FREE webinar Tomorrow - Income strategies in this volatile market

Dan Sheridan invites you to attend a FREE webinar TOMORROW at 3:00 PM Central (Chicago) Time:

Income Strategies in this Volatile Market

https://sheridan500.webex.com/sheridan500/onstage/g.php?t=a&d=662030214

Friday, October 28, 2011 3:00 pm Central Daylight Time (Chicago, GMT-05:00)

Event number: 662 030 214

If the link above does not work, you can manually join this class by following these instructions:
1. Visit http://sheridan500.webex.com/
2. Find the meeting "Income Strategies in this Volatile Market"
3. Click the "Join" button
4. Fill in your name, email address
5. Submit the form
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We hope you can attend this event.

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

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FREE Webinar on Friday: Income Strategies in this Volatile Market

Dan Sheridan invites you to attend a FREE webinar on Friday, Oct 28th at 3:00 PM Central:

Income Option Strategies in this Volatile Market

Register for this FREE event at

http://www.sheridanmentoring.com/index/method/c.eventSignup.html

We hope you can join us for this FREE webinar!

Regards,

Sheridan Options Mentoring

www.sheridanmentoring.com

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
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Dan's CBOE WebCast on Credit Spreads starts soon: 3:30 Central - Join Link

Barb at CBOE said they are having some problems with their website.  Dan Sheridan will be starting the webcast at 3:30pm CENTRAL.

Dan is talking about Credit Spreads and will show 8 different adjustments when a Credit Spread moves against you.  To view the webcast this afternoon, please click or copy and paste the link below. 

http://accordent.powerstream.net/008/00124/presentations/DS20111025

You can download the PowerPoint slides from this link:

http://www.sheridanmentoring.com/x/Y7B

We hope you can attend this CBOE WebCast!

 

Regards,

Sheridan Options Mentoring

www.sheridanmentoring.com

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

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Sheridan Options Mentoring Blog

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Option Foundations Class – Week 1 Continued – Video Posted: 22 Oct 2011 08:29 AM PDT Dan and Jay Bailey taught “Option Foundations” class on Friday.  This was a continuation of the first class.  Dan and Jay spent about 1-1/2 hours teaching this class. Dan put a live SPY vertical spread on and Jay went over more option fundamentals. Watch the class The class will resume on Monday at Noon Central Time! Sign up now to join us on Monday!

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Option Foundations Class from Friday - Video is ready for you...

The video from Friday's Option Foundations Class is ready for you to watch.  Please visit

http://www.sheridanmentoring.com/x/CID8B

The next class is on Monday, Oct 24th at Noon Central for students who sign up for the class.  

Because you need to make a decision this weekend about the class, we have a 

$50 discount this weekend only:

http://www.sheridanmentoring.com/x/SM50

Please call or write Dan at 630-835-4691 or dan@sheridanmentoring.com if you have any questions about the class.

We hope you enjoy the video and that we see you in class on Monday at Noon Central!

Regards,

Sheridan Options Mentoring

www.sheridanmentoring.com

800-288-9341

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

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Sheridan Options Mentoring Blog

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The Volatility Wind Posted: 21 Oct 2011 09:48 AM PDT All bicycle riders recognize the advantage of having the wind at your back. If you can arrange your route to take advantage of this boost, it makes life infinitely easier than wrestling the breeze in your face for the journey. In the world of options, the headwinds can come as the result of three factors-implied volatility, time to expiration, and price of the underlying instrument. The probability of a successful trade is dramatically improved if the trader can put one or more of these factors at his back. For today's blog I thought that I would discuss some concepts to keep in mind when considering trade structures. There is no sense in needlessly fighting a headwind. The effect of implied volatility is the most frequently overlooked factor when traders consider structuring a trade. Remember from our recent anatomy lesson that this factor impacts the extrinsic (time) component of option premium. In the case of out-of-the-money options, this extrinsic component represents the entirety of the premium. One of the important physiologic traits of implied volatility is that it rises in times of perceived future price uncertainty and almost always returns to its historic mean once the perception of an impending potential major price movement has resolved. It is this ebb and flow of volatility that can provide a headwind or tailwind. As an example, consider the weekly options of AMZN expiring next Friday following release of earnings on Tuesday. These options have a dramatically elevated implied volatility reflective of the potential realized price volatility that will follow earnings release. Specific trade structures can be selected to respond negatively, positively, or not at all to the decrease in implied volatility that will inevitably follow the earnings release. In "optionspeak", these represent the categories of vega positive, vega negative, and vega neutral option positions. The "wind in your face" trade would be, for example, for the bullish trader to buy the weekly out-of-the-money $235 strike with AMZN currently trading at $233.23. This option can be bought for $9.50 or so as I type; it consists entirely of time (extrinsic) premium at an implied volatility of 70.1%.

