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Wednesday, December 3, 2008

Forex Training Videos from Bill Poulos

Bill Poulos has now released three Forex trading videos in anticipation of launching his Forex Income Engine course. I have seen the course, after pulling some strings with Bill to get an advanced copy of it. Pretty awesome stuff, and if you're thinking about it I wrote up a detailed review.

But that's not the purpose of this post! Three totally free Forex training videos is the reason for this post...

I just figured why make it hard on you to find 'em, so here's all three...




All three training videos are currently available for free viewing and will load automatically, at least until they're pulled off the server. Just take advantage of them while they're available.

Enjoy!

Christopher Smith
TheOptionClub.com

Tuesday, December 2, 2008

Forex Income Engine


You will soon be hearing a lot about Forex Income Engine, which is the latest trading course out from Bill Poulos and Profits Run.

I've known Bill for several years now and consider him a mentor of mine. He was kind enough to share a preview of this latest course with me, so I took some time over the Thanksgiving holiday to sit down and work through the materials.

The course is really well done and the notes I generated from this last weekend have been distilled down into a formal review of the Forex Income Engine course.

Some of you may recall that a little over a year ago, Bill Poulos released another Forex trading course. It was also excellent, but I am sure that the same question that came to my mind is being asked by you...

Why another Forex course?

I have prepared a point-by-point breakdown as to the primary differences between the two trading courses. So, if you're curious to know just What Is The Difference Between Forex Income Engine And Forex Profit Accelerator, a quick reference is now available.

There are a lot of good reasons to be trading in the currency markets. Just make sure you spend the time to learn the ropes and develop a sound trading plan before you do. Either of Bill's courses will get you there and now you have two very different systems to suit your particular need and trading personality.

Christopher Smith
TheOptionClub.com

Friday, November 21, 2008

Think Before He Trades

You gotta love YouTube... Here's one that was posted on our message board and I thought you might enjoy it.



Sunday, November 9, 2008

Radioactive Trading Review Redux

A few moments ago I commented on the Radioactive Trading blog to a post addressing the relationship between a long call and a married put. I am re-posting my commentary below, just to keep the record clean.

Before I do that, I want to re-visit the reasons why TheOptionClub.com came into being. I, and a small group of other people, were studying the subject of options and trying to discover how best to trade them. One problem we encountered was that there were a lot of folks out there selling what they said was the best way to trade. Some of the information was really great. So of it was nonsense.

My friends and I formed a group for the purpose of separating the hype from reality, fact from fiction, and simply drill down to the truth about options and trading. That's what TheOptionClub.com is about...learning about how options really work and how they can be used for legitimate trading and investment purposes.

So, my commentary about married puts, call options, and the Radioactive Trading Blueprint are offered in exactly that spirit. I encourage you to learn as much as you can about trading, investing, how options work, and how you can benefit from their use.

Kurt,

It is interesting that this debate about whether a married put and a call option are synthetic equivalents persists. For what it's worth, it's not just Chris Smith that says so...

"This position [the married put] is also called a synthetic long call, because the profit graph is the same shape as a long call's." McMillan, Options As A Strategic Investment, (4th Ed., 2002, New York Institute of Finance), p. 271.

"Many conservative investors purchase stock and then add a protective put to their position to hedge their risk. What they fail to realize is that this position has the same exact risk/reward profile as a long call but at a significantly higher cost." Jabbour and Budwick, The Option Trader Handbook, (2004 Wiley & Sons), p. 45.

I could quote more, but is it even necessary? The point is that it's not Chris Smith who is saying that the positions are equivalent. It's Myron Scholes. It's Fischer Black. ...to argue otherwise means that you have found the Black-Scholes option pricing formula defective.

Come on...

The point to understand about the risk free rate of return is that a call option allows you to adopt an identical risk/reward position as a married put, but with significantly less capital. The market, and the Black-Scholes formula, recognize this and price the positions accordingly.

Is a call option better than a married put?

No. It provides a risk/reward ratio equivalent to owning a married put.

A call option is more efficient, however. Less capital is required for the trade. You have one commission to get in and one to get out, compared with the married put's two. It's also easier to set up a "stop" for automatic execution.

You argue that married puts are better for those who cannot, or will not, apply risk management. I guess we could go with that, but if someone is that lacking in discipline I doubt that they would do the homework necessary to trade any option position.

My guess is that your successful students are diligent and dedicated. If they were not, they would not be successful. At least not in the long term.

Your position adjustments are not simple. They are quite sophisticated, in fact. Those adjustments move your students into some pretty complex multi-legged positions, which is another reason not to create confusion about what position they're actually holding. It's demanding work and requires discipline. If they can handle that, I'm thinking they can handle position sizing.

By the way, the counter argument to the "automatic position sizing" is that the lower capital requirement of the call option provides the investor / trader the choice of whether to accept a risk free rate of return or seek higher returns. Could that lead to over leveraging? Absolutely. But as you and I have discussed there are also good investment opportunities out there that return better than the risk free rate.

The call's low capital requirements also make your core strategies tradeable in a small account. Why not provide the alternative?

So, what about the guy who buys company stock in his retirement account? Does it make sense for him to trade a married put? Quite possibly... It would also make sense for him to sell a portion of the position as soon as he is able to diversify his holdings.

It just seems to me that the married put is being portrayed as more than it really is. It is a legitimate option strategy with real purpose in today's market. It is not always the best tool for any given job, however.

As I said in my review, I agree that The Blueprint has quite a bit to offer. It's greatest contribution, in my opinion, is the tireless focus upon risk management and trade planning.

Where I think it does a disservice is in its mislabeling of option positions and the portrayal of the married put as the ultimate option strategy. This only leads to later confusion as Radioactive Trading students begin expanding their knowledge. Your indication that this will be resolved in future editions is a positive step towards making The Blueprint more valuable.

I would encourage those same folks who were "burned by the snake oil gurus," as you say, to learn the true facts about options and how to use them responsibly. This may very well mean taking advantage of the benefits that The Blueprint offers, but it would also include expanding their knowledge and understanding so as to fully appreciate how options work.

