" - http://www.hamzeianalytics.com/Educational_Webinars.asp


"DIAGONAL SPREADS" OPTIONS WEBINAR DESCRIPTION (JUNE 8, 2010, 1800 CT)

An options strategy established by simultaneously entering into a long and short position in two options of the same type (two call options or two put options) but with different strike prices and expiration dates.





ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.

#3Gurus is Back. Another 2-Days of Options & Futures Trading Seminar

Tweet #3Gurus is Back. Another 2-Days of Options & Futures Trading Seminar

Load up your options trading toolbox with the knowledge, strategies, and tactics from the 3Gurus and 6 market experts. See what the gurus have in store to help you trade this current market and what's ahead:

• Options
• Futures
• Volatility
• Trading the Headlines
• Market Timing
• Technical Analysis
• Trade Setups
• Trader Psychology
• Trade Adjustments

and more! See the full schedule here.

2 Days, 3 Gurus + 6 Experts

• APRIL 26-27
• 8:45am CT - 6:30pm CT, both days
• TEN 75-min sessions with exclusive Q&A with presenters
• 5 Sessions per day
• A special panel session with The Three Gurus, moderated by CBOE Options Institute Head instructor Jim Bittman
• Accessible ANYWHERE IN THE WORLD from your computer
• Recordings for On-Demand Replay

For Only $149 $99*
*Early bird special until 4/20/11. Regular price $149

Special Market Report: Oil Prices - Fundamental Data vs. Fear in Libya & Middle East

Tweet Special Market Report: Oil Prices - Fundamental Data vs. Fear in Libya & Middle East

*CORRECTION: Date filmed - Friday, March 4, 2011.  
Dr. Joel Fingerman, founder of http://fundamentalanalytics.com/ joins Hamzei Analytics Educational Video Series from the Floor of the CME Group, to share with us critical oil and gasoline data relevant to the recent $15 jump in crude oil prices from concerns over Libya and the Middle East. Dr. Fingerman notes that the amount of oil Libya supplies is not critical and other OPEC countries can easily replace Libya's production. Also, the U.S. has a high supply of oil and gasoline in stock. So, looking at the NYMEX oil contracts open interest at highs, Dr. Fingerman believes that high oil prices are due to speculation and not based on the fundamentals.




Table of OPEC oil producing countries including Libya

U.S. Oil Stockpile

U.S. Gasoline Stockpile

NYMEX Non-Commercial Net Crude Open Interest

**Filmed Friday, March 3rd at 5:30pm CT from the trading floor at the CME Group.

How Options Expiration Affects Index Futures: January 2011 Expiration

Tweet How Options Expiration Affects Index Futures: January 2011 Expiration

Taking advantage of market data can help traders anticipate where a trade may go.  This video discusses the interaction between SPX index options expiration and S&P 500 futures.  The SPX options open interest tonight may dictate how futures trade at the open in the morning on Friday.  As off-the-floor traders in our HFT chatroom, we use this data to trade the S&P emini futures during the opening hour.  The data from OCC shows huge open interest at 1275.00 strike on SPX January options.  Meanwhile, the S&P cash closed at 1280.  There is a 5 point spread that's expected tomorrow morning for the market open.



This video was filmed at the CME Group. Follow the CME Group on twitter http://twitter.com/cmegroup

Checklist for Applying Option Strategies | Options Like a DPM Webinars #8: Ratio Spreads

Tweet Checklist for Applying Option Strategies | Options Like a DPM Webinars #8: Ratio Spreads

The Admiral, a former CBOE designated primary market maker, runs through a checklist to both master various option strategies and expertly analyze the market to determine which option strategy is the best for a particular stock at a particular time. Having gone through 8 Options Education Sessions in this "Trade Options Like a DPM" series, students should have enough tools in their toolbox to take advantage of any stock move and the possible scenarios.

This a Q&A excerpt from "Trade Options like a DPM Webinar #8: Ratio Spreads" - http://hamzeianalytics.com/pow_register.asp




"RATIO SPREADS" OPTIONS WEBINAR CLASS DESCRIPTION (December 13, 2010, 1800 CT)

An options strategy in which an investor simultaneously holds an unequal number of long and short positions. A commonly used ratio is two short options for every option purchased. A ratio spread would be achieved by purchasing one call option with a strike price of $45 and writing two call options with a strike price of $50. This would allow the investor to capture a gain on a small upward move in the underlying stock's price. However, any move past the higher strike price ($50) of the written options will cause this position to lose value. Theoretically, an extremely large increase in the underlying stock's price can cause an unlimited loss to the investor due to the extra short call.

ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.

Mastering Volatility for Ratio Spreads | Options Like a DPM Webinars #8: Ratio Spreads

Tweet Mastering Volatility for Ratio Spreads | Options Like a DPM Webinars #8: Ratio Spreads

Volatility is a key component of any options strategy. Understanding volatility can mean the success of a trade or a total disaster, painting oneself into a corner. In this excerpt from the Q&A session of "Ratio Spreads," the Admiral gives several tips and experienced insights on how to analyze volatility and some common traps. Also, he explains how news and seasonality may affect volatility in ways that is unintuitive, debunking some options trading myths that may have endangered traders.

This a Q&A excerpt from "Trade Options like a DPM Webinar #8: Ratio Spreads" - http://hamzeianalytics.com/pow_register.asp



"RATIO SPREADS" OPTIONS WEBINAR CLASS DESCRIPTION (December 13, 2010, 1800 CT)

An options strategy in which an investor simultaneously holds an unequal number of long and short positions. A commonly used ratio is two short options for every option purchased. A ratio spread would be achieved by purchasing one call option with a strike price of $45 and writing two call options with a strike price of $50. This would allow the investor to capture a gain on a small upward move in the underlying stock's price. However, any move past the higher strike price ($50) of the written options will cause this position to lose value. Theoretically, an extremely large increase in the underlying stock's price can cause an unlimited loss to the investor due to the extra short call.

ABOUT "THE ADMIRAL"

The featured speaker, whom we affectionately call "The Admiral," was a Designated Primary Market Maker (DPM) on the floor of the CBOE for five years. Although we're not using his real name (so don't ask!) suffice it to say that we consider him to be one of the most knowledgeable option traders on the planet. As a floor trader in the '80s and '90s he did the opening options rotation for 5-25 stocks the old-fashioned open outcry way—meaning he opened each option strike price for each of these stocks within the first 30 minutes of trading, both calls and puts.

That meant he had to price more than 500 option strikes, plus as a market maker he traded and kept the markets current. As a DPM, technology brought forth auto-quoting of option series, but pricing of those quotes remained his responsibility. Trading 1 million shares of stocks and 50,000 options contracts was a normal day for him. In 27 years at CBOE, he has traded through the crash of '87, the smaller crash of '90 and the tech bubble in 2000. He has traded three-digit volatility and seen every possible market environment imaginable. So, if you're going to learn options, it might as well be from the very best.