Minimize risk and maximize your return with option spreads. Option spread trading is by far the most varied and versatile strategy for income generation, hedging, and speculation. To achieve longevity in the trading arena, you must understand how these spreads work and the ways to leverage them for a consistent flow of positive returns. The Trader’s Guide to Equity Spread provides the essential info you need to set up and manage option spreads. Trading expert Randy Frederick examines each spread strategy in detail. He provides real-world examples that can be applied to all option markets–equity, futures, stock index, and interest rate–to demonstrate effective ways to control risk and increase your profits. Frederick begins by explaining how the price of an option is calculated and how it relates to the underlying stock, exchange-traded fund, or index. He then introduces you to the spreads–from Vertical and Horizontal to Butterfly, Box, and Gut spreads–and helps you (more…)

Today’s complex world of options provides you with an abundance of option strategies. With the right methods on hand, you will be able to maximize your returns in no time. Join Allaire as he introduces you to a variety of powerful option techniques that you can put into use immediately. Ideal for the intermediate trader or investor, this cutting-edge video session takes you beyond the basics of options. In the end, optimal returns will no longer be wishful thinking. Watch your profits skyrocket as you start mastering these outstanding strategies!
Today’s complex world of options provides you with an abundance of option strategies. But how do you know which ones are right for you? According to Marc Allaire, well-known author and options expert, you have to determine the methods that suit your trading or investment style best. With the right strategies on hand, you will be able to maximize your returns in no time.

Join Allaire as he introduces you to a variety of power (more…)

Options Investigator CD-ROM included with Spreads book.

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The popular “The Options Course” author presents his proven techniques in a viewer-friendly, 90 min. video workshop that shows how to expand profit opportunities and manage risk with options. George makes spreading strategies understandable and easy to implement. His thorough coverage includes an overview of equity options. Using the basic bull call spread as his focus, Fontanills features simple strategies for structuring debit and credit spreads, the best market conditions for each, and how to achieve your trade goals by adjusting strike-price levels. Plus … – Why the lowest-priced option isn’t always the cheapest – How “in-the-money” spreads can be safer, even if they cost more – Making time-value decay your ally, instead of your enemy – Understanding how volatility patterns impact your trading selection

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Focusing on price-forecasting in the commodity futures market, this is the most comprehensive examination of fundamental and technical analysis available. Treats both approaches in depth, with forecasting examined in conjunction with practical trading considerations.

From the Publisher

Focusing on price-forecasting in the commodity futures market, this is the most comprehensive examination of fundamental and technical analysis available. Treats both approaches in depth, with forecasting examined in conjunction with practical trading considerations.

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Widely associated with a high risk level, options are often a case of concern when it comes to trading. By taking a closer look at them, however, their flexibility may actually work in your favor.

Options can be used to structure an arsenal of diverse strategic positions many of them with a very high probability of success and a limited chance of risk. Tony Ciccone, noted investment advisor and Managing Director of OptionVue Capital Management, shows you how to put together a number of these high-probability trades. Get the hang of legging in and out of combination trades! Accompanied by real-world examples, this presentation can help put you on your way to successfully carrying out limited-risk spreads and combination positions.

Key points of this powerful session include:

–News, earnings, emotions, and other factors that drive shifts in volatility
–Using percentile rankings to evaluate current volatility levels
–Structuring strategies to put time decay on (more…)

Just like the seasons in which flowers blossom in the spring, torrential downpours come in the summer, the leaves change in the fall, and snowflakes fall in the winter, there are patterns that exist within the stock market that recur year after year.

For example the Santa Claus rally usually takes place during the last 5 trading days of the year and the first 2 trading days in January. This time period has averaged a 1.4% gain since 1969. If Santa fails to appear this usually portends a bear market.

One of the most famous and consistent patterns is the so called “January Effect,” in which small cap stocks have outperformed large cap stocks 41 out of 43 years. The run up generally begins in mid-December and most of it ends by mid-January.

Then there is the January barometer in which the first 5 trading days of the year act as a gage for how the rest of the year will turn out. This has been a very effective tool in which the last 36 times the first 5 days have been up has led to gains for the year 31 times. The average gain in each of the 36 years has been 13.1%.

In nine out of the last fourteen post election years the S&P has shown a loss during the first five days of January, six of which resulted in a full year’s loss of 11.1%. This leaves five post election years where there were gains during this period. One of these years ended up being a loser, but four of these years the average gain was 22.6%. So investors should watch the first few days of January closely.

There are other things one can take a look at when examining yearly patterns. For example the days before and after certain holidays generally show a tendency towards bullishness. Under the democrats markets usually show bigger gains than when republicans are in power. The last two years of a presidency have been substantially more bullish than the first two years, with the third year showing an average of a 10.6% gain and the fourth year a 6.7% gain.

When considering seasonal patterns one should never rely on these alone for taking trades, because unusual events like war, acts of terrorism, and acts of God can disrupt these patterns. However when combined with with technical and fundamentals these patterns can act as a road map for decision making in the markets.