V.7:7 (233-234): Option shooters vs. spreaders by Jerry Kopf

V.7:7 (233-234): Option shooters vs. spreaders by Jerry Kopf
Item# \V07\C07\SHOOTER.PDF
Availability: In Stock

Product Description

Option shooters vs. spreaders by Jerry Kopf

Option market timers and option relationship traders occupy major places in the spectrum of call and put investors. Timers or "shooters" go for the "home run" by simply buying premium (i.e., going long a put or call). Relationship traders grind out small but consistent yardage by stacking probabilities in their favor. Because they are skilled at spreading and know beforehand what an option's price "should" be, that is, its theoretical value, they capitalize on price discrepancies.

Market timers make subjective decisions based on:

News Monthly trade and employment figures, the Producer Price Index and other external market data. A few years ago, when the M1 was in vogue, market timers keyed into Thursday afternoon's money supply figures.

Opinions From the forecasts of newsletter advisors to predictions of the "elves" on television's Wall Street Week.

Feelings Intuition about whether the next 50-point Dow Jones Industrial Average move will be up or down. Many market timers use charts or other technical indicators which "tell" them future market direction. Recognize that charts or waves are subject to the ability of the interpreter to read them correctly. In actuality, a subjective market call.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order