| Instructor: | Carley Garner |
| Description: | If you are like most traders, your trading account would be much better off if you had only sold every option that you have ever purchased. This isn't an accident, options are priced to lose. I have witnessed beginning traders lured to the markets in droves looking to participate in long option strategies. Their attraction stems from the fact that option buyers are faced with the prospects of unlimited profit potential and limited risk in the amount of premium paid plus commissions and fees. The hazard in this type of mindset is that although one’s losses are limited, it is highly likely that an option buyer will lose some or all of the value of the option. Several studies suggest that more options than not expire worthless, accordingly it seems logical that selling options as opposed to buying them is a preferential strategy. Unfortunately, many retail traders are stuck in a long option only. |
| Duration (hours): | 1 |
| Target Audience: | Finance professionals who need to understand the mechanics of and products in option markets. |
| Prerequisites: | working knowledge of options is assumed |
| Learning Objectives: | Students will be able to:
|
| Detailed Outline: | What is option writing Playing with Trading implied volatility in conjunction with time value erosion Shifting the odds of success in your favor through market timing Being aware of technical and fundamental factors Break-even calculation Risk management Selling strangles Dealing with margin calls; don't throw in the towel....Adjust! |
 |
|