Update 3/24: Both of our speakers are re-confirmed for Monday evening! Be sure to note the meeting location this month, which is not the same as recent meetings.
For March, we meet at South Regional Library adjacent to RTP, (Cameron Village Library meeting rooms being unavailable).
We will look at the Options "Greeks", via first an Introduction with Brian Johnson, and then with a remote talk by well-known options trader and educator Tony Sizemore on Managing Options Positions.
Using the trading approach he will outline, Tony's account, which he tries live real-time in his mentoring course, had average gains of 63% a year in recent years, and is currently up 15% this year just in the first few months alone - see http://www.optionelements.com/0/P8E/ (with these figures based conservatively on account size, not, as some do, on margin)!
"The Greeks" are variables (called delta, theta, etc.) that you can use to understand the risks and profits of your trades. They are displayed on the options trading screens of every broker, and you may have a rough idea already of what a couple of them mean (for example, delta indicating probability of an option having value at expiry, and theta indicating how much an option will gain or lose every day with the passage of time).
Brian will introduce them visually - no expertise in mathematics needed!
Then, to show their use in managing your options trading, we will project Tony's talk. We will have a mic. in our meeting room for the two way dialogue with Tony (who is in Alpharetta Georgia).
What do we mean by managing your options trades? Let's say you have on trades using a couple of strategies - say an iron condor in one month and a bull put spread in another. How can you estimate how much your account will move overall on a big up move in the stock? When should you roll a position up or down? Could you combine the two positions? When should you take off a leg? When should you take profits or take a loss? How do you make changes with minimum commission costs? It turns out that doing a little adding and subtracting with these parameters - the "Greeks" displayed on your broker's screen - provides the best framework to deal with these questions.
Tony will talk about how he does this, and then go over some recent actual trades in options on stocks and futures.
Tony is an expert in systematically managing trades by getting the risk and reward parameters where they need to be and keeping them within guidelines as the trade evolves. Unlike many educators, he is a full-time hands on trader actively trading both Index and Futures options spreads every day for his own account and others' accounts.
His web site is http://www.optionelements.com/ . Tony's mentoring course is delivered via live-trading webinars during market hours several days a week, so subscribers can track his account against theirs as they make similar trades in their own accounts.
For a useful Stocks and Commodities magazine interview with Tony, see http://www.optionelements.com/interview-with-principal-trader-tony-sizemore/31685/
Brian Johnson, our Introductory Tutorial speaker, is one of our members who has taught the derivatives course at Elon and UNCG. A former institutional investment advisor, who has managed over $13 billion in assets, he is now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies. His web site is http://traderedge.net/.
Following Brian's Intro. at 6:30, Tony will talk for about an hour, starting around 7:15, and then take about 30 minutes of interactive questions. Anything is fair game for the questions, including current trades you may have on!
We really recommend that everyone who possibly can attend this talk, as it is the next step in moving forward in our coverage of options trading. You need to know a little about using the greeks to benefit from later talks.
The meeting is free and open to all. Please feel free to forward or bring friends. Non-members can attend without RSVP's if they do not wish to join. We have plenty of capacity - room for 100 at this location!
6:30 pm Visual / Intuitive Introduction to Options Greeks by Brian Johnson
7:15 pm Talk by Tony Sizemore - Managing Positions by the Greeks
8:15 pm Tony can stay with us for a while to answer questions
8:45 pm Planned end of meeting
9:10 pm We are organizing an informal get-together after the Library closes at
(subject to final confirmation)
Ted's Montana Grill, 6911 Fayetteville Rd, Suite 102, Durham, NC 27713
Please join us! Brian Johnson should be able to join us for a while so this could be a chance to chat with him further about Options topics that came up in the meeting. Although their official closing is 10 pm, we have cleared with them to stay until 11 pm.