Description

Video Collection on http://www.randomwalktrading.com

please see screenshort for content

 

Content:

  • Definition

 

A three-leg box is simply a four-leg box amputee. One of the pieces of a traditional box has not been traded for a variety of possible reasons. Not selling one of the options (that should traditionally be sold) to increase potential profit, or not buying a leg that should be bought to increase possible profit while incurring more risk are the two primary reasons to be in a three-leg box.

 

  • Definition

 

The box is the primary building block of option arbitrage. Under most circumstances, the box represents a set of relationships that forever tie together the love triangle between calls, puts and stocks.

 

  • Sets of Relationships

 

Long Call + Short Put = Long Synthetic Stock – Buying a call and selling a put of the same strike and expiration month leaves a trader with a position that, in most respects, mimics a long stock position at the strike in question and for the amount of time remaining until expiration.

Short Call + Long Put = Short Synthetic Stock – Selling a call and buying a put of the same strike and expiration month leaves a trader with a position that, in most respects, mimics a short stock position at the strike in question and for the amount of time remaining until expiration.

  • The Option Greeks

http://www.randomwalktrading.com/online-store/option-greeks-for-profit-book/

 

This manual dissects and demystifies the most confusing of all option concepts – the Greeks (Delta, Gamma, Theta, Vega, and Rho). This is an advanced text for those wishing to push the limits in their option education. Through it is designed for ease of understanding by the layperson, even the most seasoned professional floor traders will likely learn something from this powerhouse of knowledge. How often have you wished for this knowledge when every trade seems to go against you?

The materials presented are not just cold theories, but takes those theories and turns the practicalities of the Greeks into strategies one can use to profit from the markets. Learn how professional traders can buy or sell straddles and strangles while using time-decay to their advantage, even when forced to pay out the time decay. This is the analytical trader’s quantitative manual to trading; yet, it is presented so that anyone without an advanced math background can understand. No trading library is complete without this text. What would it be worth emotionally and financially to have a panic button at your disposal? Many people have paid over $20,000 for specialized options training without learning the lessons presented here.

 

 

About

Random Walk Trading is a Premier Options Trading Education Company which was created for the student who wishes to transform his passion into a career. As such we wish to work only with those who are serious about their education.