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FREE Option Foundations Class is TOMORROW at Noon Central

You are invited to attend the next Option Foundations Class TOMORROW at Noon Central (Chicago) Time.

These are the details for joining the live class:
------------------------------------------------

Option Foundations Class

https://sheridan500.webex.com/sheridan500/onstage/g.php?t=a&d=664152284

Friday, October 21, 2011 12:00 pm Central Daylight Time (Chicago, GMT-05:00)

Event number: 664 152 284

Teleconference:
+1-877-668-4493 or +1-408-600-3600
Access code: 664 152 284

If the link above does not work, you can manually join this class by following these instructions:
1. Visit https://sheridan500.webex.com/
2. Find the meeting "Option Foundations Class"
3. Click the "Join" button
4. Fill in your name, email address
5. Submit the form
------------------------------------------------

We hope to see you in the class!.

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com

---

Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Sheridan Options Mentoring Blog

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QUIZ ANSWERS to Do you know your Greeks? Posted: 18 Oct 2011 08:12 AM PDT Last week I gave a very high pressure quiz (just joking) on the very important Greek, DELTA. This Greek is crucial in managing price risk. Today we will go over the Quiz. Delta refers to PRICE RISK. Delta and gamma are the two Greeks that deal with the price risk of options. When you buy a call option, the delta decreases as the stock price goes up? FALSE. When you buy a call option , the delta increases as the stock goes up. That's because the call becomes more valuable as the stock increases. The delta of a January at-the-money call is higher than a November at-the-money call? TRUE. Because there is more time left there is greater potential for movement and therefore a bigger delta. You buy the November 175-180 call debit spread for $3.00. The delta of the 175's is 63 and the delta for the 180's is 53. Approximately, what will be the price of the spread if the stock goes up $1.00? You just add the delta difference between the strikes to the price of the spread. Delta difference is 10 PLUS the $3.00 price of the spread = $3.10 Does an increase in implied volatility affect a 50 delta or 75 delta option more? 50 delta is the answer. The at-the money 50 delta has more time premium or extrinsic value than a 75 delta option. Volatility changes affect the time premium or extrinsic value of an option, not the intrinsic value. Therefore, any volatility change will affect the at-the-money 50 delta more than the 75 delta in-the-money option because it has more time premium or extrinsic value. What is the delta of 100 shares of stock? 100. If you own 100 shares of XYZ stock and it goes up $1.00 , you make $100. If you own an option at $10.00 with a delta of 100, if the underlying stock increases $1.00, the option price will also go up $1.00 to $11.00. What Greek determines how deltas will change over time?Gamma. If XYZ stock is at 120 , I buy 1 November 120 call for $4.00. This at-the-money option has a delta of 53. The gamma is 4. What does this mean? If XYZ goes from 120 to 121 , the delta of the call will go from 53 to 57, the delta plus the gamma. Do at-the-money deltas increase or decrease as you get closer to expiration? How about out-of-the-money options? Delta describes the probability an option will finish in-the-money at expiration. If the stock is at 120 and I buy the November 124 out-of-the money calls with a delta of 40, the deltas will decrease over time because there is less probability the November 124's will be in the money. With the stock at 120, if I buy the November 120 at-the-money calls, the deltas will actually increase a bit as we are around 120 because at expiration, if stock is above 120 the deltas will be 100 ( stock), and below 100 the deltas will be zero (worthless). Will the deltas of an at-the-money call calendar increase or decrease as you get closer to expiration? As a calendar gets closer to expiration, the position deltas will get shorter as your short option goes in the money and the position deltas will get longer on a call calendar as your short option goes out-of-the money. Why are the position deltas of an Iron Butterfly always short when you start? Iron butterfly example. XYZ 100. Sell 1 100 call and buy 1 110 call. Sell 1 100 put and buy 1 90 put. The out-of-the-money 90 put will have a higher delta than the out-of –the money calls usually and the at-the-money call deltas will usually be a bit higher than the puts.

