Professional Documents
Culture Documents
by Dan Sheridan
Presented by
The Options Industry Council
Presentation Outline
Surviving
-
a down market
Dans
Change % Change
July 19
851.85
+ 5.94
July 20
836.44
- 17.41
- 2.04%
July 23
835.62
- 0.82
- 0.10 %
July 24
811.62
- 23.76
- 2.84%
July 25
812.50
+ 0.64
+ 0.08%
July 26
791.48
- 21.02
- 2.59%
July 27
777.83
- 13.65
- 1.72%
Before We Move On
Standard Deviation Review
Standard
-
deviation formula
Days to Expiration
365
Example
-
What
RUT
Price Change vs. Implied Volatility
Price
Implied Volatility
Example
RUT
-
price = $19.40
implied volatility 18.3%
time value = $19.40
price = $32.30
implied volatility 20.2%
Time value = $32.30
Downside
Break-even Point
= 832.62
Upside Break-even Point
= 877.45
price = $19.40
implied volatility 18.3%
price = $32.30
implied volatility 20.2%
A Plan Is Everything!
Dans sample plan:
Have
-
Have
-
When
-
to take profits?
- $59*
Down:
Tips:
Have a plan.
When
November
-
& December?
What
1-888-OPTIONS
www.888options.com