Christopher Smith
TheOptionClub.com

If you're interested to read my review, it remains available on our website.


I do think that Kurt Frankenberg has done a very nice job of putting together a trading plan for married puts. The reality is that sometimes a married put will make a lot of good sense, but that often you will have better choices available to you. Sometimes that choice will be the purpose of a long call option.

The best lesson Kurt offers is on risk management. We could discuss trade planning as there are many adjustments choices offered

Friday, October 31, 2008

Happy Halloween!

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Saturday, October 25, 2008

OptionVue Credit Spread Training And Video Re-Play

This last week we hosted a webinar exclusive to our community here at TheOptionClub.com. The featured speaker was Steve Lentz, who has been an options educator for the CBOE's Options Institute, the Options Industry Counsel, the Aussie Stock Exchange, and now us...

Steve is currently the Director of Education with OptionVue, as well as a mentor in their affiliated mentoring program. He is extremely knowledgeable when it comes to trading, and he is a superb teacher.

I hope you caught the presentation, but if not you can still view it at:


Steve Lentz tackled the myth about option sellers having an edge in the market.

Is it true? Do option sellers really have an advantage?

Well, watch the video but the short answer is "maybe." It all comes down to an understanding of implied volatility, the option pricing models, and doing a little bit of analysis. Steve showed us the basics of that last week.

He also started talking about credit spreads and the rookie mistakes he has seen so many traders make. We talked about high probability credit spreads and the necessary risk to reward ratios and win rates we need to achieve if we hope to be profitable.

It all came down to "practice, scrimmage, play..." What?

The "practice" part of trading is back-testing, the "scrimmage" is paper trading, and the "play" is money in the market. How many of us have gone to a seminar or learned about some trading idea that got us enthused, then ran home and tried trading it the following week?

I have and so have you. We've all done it. Was it a mistake? Oh, sure it was. So, what's the next step?

At the end of the video, Kevin Ritter from OptionVue outlined an Express Training product that they put tother...just for us.

This last summer Kevin and I worked out a multi-part presentation featuring another of OptionVue's educators. It was awesome. Kevin and I then started talking about their mentoring program. It's an excellent program and well worth the money, but it is expensive...

I wanted to get something that any one of us could afford, because I think that the guy with the $5,000 account should be just as prepared as the guy with the $500,000 account. Kevin agreed and we put together the Express Training product. It's the first time OptionVue has done this and it's just for us.

Now, it's not the full blown mentoring program, but for 30-days we're going to focus on one "bread and butter" trading strategy...the credit spread.

Why the credit spread?

You can trade credit spreads in most market conditions. It's a defined risk trade. It let's us take advantage of theta decay. It gives us an opportunity to create an edge...

...and that's exactly what we're going to learn how to do.

The mentoring program is designed to take us from theory to practical application. We'll learn about credit spreads, but then learn to use a trading system, back-test it, and trade it like a business. We're going to learn how to establish a customized trading plan, how to find appropriate trade candidates, how to open and manage positions, and how to close them.

I'm already signed up.

You're not going to find this high level training anywhere for this price. I know. I've looked. This course is not generally available. It's just for you, me, and the other members.

It includes personal mentoring sessions with Steve Lents. What do you think that would cost if you paid for them ala cart?

Oh, but you need software and data feed, right? It's included. Kevin also agreed to provide access to their on-line educational library.

The only thing I didn't get them to include was the trading account. You'll have to use your own.

This coming Wednesday, October 29, 2008, is the next training session. If you want to join us for the Express Training you must be registered no later than 2:00 p.m. on that day.

The details of the Training package are covered in the video re-play. You can also find the same information and get registered here:


Like I said, I am already signed up and will be part of this mentoring class. The opportunity to refine my personal trading, to become more business-like in managing my trading, is just too valuable to pass up. At $499, you may not have such an opportunity again.

Get yourself registered now and I'll see you next Wednesday for class...

Monday, October 6, 2008

Iron Condor Video Training Now On-line

Good news option traders!

I finally finished up my iron condor video training series. The whole video course is offered free of charge, thanks to the good guys that agreed to sponsor it. The videos cover the basics of the iron condor, gets deep into the greeks, discusses different ways of trading the positions, covers risk management, etc.


Use the link above to click though to the site and if it sounds like something you're interested in just submit your name and e-mail at the bottom of the page. Once you confirm the subscription, you'll get access to the course.

Hey, you could be learning how to trade iron condors right now! Click through...

Christopher Smith
TheOptionClub.com

Monday, September 29, 2008

Bail-Out Plan Goes Down And The Market Follows

An amazing thing happened today...

A group of democrats walked away from their leadership in the House of Representatives and joined arms with a group of Republicans who walked away from their leadership in the White House, and they both agreed to vote down the bail-out plan.

Guess what?

We’re still here. Sure, the market sold off hard today but if you had been paying attention to this blog and studied up on options you likely had a few put options in your back pocket to make the it a bit less harrowing.

As we headed into the weekend, we were told that this bill had to be passed if we were to avoid a total collapse of our financial system. Yes, Wachovia joined the list of failed financial institutions. No sooner than it did, they were bought by J.P. Morgan Chase.

Don’t tell anyone, but I am no financial genius. What I know about the markets is earned from many years of investing, studying, and trading. The sum of my experience tells me that no matter how complex, or “creative”, or sophisticated finances get there are those who owe and those to whom it is owed.

The financial institutions that are failing are victims of their own actions. They loaned money to people they knew, or should have known, could not pay that money back under the terms it had been given to them. It was great fun when housing prices were rocketing skyward, but did they really think the party would never end?

Well, it did and the bill has arrived. So, who shall pay it?

On the one hand you have those who made bad loans, guaranteed bad loans, insured bad loans, and invested in bad loans. You also have those folks who took out loans that they knew, or should have known, they could never re-pay.

On the other side of the equation, you have the rest of the American tax base. The folks who go to work, pay their bills, pay their taxes, and struggle to get some of their income into savings and investments.

Who should pay?

