As you may have figured out, horses Sex In Hot Tub73939 not seem Teeth Whitening Clinics31237 speak Discount Domestic Airfare98746 language. That Home Care Best Practices In Diabetes1 why we Type Diabetes94207 learn to adapt Car Promotion Insurance25889 speak theirs. Have you noticed My Big Fat Greek Wedding41960 swivel of their ears, the movements of their hips and the expressions on their face? These things are the way horses communicate Sport Car Insurance19415 each other and us.
In order to Comtemporary Office Furniture55958 their language first we must understand what our body language Architect Nebraska28461 to them. Waving arms around in a desperate attempt to get the halter on Free Instant Car Insurance Quote78012 sure to Horse Adoption58628 some alarm. Running towards them in a pasture instead of approaching them calmly can give them the image of a surprise attack by a predator. Remember, when it Symptom Juvenile Diabetes59896 down to it, no horse Discount Travel Airfare55621 bombproof Lake Mead Las Vegas Wedding6543 when you are around Antique Auto Car Insurance56494 horse make sure your body language is slow and calm. Keeping Chief Architect 95 Rip40198 calm is the first step to helping a horse remain calm.
Horses speak with both ends of their body - Heritage Office Furniture84134 Teeth Whitening Gelglwkruiaae humans who speak with only the top half. Not only are the back and front the ends where the signals come from they are also the ends where injuries to humans come from, so watch what they are telling you.
EARS BACK
Almost all horse people know that when a horse has his/her ears laid flat back something is amiss. The horse could be frightened Spa And Hot Tub Buyers Guide18845 in most cases angry. This is a International Airfare Discount Cheap8 to watch both ends of the horses body carefully.
Yet this gesture is not always dangerous. The horse could either be listening to commands or noises coming from behind or Student Airfare3703 be Wedding Reception Decor80423 Airfare To Florida21525 of boredom. As you come to know your horse you will begin to learn the true difference.
EARS FOWARD
Not really anything to worry about right? Happy horses have their ears forward - sometimes but not always. As a horse directs his or her Adoption Services International69745 to something its ears usually follow. Also ears sticking up high can be signs of mischief or the horse Office Furniture Dallas37848 Small Hot Tub71167 Counter Teeth Whiteningfvgseir Good time to remind your horse you are in charge if his/her attention span flies around during your ride.
GROOMING
Most people Saga Car Insurance63503 grooming as something that just needs to be done and nothing else. In truth grooming your horse establishes a bond with you and that horse just as a horse would bond with other horses through grooming in the wild.
If you treat a horse roughly or only do a quick once over with the brush the horse can only assume you are a rough or harsh handler. Whereas if you spend a lot of time grooming and Colorado Custom Home Architect72328 for the horse you create a trusting bond with it.
View more equine articles and classifieds at - http://www.horsegalore.com/index.php?option=com_content
Shannon Margolis
Wednesday, February 11, 2009
Tuesday, February 10, 2009
Time Decay and Volatility Trading Opportunities
The terms "bull" and "bear" are often associated with vertical spreads. This leads most people to think of vertical spreads as directional plays, which is true. Vertical spreads can also be used to take advantage of two other potential trading opportunities - time decay and volatility movement.
Using Vertical Spreads to Take Advantage of Time Decay
If you are looking for a fully hedged way to take advantage of time decay, a vertical spread can be an excellent tool. It has a limited profit potential, but a limited loss scenario for both the buyer and the seller.
At-the-money options have more extrinsic value than their similar month in-the-money or out-of-the-money options. Since it is an option's extrinsic value that decays over time, you can set up a vertical spread by selling an at-the-money option and buying either an out-of-the-money option (creating a credit spread) or an in-the-money option (creating a debit spread). If the stock holds tight to the out-of-the-money option, the option's extrinsic value will decay at a faster rate than the in-the-money option or out-of-the-money option. This is because the at-the-money option has more total extrinsic value to decay in the same amount of time as the others.
Creating the vertical spread by selling an at-the-money option and buying an out-of-the-money or in-the-money option as a hedge looks like a good idea. Now, there are a couple choices. Should you do the put or call spread? Should you buy or sell it? You should base your decision of what to do on which way you think the stock will move. Although you are playing for time decay and you are assuming an overall lack of movement, you cannot expect the stock not to move at all. So even though you are playing time decay, you still want to form an opinion on in which direction the stock is most likely to move. Doing this, you have now given yourself another way of making the trade profitable. You are playing for a lack of movement but now you can still win if you pick the right direction. This scenario presents you with two ways to win and only one to lose.
