2009-08-05

I will be speaking on 23 Aug 2009 at InvestFair 2009 for Optionetics. The chosen topic is about building our edges in finding limited risk options trades. In order to allow us to do this, we have to have the proper knowledge in options trading. What I propose to do is to take the advantage of this session to demystify certain myths that exist in the public domain.

Myth 1 - Are puts and calls the same? Why would someone suggest to track Put/Call Ratio?

Myth 2 - We should be credit spread specialists because we can get paid to initiate such trades

Myth 3 - There is always THE BEST sweet spot (i.e. the BEST delta) for every option trade. Delta 25 is the best. No, Delta 75 is the sweet spot. Who is right and who is wrong?

Myth 4 - When you sell an option whose premium is above $0.25, you won't be assigned. Are you sure?

Myth 5 - Debit spread is easier to understand than credit spread because credit spread has margin to deal with. So, are debit spread and credit spread not the same?

There are many more myths I can find. Let's do my part to demystify at least the above, as there are so many monkeys teaching options in Singapore who know nuts about options. They only know how to sell dreams to the public.

So, interested to listen to me? See you on 23 Aug 2009 at Suntec City Convention Center.

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