Options trading courses in australia
He is currently working as a private client adviser with Tricom in Melbourne. Trading experience quickly shows through when writing books about trading and trading methods. Katiforis knows the options market and it shows. This is an excellent discussion of options trading strategies for stock index, commodities, interest rates, currencies and other markets using a range of option instruments.
He includes strategies and tactics for trading directional and flat markets as well as trending markets. Each section includes a discussion of the characteristics of the market and the major factors which affect price behaviour. Each of the strategies discussed includes comprehensive notes on risk characteristics, profit potential, the effects of time decay and implied volatility. This is a very practical book.
Katiforis outlines some major principles in options trading used by professional traders but usually unknown to many private traders. This is an excellent book for traders interested in trading options.
For Australian traders this provides the most comprehensive covering of options instruments available. I have just finished reading your book on Option Strategies for Private Traders.
I found it very informative and interesting. You can be sure it will be widely used over the next few months. Unlike other books on this subject, yours cuts to the chase and gives me the information I want and is very easy to read. I have just finished reading your book, and really liked it. I thought you had a very good ability to explain things in an understandable manner, and I walked away from it much the wiser.
In fact, I have recommended it to a few friends who are into Options trading. In current times the market has fallen 8 - 8.
What if an investor could take advantage of a great dividend yield and the upward movements of a stock and remove any downside risk? Enter the Married Put strategy. It is used when the investor is bullish on the stock long term but is worried about short term uncertainty. We buy 1, XYZ Bank shares For every cent lost on the physical below the entry price, the equal and opposite gain would be made on the Put.
If the investor is still happy to keep the stock i. At this point the downside protection of the Put is removed. Or the put could be rolled e. There would be an additional cost here. At this point the investor may feel that the Put is no longer needed and it would lapse worthless.
Remember that if the investor is not comfortable with this strategy they can sell the stock and Put at any time to exit the position. Also there is a great variation to the Married Put which is the Leveraged Married Put where some Margin Lenders will lend the full value of the stock if the Put is in place. The Married Put is a simple and effective strategy that gives investors the ability to stay in the market through times of short-term uncertainty.
If anything, it gives the investor some time to make a measured decision at a cost that is far outweighed by the profit potential. In the event that an incorrect decision is made, the cost of that is limited to the cost of the option. Historically the market spends more time moving in an upward direction bull market , than in a downward trend bear market. That's good news for investors, as over time the bull market will win out in duration and the longer you hold your Blue-chip portfolio the greater the chance of positive returns.
On the flip side, the longer you hold your Blue-chip portfolio, the greater the chances are that you will encounter a correction. In my opinion the below are representative:. We insure our house. We insure our car. Some people even insure their pets Like all other options, they have Calls and Puts, they can be bought and sold prior expiry, they have an expiry date and a strike.
They are cash settled on expiry, which is when profit or loss is actually realised. The settlement Price expiry is the opening price of the index on the day of expiry.
Like with most options, if the investor believed the underlying asset was to fall they would look buy a Put to cover it. The XJO protection directly mirrors the fall in the market in this example because we have purchased the option at the strike that is exactly the same as the index level.
The same calculation can be used for any percentage correction in this example. Not many investors would have all stocks in their physical portfolio, or even ONLY blue-chip stocks. In the event of a correction your physical portfolio could fall more or less than the cover provided by the options you hold.
In the event that no correction occurs during the life of the Put cover, then the premium paid would be lost as the option expires worthless if the index is above at expiry.
In order to continue cover, another Put position would need to be purchased which would involve recurring outlays to afford protection. Over time this could become costly. Investors could use the dividends received on an annual basis to help fund the use of protections strategies like this. In summation, options give you options.
You may not have to liquidate your portfolio with the rest of the herd at a great loss. Options trading What is an mFund? Learn forex trading What is forex? Benefits of trading forex? Trading guides What is options trading? Is there any support on the platform?
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