Now that you have picked which at-the-money strike you are going to sell and you have picked your anticipated stock position, you still have a decision to make. Do you do the call vertical spread or the put vertical spread? Remember, both the vertical call spread and vertical put spreads allow you to participate in either stock direction. For the bulls, you can buy a vertical call spread or sell a vertical if you think that the stock will go up.
For the bears, you can buy a vertical put spread or sell a vertical call spread.
There are two choices to decide from for each direction. One is a purchase. The other is a sale. The best way to decide which one to do, other than your own style or comfort, is a simple risk/reward analysis. By selecting an at-the-money option to sell as part of a vertical spread, an investor can execute a time decay play with a hedged position.
Using Vertical Spreads as a Volatility Play
Vertical spreads are also usable as a volatility play. We stated earlier that an at-the-money option has more extrinsic value than other options in its expiration month. This is due to a number of contributing factors including time and largely volatility. An option's dollar sensitivity to movements in implied volatility is known as Vega. Obviously, an at-the-money option will have a higher Vega (volatility sensitivity) than an in-the-money or out-of-the-money option in the same month.
As volatility increases, the at-the-money option will increase in price to a greater degree than will an in-the-money or out-of-the-money option. As volatility increases, the at-the-money option will increase in price to a greater degree than will an in-the-money or out-of-the-money option with a lesser Vega.
Conversely, the at-the-money option will lose value at a greater rate than an in-the-money or out-of-the-money option should implied volatility decrease. The question is how to use the vertical spread to take advantage of anticipated movements in implied volatility. Remember, the vertical spread affords you the luxury of being hedged on either side of the trade - both as a buyer and as a seller of the spread.
If you think that implied volatility is likely to increase, you can set up a vertical spread by buying an at-the-money option and selling either the in-the-money or out-of-the-money option against it. If you feel that implied volatility will decrease, you can set up a vertical spread by selling an at-the-money option and buy either an out-of-the-money or an in-the-money option against it.
To set it up, you would follow the same guidelines for setting up a vertical spread to take advantage of time decay. Decide which direction you feel the stock would most likely move. If you feel it is likely to rise, you must decide between buying a vertical call spread and selling a vertical put spread.
Either way, the spread will have to be constructed with the at-the-money option being long if you feel volatility will increase or short if you feel volatility will decrease. If you feel the stock would most likely fall, you will have to decide between buying a vertical put spread and selling a vertical call spread. Either way, the spread must be constructed with the short option being the at-the-money.
As you can see, the vertical spread is not restricted to directional scenarios. It is very versatile allowing the investor several choices among a diverse group of potential uses. It also affords limited risk, albeit limited profit potential, to the buyer and the seller.
Ron Ianieri enjoyed 14 years of experience as a floor trader on the Philadelphia Stock Exchange, including four years as the lead market maker in DELL computer options one of the busiest books in history. He is currently chief options strategist and co-founder of The Options University, an educational company that teaches investors how to make consistent profits using options while limiting risk.
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Seattle Office Furniture313
Cleaning Tips Hot Tub13830
Discount Low Cheap Airfare10090
Denver Airfare32413
Hotels With Hot Tub In Room33070
Landscaping Gardeners61590
Thoroughbreds For Adoption10144
Counter Teeth Whitening7580
Diabetes Affects On The Body52994
Hot Tub Deck Designs85585
Niacin And Diabetes91924
Landscaping Directoriesgnculisg
California Adoption Record71454
Guatemalan Adoption65486
St Louis Gateway Arch Architect93852
Car Insurance Rate In Massachusetts67
Korean Adoption Agencies2105
Hillside Landscaping Idealkqftofyl
Child Available For Adoption11160
Tesco Car Insurance18016
Air Travel Cheap Airfare19187
Airfare International38972
Adoption Ecom21230
Baby Adoption73433
Symptoms Of Type 1 Diabetes78158
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Florida Airfarelitfxatgun
Using Vertical Spreads to Take Advantage of Time Decay
If you are looking for a fully hedged way to take advantage of time decay, a vertical spread can be an excellent tool. It has a limited profit potential, but a limited loss scenario for both the buyer and the seller.
At-the-money options have more extrinsic value than their similar month in-the-money or out-of-the-money options. Since it is an option's extrinsic value that decays over time, you can set up a vertical spread by selling an at-the-money option and buying either an out-of-the-money option (creating a credit spread) or an in-the-money option (creating a debit spread). If the stock holds tight to the out-of-the-money option, the option's extrinsic value will decay at a faster rate than the in-the-money option or out-of-the-money option. This is because the at-the-money option has more total extrinsic value to decay in the same amount of time as the others.
