Option Trading, Post Fed Tapering
Saturday, December 6, 2014 09:00 MST » 11:00 EST
For the past two years option traders had a fairly conducive market. Even novice option traders had an easier time trading, finding it easier to profit than normal. But when the Fed begins to taper it’s purchases of securities, the market becomes a very different environment and… the game changes!
For nearly two years, the market had an upward bias. The broad market steadily climbed during that period with occasional small pull-backs—which were opportunities to get long the market. During much of that time, over priced options were easy to find in many stocks and the broad market in general. It was a perfect set up for income trades, especially put credit spreads.
The way to make money in options is changing. Over the 21 years Dan Passarelli has been in the options market, he’s seen the market tenor change many times. He’s seen some traders change with the market and thrive, while he’s seen others not able to adapt their trading style fast enough to stay ahead of the changes. In this presentation, Dan will talk about how the market is already showing signs of change and how it is likely to continue changing as the Fed tapers. He’ll also share insights on how option traders can adapt their strategies to new market conditions and stay ahead of the curve.
In this seminar Dan will talk about how to use volatility to set up income trades, and how to avoid volatility traps. He’ll also talk about when to avoid income trading and opt for more volatility-friendly strategies. This presentation is for all option traders.
About Our Speaker
Dan Passarelli is an author, trader and former member of the Chicago Board Options Exchange (CBOE) and CME Group. Dan has written two books on options trading — “Trading Option Greeks” and “The Market Taker’s Edge.” He is also the founder and CEO of Market Taker Mentoring, Inc., a leading options education firm that provides online options education, options newsletters and personalized, one-on-one coaching for option traders. The company website is http://www.markettaker.com.
Dan began his trading career on the floor of the CBOE as an equity options market maker. He also traded agricultural options and futures on the floor of the Chicago Board of Trade (now part of CME Group).
In 2005 Dan joined CBOE’s Options Institute and began teaching both basic and advanced trading concepts to retail traders, brokers, institutional traders, financial planners and advisors, money managers, and market makers. In addition to his work with the CBOE, he has taught options strategies at the Options Industry Council (OIC), the International Securities Exchange (ISE), CME Group, the Philadelphia Stock Exchange, The Shanghai Futures Exchange and many leading options-based brokerage firms.
Dan also contributes to financial media such as TheStreet.com, FOX Business News, Bloomberg Television, BNN, Public Radio (NPR), and the CBOE blog. And he has a weekly featured video on CBOETV.
Dan can be followed on Twitter at twitter.com/Dan_Passarelli.
Amount of historical data varies from 30 days to 14 years depending on the membership you choose.