Introduction to Options Trading Virtual Workshop Recording

Introduction to Options Trading Virtual Workshop hosted by Derek Panaia and Raymond Merriman 

Hosted on December 10, 2023, 12PM EST

This 3-hour workshop will address how to use Options. Derek will cover:

1. Introduction to Options
2. When to use Options
3. Delta, Theta, and other Greek letters to help determine good value
4. Bull and Bear spreads
5. Examples of using Options in Markets
6. Examples of Markets that may be now setting up

All who sign up will receive access to the live workshop and the video recording.

 

Long options (calls and puts) and many types of option spreads are a way to trade anticipated big moves in commodity futures with limited risks associated with outright futures contracts. They can also be used to trade equities that have options connected with them.

An example of how MMA used options and spreads to take a limited risk was suggested in our recent October 4 special update on Gold. In that report, traders were advised to “… consider using outright call options, or bullish call spreads (say, buy November 1900 calls, sell 1950 calls). The cost of such a spread might be somewhere around $700-800 per option spread. You can lose all of your investment here, but not more, which would be the case with outright futures. But you stand to make a max of $5000 per spread if Gold rises above 1950. That’s not a bad risk/reward. If Gold goes above $2000, a 1925-1975 spread can be purchased for less than $500. A 10:1 risk/reward is always attractive if you think there will be a huge move in a market. That is possible if the Mars-in-Scorpio move unfolds as it has in about 75% of past cases.”

Gold bottomed two days later at 1823.50. Those spreads could have been purchased for less than $3.00. Gold exploded over the next two weeks and those spreads were up close to 10 times their cost at the time. Traders need to understand that you can lose your entire investment in options if the market does not move fast and sharp. But if a market does explode sharply and quickly as Gold did via MMA’s strategy presented the evening of October 4, remarkable profits are also possible.

It bears noting that veteran options trader Derek Panaia made a presentation to MMTA students the weekend before (September 30) in which he pointed out this possibility via the use of option trading strategies. The students loved it and wanted to know more. And so, MMA is inviting Derek to give our readers a basic class on trading options and option spreads using MMA’s market timing tools.

With Jupiter coming to conjoin Uranus in April 2024, we think there will be another remarkable opportunity to speculate on certain financial markets using the limited risk of options. Please note that in order to participate in this fascinating workshop, you will be required to sign a disclosure that you clearly understand and accept the risks involved in options trading. The risks that Derek will describe will be limited to one’s cost and not more (as would be the case with outright futures), but that can still be sizeable if one does not utilize proper money management principles.

Please Note: Attendees should have basic understanding of options before taking this workshop. By signing up for this workshop, you agree that you understand that options are considered high risk trading vehicles. You also agree that any options trades that you make are at your own risk and you assume complete responsibility for your results.