Have you wanted to get into Options Trading but are too scared because they seem complicated and risky? Are you trading in options with little or no significant results?
Volatility and Probability program that calculates the probability of a stock price.Powerful Innovative intuitive and Forecasting Software as used by professional Bankers and Options Trading Companies.
Powerful Nobel Award Winning formulas. Using the leverage of the most powerful mathematical statistical formulas that are used by most major investment institutions and many successful professional Options Trading Companies and individual Options traders.
Simple user interface. Option trader simply inputs month trading prices and the program does the rest. Includes:
Bell Curve graph shaded bell curve graph to give the trader a quick visual to immediately see winning trades.
Use bell curve graphs with inbuilt formulas to immediately spot 90% of winning trades.
Scenario panels allows the trader to forecast where a price of an Option will be at a give time. Us the most powerful mathematical formulas at your disposal simply add target prices for down ward or upward trends.
The program provides immediate answer as to the probability of an Options Price being at the desired target at a given time in the future.
Incredibly accurate Nobel Award Winning statistical Mathematical Formulas.
Option Cast takes the complication and confusion out of what is a little understood but incredible successful and accurate trading method of Options Trading.
This is the very method that the major financial institutions use in options trading yes there are some who have been quietly milking the markets for years. Professional Traders and Bankers use a tried and proven method that has been around for decades but only known by a select few.
This program with its powerful simple to use formulas is available to you at the fraction of the price of any similar programs or systems.
We can find out the size of the movement of an options price, NOT the direction of the movement of the price we can implement a simple option trading strategy and make money with it. This is what the professional traders have been doing for years to make lots of money in options trading.
To the seasoned trader and wealthy Banker this is no secret. Using Volatility and Probability to find where a price will be in the future has been used by professional options traders successfully over and over again. When many people hear of Volatility+Probability+ Standard Deviation Divided by Normal Standard Distribution multiplied by the square root of….etc….etc. They run scared! Most traders immediately think that one has to hire a NASA Mathematician to figure this out, or that its so complicated and involved and that it’s only for a select few! True!
Volatility analysis is one of the least understood aspect of option trading, yet it is the cornerstone trading system of some of the biggest and most profitable options trading firms in the world! READ THAT AGAIN! Bankers and professional traders do not change their system of trading.
Why would you when you are making millions in profits. To the average trader it looks all too daunting….BUT……Finally a program that makes this as easy as pushing a few buttons. Once this is done the complex mathematical formulas are done for you in seconds. Keep reading and see how easy this is. What if we told you that to use the same system the pros use to milk the markets simply requires that you fill in the prices of a stock for the last 20 days?
That’s it!….the resulting probability is then given to you instantly!!! Not only that, what if we were to tell you how you can quickly spot a 90% trade winning option? Get the same results that the pros receive and use to make their millions in trade profits are revealed to you. Not only that you can also find out what the likely hood of a stock option price staying within a trading range so that you can comfortably trade safely. You can even create certain scenarios to find out a given “if” the price was such and such where would it be in any given time?” So what is this software? We call it Option Cast© Using Nobel Award Formulas to calculate probability.
A fully automated volatility and probability program that puts the odds in your favor. Finally you can use what the expert traders have been using for years in options trading! Find probability using volatility,Option Cast© is a very simple to use program that lets you find the probability of an option staying within a given price range.
Option Cast© uses Nobel Prize winning statistical formulas,Option Cast© also allows you to Pick trades with a high probability of success,Option Cast© shows you how to pick a trade with a 90% probability of success. Includes a Black Scholes Calculator, Graphs of the Bell Curve,Option Cast© uses standard deviation points. All you have to do is enter the prices of a stock. No calculating long formulas, no deciphering the mathematical proximity, no guess work, no secret rituals or old men with beards and abacuses! The answer is supplied immediately, all you have to do is decide to trade or not!
If you are an options trader or are waiting to get into options trading you know that one of the hardest aspect of trading is to make a decision, should you put down? should you call up? do you stay out of the trade? then there are the emotions to deal with, should I risk this?, am I going to miss out?
