Becoming an Option Wizard
5. Option Wizard knows how expiration affects probabilities and creates sale opportunities.
Option Wizard sees these opportunities increase as expiration draws near, from typical 50-50 to 75-25.
6. Option Wizard knows how to analyze special options opportunities, e.g. price repair. Facing a loss, Option Wizard knows: dont get mad, get even for almost $0.
For a stock that can rally, and your forecast is higher prices:
- Buy one near call (e.g., at 20)
- Sell two out-of-the money calls (25)
- Near $0 outlay
- If you reach second strike, you will be even, but further upside is capped.
CHICAGO -- Option Wizard is a registered trademark of Sarkett & Associates, Inc. -- 111[an error occurred while processing this directive]