Well, the first group can’t pay because they’re broke. The ones who took the loans they can’t re-pay are defaulting on the loans. The ones made, guaranteed, insured, and invested in the bad loans can’t pay because their portfolio of loans has imploded and the real estate they used to secure the loans is worth a lot less than it was when they wrote the paper. No one wants to loan them any more money, either. Why would they? Look at the mess they’ve already made. How could making more loans to that group make things better?

Oh. But, then there is the Federal government...

Let’s bail ‘em out. Let’s take on the $700 billion dollar mess, pick up these unfortunate “victims” and dust them off. We’ll just add that to the already staggering debt this country already owes. After all, it’s not like our generation will ever be able to pay it off. We’ll stick our kids and grand kids with that. Just like we stuck ‘em with the cost of bailing out Fannie and Freddie. Just like we’ll stick ‘em with a bankrupt Social Security and Medicare system.

Has it ever dawned on you that the Federal government is not very good at fixing financial messes? Has it ever occurred to you that the government is much better at creating financial messes?

I say to hell with the bail out plan...

What? But the world will end. Life as we know it will cease to exist! Or will it...

Will the credit markets dry up? Well, I imagine that those who have money to lend will become a bit more careful about lending it. I’m not sure that’s a bad thing, though.

Will the real estate market disintegrate? I’m pretty real estate will survive. There may be a period of time while foreclosure properties contribute to supply and keep prices depressed, but that’s a market economy and since when did we decide that government intervention in real estate markets is good?

The market is already sorting this mess out. Private equity is funding the purchase of assets at the failed institutions. Those asset purchases are being driven by profit motivations. Someone is going to make money from all of this. Those profits will need to be re-invested. That re-investment creates liquidity.

Oh, but the stock market is selling off and retirement accounts are getting hammered. Yep. But, it wasn’t that long ago that everyone was telling us how great 401k plans are and that we need to save and invest and we’ll all have a great future ahead of us.

The reality is that life is uncertain.

Investing, saving, and just surviving from one day to the next are uncertain endeavors. When crisis arises, we tend to run for shelter and look to the government to make it all better. It’s a peculiar response, because when all is said and done we are the ones who fund the government, along with paying our bills and saving for the future.

With that realization, I am quite comfortable having my representative government pass on this bail out plan. The only reason put forth why this bail out is necessary, or even just a good idea, is the notion that without it all else will come undone and our country will plunge into the abyss.

It’s fear mongering.

The real abyss is the debt this nation owes and the additional debt the bail out plan would create for taxpayers to pay-off. That’s the abyss I fear.

Here’s the bail-out plan I favor. Let’s figure out how to bail-out the tax payer. Let’s come up with a plan that eliminates the staggering debt we currently carry. Let’s agree upon a plan that saves our “golden parachute,” formerly known as “The American Dream.” Let’s bail that out.

I think we’ll survive the fall of Wa-Mu, Wachovia, and even Lehman Bros. The markets will bump and grind along, regardless.

What’s all this mean if you’re a trader?

It’s time to grow up children. It’s time to set aside the childhood fantasy of picking the next big winner. It’s time to learn how to manage risk, create a trading plan, and develop the discipline to trade in difficult market environments.

There is no such thing as security any where in this world. There is only opportunity, and despite the current propaganda our financial markets remain one of the greatest sources of opportunity any where in the world.

If you're inclined to take responsibility for your financial future, now is the time to "step up" to the plate and do something to make your future a bit brighter. McCain and Obama aren't going to do it for us.

My friend and trading mentor, Bill Poulos, is one of the guys that helped me "see the light" when it comes to trading. I've learned a lot of valuable lessons from him. If you're willing to study, work hard, and apply the lessons he teaches there is no reason why you can't enjoy a sense of confidence in your future, too.

Click here to learn more about how to trade in any market...

Friday, September 26, 2008

Washington Mutual And Bail-Out Fail

U.S. stock futures are pointed to a sharp sell-off this morning, after the proposed $700 billion bank bailout package stalled and Washington Mutual was seized by regulators in the country's largest-ever bank failure.

Yesterday, there was optimism that the bank bailout package would be passed. U.S. stocks rose higher, despite General Electric issuing a profit warning and reports that orders for durable goods had dropped. The Dow industrials closed up 197 points, the S&P 500 added 23 points and the Nasdaq Composite rose 30 points.

The bank package began to unravel, however. A White House meeting blew up in acrimony, with House Republicans refusing a demand from Democrats to come back to the table. The Democrats now insist they will not bring the package to a vote unless Republicans support it.

Adding more fuel to the conflagration, federal regulators seized Washington Mutual and sold it to J.P. Morgan. WaMu was the second biggest originator of "Option ARMs," which were marketed to borrowers via low introductory rates and included various payment options. Those loans often included the option to pay only interest, which caused the borrower's debt to grow with each payment, resulting in negative amortization. When housing prices began to fall just at the time rates were adjusting higher on those loans, borrowers began defaulting at alarming rates, leading to enormous losses for WaMu and others who had extended the credit or purchased securities based on that extended credit.

Make no mistake about it. Our nation's credit market is in crisis. Right now the financial markets are clinging to the hope that politicians can set politics aside and put together a sound bail-out plan. With the Democrats and Republicans at each other's throats in advance of the upcoming election, they may very well invest more time blaming each other for the crisis to win votes rather than working with each other for the good of the country.

With crisis comes opportunity, however. There is a great deal of volatility pushing option prices higher. These markets are no place for the amateur, but if you can avoid the whipsaws and sell-offs there is money to be made.

Mind your risk, and trade well.

Christopher Smith
TheOptionClub.com

Saturday, September 20, 2008

A Total Market Melt Down Spurs Government Reaction

If you just returned from a week long vacation on an island, you would be wondering what all the commotion was about.

For the week taken as a whole, the market experienced just a modest rise. Stocks gained less than 1% — the S&P 500 up 0.3% and the Nasdaq 0.6%. But, that doesn't come close to telling the story...

This last week was one of Wall Street’s most remarkable and turbulent weeks in it's history. A week that overturned a financial order built over decades and changed the face of the financial landscape forever.

