2017-07-07 and 2017-07-09 Meetup Slides
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This document provides information about an upcoming event hosted by Vancouver Disciplined Trading Hub (VDTH). It introduces the presenters and their backgrounds. The presentation will cover topics like what disciplined trading is, inspiration from other traders, non-directional and directional trades, and content for the week. It emphasizes the importance of predefining risk, cutting losses, and using a systematic money management plan in disciplined trading. The disclaimer notes that VDTH is not providing individual recommendations or advice.
![Non-Directional Trade Characteristics
RANGE-BOUND [within 95% c.i.]
INDEX-LINKED [SPX]
25-DAY TIMEFRAME
GUARANTEED TIME DECAY
OPTION WRITING [selling]
AVERAGE RETURN ~ 8% / 3 weeks
What
does this
mean?](https://image.slidesharecdn.com/2017-07-07uploadedversion-170708002941/85/2017-07-07-and-2017-07-09-Meetup-Slides-13-320.jpg)
2017-07-07 and 2017-07-09 Meetup Slides
- 1. Who are We? 6:00 PM EVERY SUNDAY Cedar Cottage Pub 1303 Kingsway, Vancouver, BC www.meetup.com/vdthub
- 2. Who are We? 6:00 PM EVERY FRIDAY SFU SURREY www.meetup.com/vdthub
- 4. This is a presentation prepared for Education purposes only. Neither Vancouver Disciplined Trading Hub (VDTH), Round Table Educators (RTE) or Prosperis Passive Income Strategies (PPIS) nor any of its personnel are registered broker-dealers or investment advisors. We may mention that we consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. This does not mean that we are telling you to trade these exact strategies or securities. Keep in mind that we are not providing you with any specific recommendations or personalized advice about your own trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security, or a suggestion that it is suitable for any specific person. Trading ALWAYS involves a risk of loss, even if we are discussing strategies that are intended to limit risk. VDTH, RTE and PPIS are not subject to trading restrictions. We could have a position in a security or initiate a position in a security we mention at any time. Disclaimer
- 5. Agenda • Who are we? • What is Disciplined Trading? • Our Inspiration • Non-Directional Trades • Directional Trades • Content for the week • Round Table Practice Trades
- 6. Who are We? Karim Adatia, CPA Maki Yanagi, LLQP <Financial Educator> <Geek> <Full-time Stock Options Trader> <LLQP Financial Advisor> <Professional Referrer> <RT Educators>
- 7. What is Disciplined Trading? “The typical trader DOESN’T predefine their risk, cut their losses, or systematically take profits because the typical trader doesn’t believe it’s necessary. The only reason why he would believe it isn’t necessary is that he believes he already KNOWS what’s going to happen next, based on what HE PERCEIVES is happening in any given moment.” - Mark Douglas But a Disciplined Trader will … 1) Predefine their risk before taking a trade 2) Cut their losses without hesitation 3) Use a systematic money management plan What Most Traders Do…
- 8. Agenda • Our Inspiration • Content for the week
- 10. Content Disclaimer Content Availability to VDTH Meetup Members 1) Reference To Source 2) By Donation In the Content Portion of this Meetup we may play copyrighted material; the use of which has not been specifically authorized by the copyright owner. We are making such material available for the purposes of criticism, comment and review which constitutes the "fair use" of any such copyrighted material as provided for in Section 107 of the US Copyright Law. Not withstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work for purposes such as criticism, comment or review is not infringement of copyright.
- 11. NON- DIRECTIONAL TRADES Stocks and Equity Options 3-month Program US$799 DIRECTIONAL TRADES FOR VIDEO ABOUT MMT PROGRAM: www.youtube.com/watch?v=hzhJBdGNwyo $200 off for VDTH Meetup Members FB PAGE: www.facebook.com/MasterMindTraders.official/ www.mastermindtraders.com/freevideos
- 13. Non-Directional Trade Characteristics RANGE-BOUND [within 95% c.i.] INDEX-LINKED [SPX] 25-DAY TIMEFRAME GUARANTEED TIME DECAY OPTION WRITING [selling] AVERAGE RETURN ~ 8% / 3 weeks What does this mean?