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Option Foundations Class - Video is ready for you...

The video for the first Option Foundations Class is ready for you to watch. Please visit:

http://www.sheridanmentoring.com/index/method/c.asset/aid/2498.html

We'll send you login instructions for Friday's class on Thursday.  Class on Friday is at noon Central. 

We hope to see you in the class!.

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Sheridan Options Mentoring Blog

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Option Foundations Class – Week 1 Posted: 18 Oct 2011 07:04 AM PDT Dan and Mark Fenton taught “Option Foundations” class today.  This was the first class.  Dan and Mark spent about 1-1/2 hours teaching this class! Watch the class or download the presentation slides The class will continue on FRIDAY at Noon Central Time and is open to everyone! Join the class on Friday at Noon Central

Options Safari: SPY Calendar and GOOG Calendar Posted: 17 Oct 2011 10:20 AM PDT Dan’s two shows for CBOE TV Options Safari this week are: SPY Calendar Spread to hedge your portfolio GOOG Calendar Spread AFTER earnings  Download the Presentation Slides here Join our free public forums at http://forums.sheridanmentoring.com.

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TIME CHANGE: Option Foundations Class TOMORROW at 11:30 AM Central

The FREE Option Foundations class will be taught at 11:30 AM Central (Chicago) Time tomorrow. We had to change the time due to scheduling conflicts.

These are the details for joining the live class:
------------------------------------------------

Option Foundations Class

https://sheridanmentoring.webex.com/sheridanmentoring/onstage/g.php?t=a&d=924908417

Monday, October 17, 2011 11:30 am Central Daylight Time (Chicago, GMT-05:00)

Event number: 924 908 417

Teleconference:
Call-in toll number (US/Canada)
1-650-429-3300
Access code: 924 908 417

If the link above does not work, you can manually join this class by following these instructions:
1. Visit http://sheridanmentoring.webex.com/
2. Find the meeting "Option Foundations Class"
3. Click the "Join" button
4. Fill in your name, email address
5. Submit the form
------------------------------------------------

We hope you can attend this free class!.

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com

---

Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

FREE Option Foundations Class starts on Monday

We invite you to attend a FREE class on Option Foundations starting on Monday, October 17th at 1:00 PM Central.

You'll learn practical knowledge about the Greeks and foundational concepts you need to know to trade options, including Calendars, Verticals, Iron Condors, Butterflies and more.

This class is for beginner and intermediate option traders.

You can sign up for the class at

==>http://www.sheridanmentoring.com/x/C56A

The first week is FREE on Monday and Friday at 1:00 PM Central.

The remaining 6 weeks will meet on Mondays at 1:00 PM Central.

No Risk to You
The first week's classes are FREE. Come check them out by signing up now at:

==>http://www.sheridanmentoring.com/x/C56A

We hope to see you in the class on Monday!

Regards,

Sheridan Options Mentoring
www.sheridanmentoring.com

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
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Free Seminar with Dan Sheridan and TradeKing next week - Join Us!