Lehman Brothers filed for bankruptcy. American International Group agreed to a bailout that ceded control to the Federal Government. Merrill Lynch agreed to be bought by Bank of America. With Morgan Stanley searching for a buyer, that would have left Goldman Sachs as the last big independent broker.

The week shook the foundations of the world financial system.

The London Interbank Offered Rate rose dramatically during the week, pointing to the reluctance of banks to make overnight loans to one another. At one point midweek, the yield on Treasury bills fell to nearly zero as investors raced to the safest of havens. The financial system seemed to be unraveling at the seams.

On Thursday night and Friday, the government took unprecedented steps to avert what some feared would be a complete melt down our financial markets. All of these problems had their root in large portfolios of defaulting mortgages. Those firms that owned those mortgage backed securities could not sell them, because they were being viewed as essentially worthless. These faltering firms did not have the capital necessary to avoid the losses.

Something had to be done to avert unmitigated disaster. Thursday, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke met with congressional leaders. That night they began to craft a plan to buy those illiquid mortgage securities and then auction them off at some later date.

Details were not discussed, probably because no one has really worked them out. Friday's announcement by Mr. Paulson was short and he quickly exited the conference after fielding a minimum of questions. In lieu of details, the plan is being compared to the Resolution Trust Corp., that was formed after the failure of savings and loans associations in the late 1980s.

Money-market funds, a safe haven where institutions and small investors alike park cash, came under unprecedented pressure in their nearly 40-year history. The Treasury Department said Friday morning that it would activate a fund to protect money-market funds.

The Securities and Exchange Commission issued a temporary ban on selling financial stocks short. The ban runs through Oct. 2, but the SEC could, if necessary, extend it another 30 days. The SEC also eased rules to make it easier for companies to buy back their own shares.

The Federal Reserve expanded its emergency lending to allow commercial banks to finance purchases of asset-backed paper from money market funds. It also said it would buy short-term debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

On Tuesday, the Reserve Primary Fund, the original money fund, was forced to write off $785 million in Lehman notes, 1.2% of its portfolio. As a result, its net asset value fell to 97 cents from $1, meaning investors lost 3 cents of every dollar. It froze redemptions after investors pulled out nearly two-thirds of their money during the previous two days.

That was the first time since Orange County, Calif.’s bankruptcy in 1994 that a money-market fund had “broken a buck.” The next day, Reserve announced that two other funds had broken a buck, including a fund exclusively for offshore investors that will return only 91 cents of every dollar invested.

It got worse. Wachovia’s Evergreen Investments, Bank of America’s Columbia funds, Ameriprise Financial, Legg Mason and Frank Russell Funds said they were either shoring up staggering money funds or stood ready to do so to prevent them from breaking a buck.

On Wednesday alone, investors yanked $89.2 billion, or 2.6% of total assets, out of money funds, which the day before held $3.44 trillion. The next day, Putnam announced that it was liquidating a money fund that was under pressure from redemptions.

So, there was a lot on the minds of investors and traders during Friday's session. Add to the fact that this was a quadruple witching trading day, the short covering, and you got the sense that anything could happen.

Whew! What a week, and less than a 1% change to show for it all...

Christopher Smith
TheOptionClub.com

Friday, September 19, 2008

Big Rally On Wall Street On Hopes Of Paulson's RTC

Wow. What a day we had yesterday. Talk about a wide ranging day!

This morning, the futures are up massively. Considering the sell-offs we've had this week, what the heck is going on?

It appears that the world's central banks are injecting liquidity into the markets and the U.S. Government is going to bail out...every body?

The rally was sparked by news reports that Treasury Secretary Henry Paulson might set up a facility to take on bad debts from banks, bringing relief to a sector battered by the financial crisis.

The Paulson facility reportedly would be similar to the Resolution Trust Corp., set up in the late 1980s to take over failed assets during the S&L crisis. It would let ailing banks take bad debt off the books and free up money for loans and other transactions.

Some news reports said Paulson spent part of Thursday pitching the plan to Congress.

Other reports said the plan might not mirror the RTC, or that it was just one of many possible options.

Paulson made no public comment.

Whether such an initiative could make it into law is another matter. Earlier, White House Press Secretary Dana Perino questioned the wisdom of crafting sweeping measures in the midst of the crisis. She added it might be difficult to approve a bill quickly.

Well, Pauslon is scheduled to speak within the hour. This should be a very interesting day on Wall Street.

We have what appears to be a very credible rally, but it also seems to be based on stories of what may happen. It may also be magnified by further restrictions on short selling. Be cautious.

Christopher Smith
TheOptionClub.com

Thursday, September 18, 2008

Washington Mutual And The Big Independent Brokers Endangered

The futures are suggesting we'll see a little relief this morning, but keep in mind that we are going to continue seeing some turbulence in this market.

Washington Mutual has now put itself up for sale, following in the wake of Lehman Brothers, Merrill Lynch, and AIG. The failing thrift has hired Goldman Sachs to help find a buyer, with interested parties potentially including Citigroup, Wells Fargo, J.P. Morgan Chase, and HSBC.

Now, Morgan Stanley and Goldman Sachs Group are the last two remaining big independent brokers but Morgan Stanley is reportedly looking for a merger. You'll remember that Bear Stearns collapsed earlier this year, Lehman Brothers recently filed for bankruptcy, and Merrill Lynch shook hands on a deal to be acquired by Bank of America. With Morgan Stanley looking for a buyer, that would leave Goldman Sachs as the last remaining large independent broker. Can they survive?

I doubt that anyone saw this coming, at least not to this extent. The market's reaction has been turbulent and a lot of people are feeling the pain.

Over the last couple weeks, I've been posting links to materials that demonstrate now only how to survive these types of market, but how to actually prosper and grow your wealth when everyone else is feeling the pain.


These training materials are all available at no cost, but will not be available in definitely. So, I encourage you to take advantage while you can and download the material now.

Christopher Smith
TheOptionClub.com

Wednesday, September 17, 2008

AIG Bail Out, Lehmans Remains, WaMu's Last Days, And You Prospering From It All...

Everyone who can, seems to be making a deal.

