This very powerful course is divided into two independent sections:
1. Advanced Stock Hedging
Stock ownership is risky, yet it can be effectively managed by using a married put and/or collar position. The downside to the put purchase is that an at-the-money put is too expensive to buy, so most traders buy an out-of-the-money put. This leaves a gap between the stock price and the put strike and a possible sinkhole of loss.
By using put spreads and/or butterflies in the correct manner, you can effectively get the same amount of protection as if you had bought a naked put – but at a greatly reduced price. And the best part is that the long butterfly spread can be moved right up to ATM or even ITM, thus offering immediate protection.
This is a MUST have for any serious stock trader.
2. Unbalanced 1-5
By now most people understand the concept and beauty behind playing the SPX index against the OEX index after studying Practical Home Study Course. Because the difference between these two indexes usually falls as the market declines and rises as the market advances, you can create strategically initiated positions which will make money when the stock moves in the anticipated direction, but lose nothing when the market moves in the wrong direction.
Once the 1-5 spread is understood, the position can be “supercharged” by setting up a position where an overabundance of long spreads are purchased without creating a debit scenario. These are ideal positions to have on as either a “cheap” hedge or a directional bet with very safe risk parameters.
If you have ever wanted to learn how the elite OEX traders spread off risk and set up positions to possibly make a great deal of money without the initial debit, then this course is for you.
This is really two books in one, so the value can’t be beat.