optionsstrategies.blogspot.com
Kennynah's Options Strategies: October 2009
http://optionsstrategies.blogspot.com/2009_10_01_archive.html
There was an error in this gadget. Tuesday, October 13, 2009. Rho Rho Rho Your Boat. Put-Call Parity Concept helps to explain several phenomenon in the options world. Particularly in what seems to be a disparity in values of Calls and Puts of the same Strike and same expiration month. For example, given the following scenario :. ABC Stock Price = $80. Interest Rate = 5%. Dividend Payout = $0.25. A 3-month Call - 80 Strike could be $3.75 and yet. A 3-month Put - 80 Strike could be valued at only $3.00.
optionsstrategies.blogspot.com
Kennynah's Options Strategies: November 2009
http://optionsstrategies.blogspot.com/2009_11_01_archive.html
There was an error in this gadget. Saturday, November 28, 2009. Trading Options on Goldman Sachs? GS - Goldman Sachs. As I looked at GS chart, I cant resist wanting to go bearish on this stock. GS is currently trading at $164.16 and has a current Historical Volatility of 33%. Using options, I can construct a bearish play, like so :. Long GS Dec09 165 Put and pay $5.60. Short GS Dec09 170/175 Call and receive $1.14. This position will cost a trader $446 and require a margin of $386. Take a look at GS Opti...
optionsstrategies.blogspot.com
Kennynah's Options Strategies: Why Conversions and Reversals Cause Stock Volume Spikes on Expiration Days
http://optionsstrategies.blogspot.com/2010/02/why-conversions-and-reverses-cause.html
There was an error in this gadget. Tuesday, February 23, 2010. Why Conversions and Reversals Cause Stock Volume Spikes on Expiration Days. To truly understand the cause of volume spikes on Option expiration days, we must comprehend the Put-Call Parity structure that is associated with Conversions and Reversals. Recall an earlier discussion about Put-Call Parity equation. in a gist, a Put is a Call and a Call is a Put. if this sounds confusing, you are on the right track 8-). Retail players do not usually...
optionsstrategies.blogspot.com
Kennynah's Options Strategies: Conversions and Reversals
http://optionsstrategies.blogspot.com/2010/02/conversions-and-reverses.html
There was an error in this gadget. Tuesday, February 23, 2010. Every last but one Fri of the month, across the board, stock volume transactions rise above average daily transactions. why does this happen? Most people will cite that it is because it is this day that equities and index Options and sometimes Futures expire. but so what that these derivatives expire? Why is it that when these derivatives expire, the overall trading volume of equities markets rise? The answer lies in Conversions and Reversals.
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: April 2010
http://kennynahinvestment.blogspot.com/2010_04_01_archive.html
Investment Strategies, Commentaries and Ideas. Sunday, April 11, 2010. My simple idea of a trading plan. I'll put them down in point form.simple english. no unnecessary pulling of wool over eyes. A) know what you are trading. If you trade futures, know the rules of the game.start time, end time, what econ data move the futures, know the daily volumes, know the price volatility, know when it expires, know what happens if you left the position into expiration, etc. B) have an entry and exit plan. Very ofte...
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: May 2010
http://kennynahinvestment.blogspot.com/2010_05_01_archive.html
Investment Strategies, Commentaries and Ideas. Sunday, May 23, 2010. Piercing Candle - A Reversal? You will see such a piercing candle formed last Fri, 21May2010, on SPX daily chart. But for the candle rookie reader, he might not take profits as the candle hit higher and see it turn back down later. and then say candles didn't work for him. In this sense, candle reading is a post mortem technical study. Sunday, May 16, 2010. Employees receive periodic job performance reviews by peers and/or their supervi...
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: Trading/Investment Review
http://kennynahinvestment.blogspot.com/2010/05/tradinginvestment-review.html
Investment Strategies, Commentaries and Ideas. Sunday, May 16, 2010. The way to improve, is to get better at what you do. Doesn't that sound just rhetorical? Employees receive periodic job performance reviews by peers and/or their supervisors. Behavioural science professors from ivy league schools write thesis about this subject. MNC HR departments implement such reviews. Employers spend resources and must be getting some real benefits out of such performance reviews. It is said that we make better trade...
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: October 2009
http://kennynahinvestment.blogspot.com/2009_10_01_archive.html
Investment Strategies, Commentaries and Ideas. Saturday, October 10, 2009. MacroView of Market Strength. 10 Oct 09 - MacroView of Market Strength. As we head into the last quarter of 2009, one outstandingly clear pattern is seen across almost all major ETFs representing all industry sectors including financials, transportation, mining, O&G, consumer, industrial, basic materials, biotech/pharma and with the exception of alternate energy and technology sectors. As with my earlier suggestions, I have no oth...
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: February 2010
http://kennynahinvestment.blogspot.com/2010_02_01_archive.html
Investment Strategies, Commentaries and Ideas. Saturday, February 27, 2010. I think it can only make sense with discussing stop loss quantum, when viewed from a bigger picture. The common Stop Loss Exit methods:. A) Long stock $1, stock drops x% = exit. B) Long stock at $1, willing to lose 50cents, stock drops 50% = exit. C) allocate $1 to purchase stock, buy and hold, as long as stock doesn't drop to $0, = no exit (% portfolio theory). And perhaps there are other variations to the above. C) willingness ...
kennynahinvestment.blogspot.com
Investment Strategies, Commentaries and Ideas: February 2009
http://kennynahinvestment.blogspot.com/2009_02_01_archive.html
Investment Strategies, Commentaries and Ideas. Saturday, February 7, 2009. 7Feb09 Where Do We Go From Here? 7feb09 - Post Market Review. SPX rose above 850 immediate resistance region to 869 and promptly stopped at MA50 resistance at the same value. Volume was slightly thinner than Thurs' session but was still 2nd highest registered for last week's session. Both RSI and MACD suggest a possible continuation. Good luck and HUat HUat! Subscribe to: Posts (Atom). View my complete profile.
