Home Up Contents                          Synopsis Continued.                                                                                                                                                                                                                                                                                                                                                                                                                                       

 

                    

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The second half of the Course synopsis.

 

The R.H. Home Study Options Trading Course.

Chapter . 4)   Traded Options.

                    The history and development of Traditional Options , Traded Options and terminology, Contracts, Expiry dates, Premiums and. the Operation of the FTSE100. What is meant by Intrinsic and Time value, In and Out of the Money and Gearing and finally How to instruct your Broker. It also covers how and why you trade ‘Puts’ differently to ‘Call’ Options.  Part of the work you must put in is gaining a thorough working knowledge of the subject in which you intend to trade. Become totally familiar with the mechanics of Options before you move on.

  Chapter. 5)   ‘CATS’ The Chart Analysis Trending System.                                
 Included with the course is a restricted version of the original software program together with actual data which you can load onto your computer so that you may follow all the worked examples which are given to illustrate how the System is used. It also goes logically  through the sequence of steps you need to make when ‘Buying’ options once a signal is generated and covers which Option to trade; the Strike Price, how far in or out of the money and the Expiry date; also of course when to close your trades. It should be noted that this program is provided to assist you in learning how to Trade Options but it cannot be used for live current day Trading ;for this our clients purchase the ‘RH Ftse100 Option Suite’  which runs in the Omega Research ‘Supercharts’ technical analysis platform ,which in turn runs under Windows ’95. This very latest set of programs is very easy to load and use, provides a lot more detail as well as the added ability to fine tune your trades. The signals are applied in exactly the same manner.

Chapter. 6)    Writing Options.                                                                                    
For every Options contract traded, as in any contract, there are two sides; each has an opposite view. One party believes the market will rise and so ‘Buys’ a ‘Call’ option, the other party to the contract believes it will go down and therefore ‘Sells’ a ‘Call’ option, this is also known as ‘Writing’ an option. We  use the same ‘CATS’ software programs to show how this is done. As in the previous chapter a step by step guide is given with worked examples. “Who can Write Options”, “Why should writers make more money than buyers” “ What does the writer do” These and many other questions are also covered together with downside protection and ‘Hedging’ techniques, margins, money management rules ,unlimited liability and the risk that may be incurred.

Chapter. 7)        Learning how to execute a Trading System.

                       Three of the stages required to make you a successful trader:-

                              Perception ------- or your ability to perceive opportunity.

                              Execution --------or your ability to execute a trade.    

                              Accumulation ---or your ability to allow your account balance to grow

                                                  over a period of time or a series of trades.

                            Learn to institute a completely disciplined approach to trading and how to release yourself from the negative emotional energy stored in memories of any past trading experience.

                       This chapter concludes with  Twelve clearly defined trading rules to assist you in executing a trade correctly.

 

Chapter. 8)          Spot Currency.

                       We have included an introduction to Foreign Exchange which may be traded either in the Spot Market or by using Options. We also provide programs for the Four main currencies against the US Dollar and this chapter gives you a wider view of how options are used in different markets.

Chapter. 9)      Computer Driven Trading Systems.

                       “You cannot have discipline without a proven system and you cannot trade a proven system without discipline.” 
This chapter looks at the way in which computerised trading systems help you become more disciplined and therefore more profitable; but the computer will not on its own make you a better trader-only money management and adherence to a disciplined strategy will do that. The ‘One to One’ short term program which is part of the ‘Omega’ based Suite for ‘Buying’ options  is used as the basis for analysing the accuracy of such systems; which in turn builds your confidence in that system.

                              When clients purchase this suite of programs we supply additional information to illustrate how to use other secondary indicators to fine tune trades and to trade a number of times on the same signal. You will notice that as the market rises it rests for a while or falls back before moving up again, during this time it is likely that the same SOS signal is in place but if you stay in the market you are likely to loose some of your profit during these corrections due to ‘Time Decay’ and so it is better to close out and then get back in again as the cycle turns back up.                        

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