tailieunhanh - The option trader s guide to probability volatility and timing phần 5

Bên dưới là dự kiến để di chuyển trong một hướng đặc biệt, nhưng Không phải trong một khung thời gian cụ thể Thương nhân thường quyết định rằng họ mong đợi một an ninh để tăng hay giảm, nhưng họ không có khung thời gian cụ thể trong tâm trí. | More free books @ 102 The Option Trader s Guide r Buy calls Buy puts V Figure Example of short-term trading signals on the S P 100 OEX . Exit trade an oversold reading if holding puts from another momentum oscillator. The Underlying Is Expected to Move in a Particular Direction but Not in a Specific Time Frame Traders often decide that they expect a security to rise or fall but they have no specific time frame in mind. Here too options can be used to maximize profitability but other concerns specific to option trading must be taken into consideration. Figure depicts trading signals for Intel from a trendfollowing system. The system generates a buy-calls or buy-puts signal and holds that position indefinitely depending on the action of the stock. As a result a trade could conceivably last a day a week a month or longer. However there is no way to know at the time of the initial entry signal how long the trade will last. This has important implications for an option trader. Option traders using a trend-following method such as this absolutely must take steps to minimize the amount of time More free books @ 103 Market Timing Í Buy calls Buy puts V Figure Trend-following trading signals on Intel. Profit-taking opportunity Exit trade decay their trades are exposed to. A trader trading without a specific time frame who routinely buys expensive . high-volatility options will invariably lose money in the long run because time decay or declines in volatility or both will eventually eat away too much of the profit potential. The Underlying Is Expected to Move Significantly but the Direction Is Unknown One opportunity that is unique to option trading is the ability to enter a position that will create a profit whether the price of the underlying security rises or falls. The most common approach is to buy a straddle see Chapter 15 which involves buying a call option and a put option simultaneously. The only reason to use this