Location: This meeting will be conducted on-line, via Zoom. Registration will be required. Click here to register for this meeting.
Selecting the Right Options Strategy
Many options traders first begin with options as a cheaper way to trade stock. Maybe you did too. They have an opinion about what direction the stock will move but want a less expensive way or more leveraged way to take advantage of the direction. Unfortunately, while the stock may have moved in their direction, they find they did not make as much or even lost money even though they were right.
Options are more complex and have more subtleties than stock. Options pricing reacts to not just price direction but also has a time and volatility component. How does this all work? We will review Price (delta and gamma), Volatility (vega), and Time (theta) and how they affect the various options strategies. We'll discuss how you can form an opinion on each of these elements. We will then use your opinions about the direction of each of these components to help guide you to the best options strategies to use. Finally, you will hear how some experienced traders apply their opinions on price direction, volatility, and time to make their options strategy selection.
This session is great for beginners and experienced traders alike. It's a good introduction for the beginning options trader and a nice reminder for the experienced trader. Attendees will be able to use an options selection chart that can be used for individual strategies but can also be applied to a portfolio. Don't miss this chance to understand how to make options strategies work in your favor.
Dennis Wong is a full-time trader and retired Fortune 500 executive. He has a BSEE from UC Berkeley and an MBA from Santa Clara. His background has been in systems design, product management, marketing, and business & corporate strategy. He started trading equities in 2002 and options in 2005. His favorite strategy was the butterfly but has since moved to trading directionally during the long bull market and short term bear markets. Dennis is a high volume, technical momentum trader and is experienced with both directional and theta decay trading.
Jim Norton's background is that of electrical engineering and business management. Primary trading interests are equities, options, and futures. Trading stocks since the 80s, serious options since 2002 and still learning.
Jim notes that, "It is easy to learn trading strategies, the challenge is knowing your limitations while developing the patience and skill to execute effectively."