Click here to view this e-mail in a browser. Our FREE Live Trading Event is Just Around the Corner Learn to Trade Options for Potential Income in a Volatile Market Are you puzzled about how to tackle this highly volatile market? Live in or around South Florida? If the answer to both is YES, we've got a special treat for you. On October 19 and 20, Options Guy Brian Overby will combine forces with Dan Sheridan of Sheridan Options Mentoring to teach traders useful options strategies for potential income generation in volatile market conditions. If you're struggling to respond to the 'new normal' of choppy markets, this event is just what the doctor ordered. Here's the scoop: WHEN: October 19th, 2011 6 PM to 9 PM Doors open at 5 PM. WHERE: Kovens Conference Center FIU Biscayne Bay Campus 3000 NE 151st Street North Miami, FL 33181 (305) 919-5000 October 20th, 2011 6 PM to 9 PM Doors open at 5 PM. Holiday Inn Ft. Myers Airport @ Town Center 9931 Interstate Commerce Dr. Fort Myers, FL 33913 (239) 561-1550 WHAT WE'LL COVER: Dan will demonstrate how he chooses and manages income-oriented strategies for upside as well as downside profit potential. He will also include a discussion on a little tweaking technique he likes to use known as 'scaling.' Brian will focus on the option 'Greeks' and how important it is to understand which specific Greek is probably driving your position's price. From beginner trader to advanced, this session will have something for everyone. Seats are limited. Register now! Get ready for: A layman's explanation of the Greeks The Fig Leaf options strategy as a way to enhance covered call trading Short spreads for puts and calls - setup, risks and uses Calendar spreads and how to know when it's time to adjust them Management of all positions after the trade is placed Register now for this FREE evening event. We'd love to see you there! Best regards, Chris Lebhar Manager of Interactive Education Options involve risk and are not suitable for all investors. For more information, please review the Characteristics and Risks of Standard Options brochure available at www.tradeking.com/ODD before you begin trading options. Options investors may lose the entire amount of their investment in a relatively short period of time. Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. An investor should understand these and additional risks before trading. The Greeks represent the consensus of the marketplace as to how the option will react to changes in certain variables associated with the pricing of an option contract. There is no guarantee that these forecasts will be correct. Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please consult a tax professional prior to implementing these strategies. Any strategies discussed and examples using actual securities and price data are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation, or solicitation to buy or sell securities. Past performance is not a guarantee of future results. Consider the following when making an investment decision: your financial situation, your risk profile and transaction costs. The material presented by Dan Sheridan is a product of SheridanMentoring.com and as such, is solely responsible for its content. TradeKing maintains a cross marketing relationship with SheridanMentoring.com. © 2011 TradeKing Group, Inc. All rights reserved. Member FINRA and SIPC.

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Mailing address: Sheridan Options Mentoring, 1539 Della Drive, Hoffman Estates, IL 60169 USA

To unsubscribe please visit:
http://www.sheridanmentoring.com/index/method/c.unsubscribe/emailaddr/markrschultze.tset@blogger.com.html

Sheridan Options Mentoring Blog

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Do you know your Greeks? Posted: 08 Oct 2011 07:07 AM PDT Today I am going to give a quiz on the most important Greek, Deltas. Understanding and managing this important Greek is crucial to your options trading. Mid next week I will go over the quiz and go over each answer in detail. Please do this quiz without any books or software if you can. Delta refers to time risk price risk volatility risk When you buy a call option, the delta decreases as the stock price goes up? True or False? The delta of a January at-the –money call is higher than a November at-the-money call? True or False? You buy the November 175-180 call debit spread for $3.00. The delta of the 175's is 63 and the delta for the 180's is 53. Approximately, what will be the price of the spread if the stocks goes up $1.00? Does an increase in implied volatility affect a 50 delta or 75 delta option more? What is the delta of 100 shares of stock? What greek determines how deltas will change over time? Do at-the-money deltas increase or decrease as you get closer to expiration? How about out-of-the money options? Will the deltas of an at-the-money calendar increase or decrease as you get closer to expiation? Why are the position deltas of an Iron Butterfly always short when you start? Good luck!

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