Insurance Carrier AIG Rescued By The Fed

Somehow, AIG was able to negotiate a federal bail out on the heels of the government turning it's back on Lehman Brothers. Apparently, AIG is just too big to let fail.

The Fed is extending an $85 billion dollar loan to AIG, but it ain't cheap. The loan is for just two years and carries a rate of 8.5% over LIBOR, plus the U.S. Government takes a 79.9% stake in the company.

AIG's CEO, Robert Willumstad is being shown the door, and will be replaced by former Allstate CEO, Edward Liddy.

Barclays Feeds On Lehman Carrion

Like a vulture swooping in on a dying prey animal, Barclays is gorging itself on the vitals of dying Lehman Brothers. In exchange for $1.75 billion, Barclays will purchase Lehman's assets, including its North American investment banking operations as well its New York headquarters and two data centers.

Washington Mutual May Be Next

It is being reported that JPMorgan Chase is a potential buyer for the ailing thrift. WaMu has seen its stock price battered as it slumps under the weight of a deteriorating loan portfolio. It's best bet to avoid liquidation is to find a merger partner.

Turbulent Markets...And Opportunity, Ahead!

If you spend any time in the office break room, you're likely to hear co-workers lamenting these difficult economic times, languishing investment portfolios, and an uncertain future. Get your coffee and move on because you do not want to fall into that mindset.

Tough times bring opportunity for those courageous enough and savvy enough to avoid despair and panic, and take advantage of the opportunities that present themselves. There are people making money in this market right now.

Free Trading Report And Video Training Materials Available

My friend and trading mentor has compiled some fairly extensive training materials that he is making available to traders on a complimentary basis for the next few days. The report is ready for download and the videos are being released on a daily basis.


These materials are intended to demonstrate how you can not only survive tough economic times, but proper during them. Take advantage of them while they are available.

Christopher Smith
TheOptionClub.com

Monday, September 15, 2008

Merrill Lynch Sold, Lehman Brothers Bankrupt, While AIG And WaMu Totter

The financials are falling! The financials are falling!

We awoke this morning to the cry of Chicken Little, only this time our poultry little friend is not over reacting.

Lehman Brothers tried to avoid bankruptcy over the weekend by negotiating a buy out with Bank of America and Barclays. Henry Paulson, Secretary of the Treasury, had told the market not to expect the tax payers to bail out Lehman Brothers and there was none.

With no government guarantee to protect them against losses, Barclays and Bank of America walked away from a potential sale, prompting Lehman Brothers to file for Chapter 11 Bankruptcy protection earlier this morning.

When Bank of America walked away from Lehman Brothers, they walked over to Merrill Lynch and negotiated a price to acquire the firm.

AIG is scrambling to raise capital to avoid what would be a devastating downgrade of its credit rating. The company rejected a couple of deals that would have injected needed capital, but at the price of control shifting to those capital investors.

An AIG deal may require Fed participation and it is presently unclear whether the government is willing to take on more now that they have a $200 billion bail out to finance off the tax payers' back following the take-over of Fannie and Freddie.

Washington Mutual is now seeing as much as 45% of their Payment Option ARM loans, which were written by the thrift from 2004 to 2007, heading into default.

Today's market open is going to be rough. Minutes prior to the open the DJIA futures are down 370+ points, the S&P 500 futures off more than 45 points, and the Russell 2000 showing 23 points to the downside.

We could talk about how you could have made a small fortune playing these falling financials to the downside. While that is true, it feeds into the sort of greed and lack of risk management that has lead Lehman, Merrill, and perhaps AIG and WaMu to their demise.

Risk management is an absolute necessity, if you hope to survive and even prosper during what will be remembered as the worse financial crisis to hit Wall Street since the market crash of 1929.

Christopher Smith
TheOptionClub.com

Sunday, September 14, 2008

Lehman Heading For Bankruptcy

Bank of America and Barclays were Lehman Brother's best, and probably last hope for a deal to unload the faltering 158 year old financial firm. According to reports over the weekend, that deal is falling apart.

Understandably, Bank of America and Barclays do not want to take on the risks being carried by Lehman Brothers without some form of government guarantee. Those guarantees appear to be in short supply now that the U.S. taxpayer has already signed up to bail out Bear Stearns, Fannie Mae and Freddie Mac.

The bailout of the two GSE's alone are expected to cost more than $200 billion.

Lehman's History

Lehman Brothers got its start about 158 years ago as a cotton trading firm in Alabama, and then grew itself to a financial giant. It was the third largest U.S. brokerage, behind Goldman Sachs and Morgan Stanley. The firm's mortgage business was wildly profitable during the recent housing boom, but proved to be the firm's Achilles' heal in the ensuing credit debacle.

Bankruptcy Filing By Lehman Brothers Expected

With Barclays and Bank of America taking a walk and the apparent absence of any willingness by the government to finance a bail out, it appears increasingly likely that this firm will be forced into bankruptcy. The risk of a forced sale or bankruptcy is that Lehman's bad assets will effect the still performing assets of other firms.

More Financial Firms Likely To Fall

Other potential victims of this credit crunch? Concerns seems to be rising with regard to Washington Mutual.

Also, on Friday, insurer AIG, which may see its rating cut by Standard & Poors, said that it is reviewing its business and that "everything is on the table." The popular theory is that the insurer is looking to sell off portions of its business to raise capital and avoid what would likely be a crippling downgrade.

How To Protect Yourself From This Broadening Debacle

This credit crisis is broadening, boys and girls. If you're in this market without a sound exit strategy you may find yourself joining these troubled financial firms.

Risk management is critical to our success in these markets. Yes, we need to learn about the markets and learn about options and how to use them to effect our plans in the market. Just as important as that foundation, we must also learn how to structure our trading portfolio to avoid being over leveraged and to design our trading plans and systems to adjust or exit our positions when the trade is not working out as we had planned.

Free Trading Videos Reveal Common Mistakes Being Made By Traders

The person who taught me the importance of risk management and how to apply it in the context of a trading system is Bill Poulos, a 30+ trading veteran.