- 14. The Iron Condor Options Strategy 2325 2425 2525
- 15. SPX (S&P 500) SHORT CALL: = 2525 2425 25252325 95% TRADING RANGE: 2325 – 2525 SHORT PUT: = 2325 LONG PUT as protection 5 points away LONG CALL as protection 5 points away 25302320
- 16. Practice Trade WEEK OF: JAN 2 - 6 2017 STEP 1: INFORMATION -105.00 -100.00 (SPX VALUE) +100.00 +105.00 Long Put Short Put Short Call Long Call STEP 2: TRADE Watch Video: STEP 3: MANAGEMENT Watch Video: CALL ALERT: SPX Value + 65= PUT ALERT: SPX Value - 65= YOUR PRACTICE TRADE
- 17. Determining Expectancy Steps for calculation expectancy: 1. Calculate your win and loss ratio 2. Calculate your reward to risk ratio 3. Combine those two ratios into an expectancy ratio SPX Trade Expectancy 1. Win and loss ratio: 27 trades. 27 wins. Win ratio = 100%, Loss ratio = 0% 2. Reward to risk ratio: Winner size (Avg) = $350. Loser size (Avg) = N/A. Risk-Reward Ratio = ∞ 3. Expectancy ratio: (Reward to Risk ratio x Win ratio) – Loss ratio = (∞ x 100% ) - 0% = + ∞
- 18. How much does the SPX Change on a Daily Basis? www.investing.com/indices/us-spx-500-historical-data
- 19. How much does the SPX Change on a Daily Basis? www.investing.com/indices/us-spx-500-historical-data
- 20. How much does the SPX Change on a Daily Basis? www.investing.com/indices/us-spx-500-historical-data
- 21. Apply with caution Disciplined Traders … 1) Predefine their risk before taking a trade 2) Cut their losses without hesitation 3) Use a systematic money management plan This Strategy… 1) Predefines your risk 2) Has positive expectancy 3) Can be systematic / automatic
- 22. Full Workshop Wednesday July 19th – 6 PM SFU Harbour Centre (Downtown) Register at : www.ppis.yapsody.com Workshop (2.5 hours) + Workbook + 1-1 Coaching (1 hour) Methodology Adjustment Rules Risk management …
- 24. This Week’s Content Videos available by contact: karim@ppis.ca
- 26. Backup Slides
- 27. The Guarantee with Options – Time will Decay $$$ RETURN TO CHARACTERISTICS OF NON-DIRECTIONAL TRADES SELL BUY BACK
- 28. What are Equity Options? An option is a contract that to buy or sell a certain amount of stock. allows you For this program, we will trade options on a stock index called the S&P 500 which has the symbol SPX. RIGHT or OBLIGATION
- 29. Why do options exist? Leverage. An option contract represents 100 shares of the underlying stock but costs a lot less! Bullish Stock Trader Apple Inc. (AAPL) costs $100.00/share 100 shares would cost = $10,000. Apple Inc. share goes to $105.00/share Stock Trader makes $500 or 5% profit. Bullish Options Trader Apple Inc. (AAPL) costs $100.00/share 1 contract costs $5.00, so trader pays $500. Apple Inc. share goes to $105.00/share The Option contract goes to $6.80. Options Trader makes $180 or 36% profit.
- 30. SELLBUY CALL PUT THE RIGHT TO: THE RIGHT TO: THE OBLIGATION TO: THE OBLIGATION TO: Buy Stock Sell Stock Sell Stock Buy Stock CALL BECAUSE WE ARE DOING ALL FOUR. WE ARE NON-DIRECTIONAL
- 31. What are Options? An option is a contract that to buy or sell a certain amount of stock. allows you For this program, we will trade options on a stock index called the S&P 500 which has the symbol SPX. RIGHT or OBLIGATION
- 32. Why do Options exist? Why should we trade them? Leverage. 1 option contract controls 100 shares. Bullish Stock Trader Apple Inc. (AAPL) costs $100.00/share 100 shares would cost = $10,000. Apple Inc. share goes to $105.00/share Stock Trader makes $500 or 5% profit. Bullish Options Trader Apple Inc. (AAPL) costs $100.00/share 1 contract costs $5.00, so trader pays $500. Apple Inc. share goes to $105.00/share The Option contract goes to $6.80. Options Trader makes $180 or 36% profit.