With Option Cast© you are given the most credible forecast of a price that you can get.
No more decision dallying! with OptionCast© you know EXACTLY where you stand on a trade the only decision will be either Yes or No, not, Do I or Don’t I. But the best thing about OptionCast© is that it gives you tremendous opportunities to make money in options trading the same way the professionals have been doing for years.
Option Cast© Using Nobel Award Formulas to calculate probability.
Options Trading for the professionals now available to the beginner.
A few years ago on a Monday morning, I checked my brokerage account and to my surprise it showed that I had purchased 1,000 shares of AMD for a total cost of $15,000. The payment for this purchase was taken out of my brokerage money market account.
Why surprised you may ask. I had not put an order for this purchase nor did I really intend to buy AMD. I get to this in a little bit.
Had I wanted to sell the stock on that day, I would have received around $14,500, a loss of $500 in just a few hours. In the end it worked out and I sold that particular stock a few months later for a handsome profit.
But on that day I had a paper loss of $500 and if I did not have enough money to pay for the purchase, the $500 loss would have been the least of my worries.
So, how did I end up with a stock that I did not necessarily want or order?
Automatic exercise threshold for equity options is the reason.
Today, I received the following message from two of my brokerage firms that reminded me of that day.
“Beginning October 2006, the Options Clearing Corporation (OCC) will implement a change to reduce the automatic exercise threshold for equity options. The current threshold of $0. 25 will be set at $0. 05 for expiring options that are automatically exercised by the OCC. The threshold for index options will remain at $0. 01. ”
Who cares about a measly $0. 20? You cannot even buy a stick of gum with that.
For options traders this could mean a huge potential loss, margin calls and a whole lot of trouble.
Let’s go over a few simple reminders about options trading. Options are contracts that allow a person to buy or sell securities, for example stocks, at a predetermined price named option exercise price and on/or before a predetermined date in the future named option expiration date.
Options represent a reserved right but not an obligation. In other words, the holder of this right, that is to say the buyer, can exercise this right or not.
For example if you own a Microsoft January 25 Call Option, it gives you the right to buy Microsoft for $25. 00 on or before third Friday in January. It is obvious that you would not exercise your option if Microsoft is at $20. 00. In that case, if you really like Microsoft, you just go to open market and buy it for $20. 00.
However, if Microsoft soars to $40, then you want to exercise your right (option) and buy the stock at $25 and turn around and sell it at $40 or keep it for further potential increase.
To exercise your options you need enough money to pay for buying the stock. Each option contract represents 100 shares of stocks, so 10 contracts represent 1000 shares of stocks. In our Microsoft example, for you to exercise 10 options contracts at the price of $25. 00 requires $25,000 to be in your account.
If you don’t have that money, well, you may face margin calls and any other not so pleasant consequence. This is where the new change can cause any serious damage.
Options are a right and not an obligation except that you have to deal with automatic exercise threshold. This is the threshold the Options Clearing Corporation (OCC) uses to determine if they should exercise your right on your behalf.
In the letter I received from my brokerage firm, they informed me that if the price of the stock is only a nickel ($. 05) above the exercise price, that would mean they will automatically buy the stock for me according to this new rule.
So what can options traders do not to deal with unwanted stocks?
First, they can and should watch the stock price and be proactive in the process especially on the option expiration date. Option trading is not by any stretch of imagination a passive approach. They can also call their brokerage firm and find out what other alternatives are available to them.
Seasoned options traders know what they should do and the aim of this article is to bring any facts to the attention of those who are just getting started.
In investing and in life I remember what Robert Grant said, “Men and women everywhere must exercise deliberate selection to live wisely. ”
* DISCLAIMER: Vishy Dadsetan, http:/www. MyPersonalFinance. com or My Favorite Shop, Inc. do not endorse any product or company. This article does not provide investment, legal, insurance, or other professional services. If investment or other expert assistance is required, the services of a competent professional should be sought. Although Vishy Dadsetan has made every effort to ensure the accuracy and completeness of the information contained in this site, it assumes no responsibility for errors, omissions, inaccuracies, or inconsistencies.