In appreciation for what he taught me and for those who could also benefit from his guidance, I put together a Squidoo lens that provides free video interviews featuring Bill speaking on the subject of risk management.

Tumultuous markets always present trading opportunities. Spotting those opportunities is only part of the solution to prospering in tough times. Another key element is avoiding the mistakes so many others make.


Take the time now to view these five videos, now...

Christopher Smith
TheOptionClub.com

Thursday, September 11, 2008

Bill Poulos Trading Interview Videos on Squidoo

Yesterday, I posted a video interview of Bill Poulos who shared some insights. That video was part of a series and I've not got access to all five videos.

But, instead of posting them all here, I created a lens on Squidoo. So, check out the Bill Poulos Trading Video Interviews on my new Squidoo page.


If you find something useful there, all I ask is that you rate the page.

Thanks, I appreciate it.

Bill Poulos Market Mastery Video

Today I have the first part of a five-part interview series featuring my friend and trading mentor Bill Poulos. The video is called "Mistakes Traders Make" -- and it's simple, easy to understand, and incredibly powerful thinking.

In this first interview session, Bill was asked about the mistake that people make by trading stocks (or Forex, or anything really) when they shouldn't. Bill's answer is so...simple - So simple, you'll probably ask "Why didn't I think of that?"



I'll be posting additional videos between now and Saturday, so be sure to check back here.

Monday, September 1, 2008

Adjusting The XLF Options Trade

Last month we opened a diagonal option spread on the XLF, after watching the financial stocks get hammered in the market for most of the year. It appeared that the XLF had found support at around $20 per share. A video was produced showing how the trade was set up, but since that time we have adjusted the position once and are considering a second adjustment.



This second video demonstrates how the two adjustments modify the risk and reward profile of the position, to help keep us profitable as the XLF continues to move in the market.

Keep in mind that this is not a recommendation to trade or trade advisory service, but intended as an educational opportunity to demonstrate how adjustments can be made to an options position to keep your trades profitable.

Christopher Smith
TheOptionClub.com

Friday, August 29, 2008

Ron Ianieri Option Mastery Video

Did you manage to attend last night’s training? If so, you know that the web conferencing platform was a total disaster...

You know, I was considering switching TheOptionClub’s platform over to the same one Options University was using. After last night, I’ll re-think that one.

Good news...

The presentation was recorded and is now available for re-play here:


During this presentation, you will learn why understanding the greeks, as well as synthetic and embedded positions, is so important. Before I really understood these subjects I traded iron condors, calendar spreads, vertical spreads and the occasional long call or put.

What do I trade now?

Now I trade iron condors, calendar spreads, vertical spreads, and the occasional long call or put. Wait a minute... Those are the same strategies. So, what’s the different?

The difference is that before I learned to master the greeks, and the synthetic and embedded positions, I was losing money.

So, how can I be trading the same option strategies but making money, whereas before I was losing money? It’s simple...

Until I learned to master the greeks I was unable to properly evaluate and monitor a position. Learning to identify and use synthetic and embedded positions, combined with my newly acquired knowledge of the greeks, gave me the insight I needed to make effective adjustments.

When I started trading again, after learning these subjects, it was like the difference between a dark night and a dazzling bright morning. I saw what was happening to my positions and I knew how to manage them.

How did I learn? I learned from Ron, who taught me just like I was one of his trainee floor traders. What’s more, he’ll do the same for you, if you want.

I’ll tell you more about how and what I learned later, if you’re interested. Right now, I just want to encourage you to set aside some time this weekend to sit down with a hot cup of coffee, or tea, or whatever keeps you attentively alert, and watch the video.


Have an awesome Labor Day and enjoy the time off!

Christopher Smith
TheOptionClub.com

Tuesday, August 26, 2008

Learning How To Use Options Effectively and Profitably

If you've been on our message board lately, you have read a lot about whether it is better to be a buyer or a seller of options. Some say it's better to sell options. Others say it doesn't matter.

Who's right?

If you really understand options, you know the answer to that question.

You also know that we're trading options in an environment where we can, as retail traders, prosper if we take the time and make the effort to develop the necessary knowledge.

Now, if you're trading without a solid understanding of options you are trading at a disadvantage. That is a dangerous way to trade...

So, how can you master the subject of options in the shortest time possible?

To answer that question, I'd like to invite you to a webinar presentation this coming Thursday.


The presentation will be put on by Ron Ianieri from Options University. He is going to share some effective, profitable option trading strategies and how you can master these techniques quickly and easily.

These are some of the same techniques that Ron used, and taught to other floor traders, while making his living on the Philadelphia Exchange for over 15 years. It's all about gaining an "edge" in the market to help you get and stay profitable.

Most option trading courses available in the market, regardless of their cost, teach a collection of option strategies but fail to provide students with a solid understanding of how and when to use those strategies in the market. This failure is potentially expensive and places you at a disadvantage, because you'll often find that you're fighting the market.

In other words, your analysis of the market may be "spot on," but you can still lose money simply because of your choice of strategy. Unfortunately, it happens time and again when traders do not fully understand the option strategies they're using.

So, Ron is going to help us understand WHY different option strategies work when others do not. He will share some insight into WHEN to use each strategy. Ron will also help us understand HOW to select the best strategy for the given market conditions.

If you intend to trade options, it only makes sense to fully understand how options work and how, and when, you can use them to achieve your goals. Here is an opportunity to gain some of that knowledge...


So, Thursday night Ron is going to talk to us about how to avoid killing ourselves, and our portfolios. If you attend, you will also have access to a special report being prepared for the event.

If you've been questioning how to gain traction with your options education and trading, I encourage you to set aside the time and join me for the presentation.

Christopher Smith
TheOptionClub.com

Monday, August 18, 2008

August Options Expiration, Trading Plans & Trading Psychology

August’s expiration is now behind us and we can turn our eyes toward September. Before we do, I thought it would be helpful if we turn our eyes back and review what happened between July 15th and August 15 in these rather volatile markets.

On July 15th, the DJIA hit a low of about 10,828 and rallied from that point to close friday, August 15th, at 11,660. That was an 832 point run, or a nearly 7.7% rise over a 30-day period. Impressive.