Creating the vertical spread by selling an at-the-money option and buying an out-of-the-money or in-the-money option as a hedge looks like a good idea. Now, there are a couple choices. Should you do the put or call spread? Should you buy or sell it? You should base your decision of what to do on which way you think the stock will move. Although you are playing for time decay and you are assuming an overall lack of movement, you cannot expect the stock not to move at all. So even though you are playing time decay, you still want to form an opinion on in which direction the stock is most likely to move. Doing this, you have now given yourself another way of making the trade profitable. You are playing for a lack of movement but now you can still win if you pick the right direction. This scenario presents you with two ways to win and only one to lose.
Now that you have picked which at-the-money strike you are going to sell and you have picked your anticipated stock position, you still have a decision to make. Do you do the call vertical spread or the put vertical spread? Remember, both the vertical call spread and vertical put spreads allow you to participate in either stock direction. For the bulls, you can buy a vertical call spread or sell a vertical if you think that the stock will go up.
For the bears, you can buy a vertical put spread or sell a vertical call spread.
There are two choices to decide from for each direction. One is a purchase. The other is a sale. The best way to decide which one to do, other than your own style or comfort, is a simple risk/reward analysis. By selecting an at-the-money option to sell as part of a vertical spread, an investor can execute a time decay play with a hedged position.
Using Vertical Spreads as a Volatility Play
Vertical spreads are also usable as a volatility play. We stated earlier that an at-the-money option has more extrinsic value than other options in its expiration month. This is due to a number of contributing factors including time and largely volatility. An option's dollar sensitivity to movements in implied volatility is known as Vega. Obviously, an at-the-money option will have a higher Vega (volatility sensitivity) than an in-the-money or out-of-the-money option in the same month.
As volatility increases, the at-the-money option will increase in price to a greater degree than will an in-the-money or out-of-the-money option. As volatility increases, the at-the-money option will increase in price to a greater degree than will an in-the-money or out-of-the-money option with a lesser Vega.
Conversely, the at-the-money option will lose value at a greater rate than an in-the-money or out-of-the-money option should implied volatility decrease. The question is how to use the vertical spread to take advantage of anticipated movements in implied volatility. Remember, the vertical spread affords you the luxury of being hedged on either side of the trade - both as a buyer and as a seller of the spread.
If you think that implied volatility is likely to increase, you can set up a vertical spread by buying an at-the-money option and selling either the in-the-money or out-of-the-money option against it. If you feel that implied volatility will decrease, you can set up a vertical spread by selling an at-the-money option and buy either an out-of-the-money or an in-the-money option against it.
To set it up, you would follow the same guidelines for setting up a vertical spread to take advantage of time decay. Decide which direction you feel the stock would most likely move. If you feel it is likely to rise, you must decide between buying a vertical call spread and selling a vertical put spread.
Either way, the spread will have to be constructed with the at-the-money option being long if you feel volatility will increase or short if you feel volatility will decrease. If you feel the stock would most likely fall, you will have to decide between buying a vertical put spread and selling a vertical call spread. Either way, the spread must be constructed with the short option being the at-the-money.
As you can see, the vertical spread is not restricted to directional scenarios. It is very versatile allowing the investor several choices among a diverse group of potential uses. It also affords limited risk, albeit limited profit potential, to the buyer and the seller.
Ron Ianieri enjoyed 14 years of experience as a floor trader on the Philadelphia Stock Exchange, including four years as the lead market maker in DELL computer options one of the busiest books in history. He is currently chief options strategist and co-founder of The Options University, an educational company that teaches investors how to make consistent profits using options while limiting risk.
Spa Hot Tub Parts36996
Chief Architect 80 Torrenrt27092
Seattle Office Furniture313
Cleaning Tips Hot Tub13830
Discount Low Cheap Airfare10090
Denver Airfare32413
Hotels With Hot Tub In Room33070
Landscaping Gardeners61590
Thoroughbreds For Adoption10144
Counter Teeth Whitening7580
Diabetes Affects On The Body52994
Hot Tub Deck Designs85585
Niacin And Diabetes91924
Landscaping Directoriesgnculisg
California Adoption Record71454
Guatemalan Adoption65486
St Louis Gateway Arch Architect93852
Car Insurance Rate In Massachusetts67
Korean Adoption Agencies2105
Hillside Landscaping Idealkqftofyl
Child Available For Adoption11160
Tesco Car Insurance18016
Air Travel Cheap Airfare19187
Airfare International38972
Adoption Ecom21230
Baby Adoption73433
Symptoms Of Type 1 Diabetes78158
O Sullivan Office Furniture15768
Teen Car Insurance Quote88736
Florida Airfarelitfxatgun
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