The lumbering S&P 500 marked a low of about 1,200 on July 15th, then rallied from there to close at 1,298 on Aug. 15th. A nice 8% pop!

How about the NASDAQ? Well, NDX had a low, also on July 15, of 1,761 and rallied to 1,957. That amounts to 196 points, or an 11% gain. Holy mackerel!

Get this, though. The RUT notched a low of 647 on July 15th and closed Friday at 753, for 106 points of upside gains. That’s more than 16% in 30 days!

Great news, right?

Well, before we continue our celebration I want to share with you what I’ve read in e-mails and posts from our message board. A lot of our members like to trade vertical credit spreads and/or iron condors on the indexes. I happen to be one of them...

There have been a lot of reasons to be bearish this month. I recently read in IBD, for the first time since I’ve subscribed to the paper, the word “stagflation” being used in the present tense. The dreaded condition of a stagnating economy and rising inflation, that we have not heard since the 70’s...

Jobless claims are up, consumer sentiment is low, the economic stimulus tax rebates are now memory, Georgia and Russia in open warfare, and the Chinese have more gold medals than us...signaling the decline of U.S. dominance in the world. The point is that if you were thinking about selling bearish call spreads a month ago, there was plenty of bad news out there to support your thinking.

Now, when the market began to rally the initial thought we all likely had was that this was that this was going to be another bear market rally off a relative low. To be expected, no doubt. A great opportunity to sell (more) call spreads!

Did I sell call spreads? Sure, I did.

But then the market kept on rallying. No matter, because there was little positive news out there supporting this rally so it will reverse any day now, taking pressure off my short calls. Sound familiar?

Yet, the market kept pushing higher...

If you had sold those call spreads without first establishing a defined trading plan, it is likely that you had an internal debate with yourself for much of the last 30-days. It probably went something like this...

July 23 - Wow. My short strikes are really under pressure. Should I roll? This rally can’t continue. I’ll hold on, wait for a pull-back and let theta do its job in the interim. Hmmm.

July 24 - Ah hah! We’re selling off. I knew I was right to hold on, and now we’ll head lower and I’ll keep my credit.

July 28 - Another down day. I knew that rally wasn’t going to hold. I should have sold more call spreads before it rolled over.

July 30 - Hey, yesterday took back all of those losses and today we’re up again. We’re supposed to be going lower. I hope that this market stays put because I really don’t want to have to roll my 740/750 call spread.

Aug. 4 - Oh, good. Selling off...

Aug. 6 - Oh, no. Another two up days. I’m no less than 15 points from my short strike. Maybe I should roll up, but I can’t get enough credit at the higher strike to offset the cost and I’d have to take a loss this month. Hmmm. I know this market is going to roll over and when it does I’ll have already taken the loss. Maybe I’ll just watch things because I know this market is going to start selling off.

Aug. 7 - Yes! We’re down, going down, oh yeah! Tomorrow’s Friday, it will be light, I’m sitting on this over the weekend and Monday I bet we’ll see it sell off some more.

Aug. 8 - Yikes. This can’t be right. Just 6 points away from my short strike? Okay. Um. Roll? Geez, why can’t this market just sell off for a couple days and give me a break here. This spread is far to expensive to buy back right now. It’s Friday. The weekend is two days, which means I just have a few days to survive next week until expiration. Theta is going to really be sucking on this spread. Oh, man. Maybe I should just buy it back. I’ll think about this over the weekend...

Aug. 11th - Oh, crap! Two big up days. I’m in real trouble, now. My spread is now in-the-money, where I never expected to be. I should have adjusted when I had the chance. What do I do now? Well, this market has to pull-back now. Maybe that was a climax run and it will all roll over tomorrow...

Aug. 12th - We’re down, just a bit, but at least we’re down. Still a little in-the-money, but with a little more selling tomorrow this whole trade might turn around for me.

Aug. 13th - Started lower this morning, but closed a bit higher. Just two days until expiration. This is a big mess. How’d I ever let my spread go in-the-money. Why didn’t I roll when I had the opportunity. Maybe if I post on the OptionClub message board, one of those guys could help me out...

“Dear Discussion Board, I sold an August 740/750 call spread on the RUT and it’s now at 747. What should I do?”

...I hope someone can help.

Aug. 14th - not much help on the discussion board...they just keep replying to tell me I should have had a plan...follow the plan...too bad, so sad... I need the market to reverse. Today’s the last day I can trade. Should I sell the spread and just take the loss? Maybe we’ll sell off in the afternoon. Let’s see... Oh, no! The RUT’s now above the strike of my long contract...my spread’s totally in-the-money! I can’t get out. I can’t afford a max loss. Maybe there’ll be some selling at tomorrow’s open. Yeah, I bet a lot of traders will want to take the profits before the weekend, so tomorrow’s open will be lower and the RUT will settle lower. Maybe it’ll even gap down a bit, maybe there’ll be some really bad new before the market’s open. It could happen. Man, I hope something happens...

Aug. 15th - Oh, no. The RUT’s settlement value is in...765! Disaster...

This chronology was a little work of fiction on my part, but for some, perhaps even you, it sounds uncomfortably familiar.

What went wrong?

The problem that occurred had nothing to do with the market, or even the selection of the 740/750 strikes for the vertical spread. It had a lot to do with that internal conversation our fictional trader had with them self, rationalizing their way out of taking a loss when the market rally materialized, instead hoping for a reversal to save their trade.

There are very few people who can make well reasoned decisions under pressure. That is why athletes, the military, law enforcement, etc., all train and respond according to predetermined plans of action. If X happens, then I do Y...

It also had a lot to do with a fundamental failure to understand what was happening with that vertical option spread. Once the credit spread was sold, theta was the primary driver behind our profitability. That positive theta needs to be balanced against negative gamma, though.

Holding the position into the days leading up to expiration, with the market closing in on our short strike, left our trader in a very vulnerable position. They were no longer in control of their risk, but relying on hope and prayer that the market would "give them a break."

This is where options tend to get a bad name. Someone puts on a large short position and gets bush whacked by the market. Let's blame the options. They're too risky.

Options are not risky, though!

It's no different than blaming the hammer for clobbering your thumb. So, hammers are dangerous? They are if you use them carelessly. Otherwise, they are very useful tools.

So are options. In fact, options were created to reduce risk in an investment portfolio. The problem we faced above was that our trader was so focused on earning an easy profit, they forgot about the risk and then failed to take steps to manage it once the trade started going against them.

Tools, hammers and options included, can be dangerous when you do not know how to use them properly. Understanding how options work, understanding option "greeks", understanding things like synthetic and embedded positions, becoming adept at position adjustments, etc. These are all part of trading options and if you're a little uncertain about one or more of these subjects, then it would really pay to spend some time studying those areas where you have questions.

You might consider taking a few moments right now to watch a video that demonstrates how options can be used safely, intelligently, and effectively for investing and trading.


Trade well,

Christopher Smith
TheOptionClub.com

Wednesday, August 6, 2008

Diagonal Option Trade on XLF Featuring OptionVue TradeFinder

Yesterday, I began looking at the the Financial Select Sector SPDR, otherwise known by it's ticker XLF. This ETF made a bottom recently, and has found some support at $20 per share. With vols high, my thought was to sell some premium but I did not want to walk into a situation that I may very well regret.



Admittedly, this trade is not sexy. If I am right, and XLF consolidates, I should be able to safely sell premium each month out into January. If XLF drops below $20 per share, I will have a "free" Jan'09 $15 Put to limit my downside. This allows me the choice of taking assignment should the share price fall below $19 per share, then begin selling covered calls. Alternatively, I can simply roll the short put option each month even if it is in-the-money.

This trade won't make me rich, but I should be able to earn a fairly decent yield from it between now and year's end.

Christopher Smith
TheOptionClub.com

Sunday, August 3, 2008

FX Options Training and PDF Report - FREE

We have been hosting a number of webinars this year, and it ain't over yet!

Our next presentation is on the topic of FX Options. Yes, there are options available on foreign currencies and we're going to help you better understand how to make use of o them...

If you are a currency trader, you're going to really get a lot of out this because options can be used to hedge your currency positions and even enhance profits.

Even if you have never traded currencies, there is even more benefit for you because you don't need a Forex account to trade FX Options. You'll be able to take positions on the currencies right from your standard, options enabled brokerage account. Want to hedge your currency risk? Maybe make some money trading the Euro or Canadian Dollar?

In addition to the presentation, a PDF study guide is being made available. It explains how to get started trading FX Options is being made available courtesy of Options University.

You can get the PDF immediately. The webinar presentation is:

Tuesday, August 5, 2008
6:00 p.m. PST / 9:00 p.m. EST


Use the above link to register, and once you do, you'll be directed to the PDF download area where you can get the report and review it before the presentation. I suggest printing it, so that you can take notes.

I hope to see you there!

Christopher Smith
TheOptionClub.com

P.S. If you want to be notified of all our presentations, just click below and scroll down to provide your name and e-mail address. TheOptionClub.com

Wednesday, July 30, 2008

Finding Good Option Trades...

Tonight is part 2 of our training with Jim Graham from OptionVue...

We have been hosting a 3-part training session with OptionVue, intended to teach you how to approach the markets in an effective and intelligent manner. Our first training session was held a couple weeks ago, which introduced the OptionVue 5 software and demonstrated it's basic functions.

The presentation tonight will jump into the art and science of finding good trades. What you'll learn is how to identify good trades and how to choose the best from among them.

Interested? It's a free presentation...

It starts tonight at 6:00 p.m. PST / 9:00 p.m. EST. If you head over to our main web page you can submit your name and e-mail, and you'll receive the login information.


We even arranged for a 30-day trial of OptionVue 5, giving you full use of the software and all of the necessary data feeds for just $24. Plus, you get educational materials, one-on-one time with an OptionVue trainer, and you can "play along" during our online training.

Just use "OptionClub" as your discount code when ordering on the OptionVue website or by telephone.

I'll see you tonight!

Christopher Smith
TheOptionClub.com

Friday, July 25, 2008

Options University's FX Option Materials Now Comes With Forex Profit Accelerator

This month Bill Poulos re-released his Forex trading course. I have not been writing much about it because I covered it in detail at the time of its initial launch late last year.

However, I was just made aware of something completely new, which I am now looking into, and thought that I should make you aware of as well.

There are not many option educators out there that I recommend. The only company I have recommended is Options University, although in the last year or so I have seen a very small number of educators, such as our friends at OptionVue, enter this area as well.

In any event, Options University has been working on new materials applicable to the new FX options offered through the ISE exchange. The ISE FX contracts are denominated in U.S. dollars, are cash settled, and allow you to intuitively trade the currency markets without getting involved directly in the interbank markets. A really nice financial product, which is now available on the major currencies.

Bill has pulled some strings and just announced the Option University's new FX product is being added as a bonus to the Forex Profit Accelerator Course.

Now, I do have a copy of Forex Profit Accelerator that I picked up at the time of its initial launch, and can tell you that it is an excellent course. I wrote a full featured review of the course, which is available on another website.

I have not yet seen Option University's new FX materials, however. What I can tell you is that I've been working with Ron Ianieri and Brett Fogel from Options University for years, now. They offer good value at prices that tend to undercut their competitors.

Right now you cannot get an FX options course anywhere, at least not that I am aware. You could do like me and scour the ISE website, dig through news releases, etc., and try to pull together enough information about the product to begin formulating some plans for trading these new currency options. I am still working on that, by the way. Or, you can let Ron Ianieri's team do the labor intensive work and go with their materials.

But, let me be clear. I do not recommend buying Bill's course to get OU's FX options course. However, if you are considering purchasing Forex Profit Accelerator I do encourage you to make sure you are also getting OU's materials, too. You can do that here:


It just makes sense that if you get the one, that you try to pick up the other for the same price.

I thought you should know...

Christopher Smith
TheOptionClub.com

Sunday, July 20, 2008

OptionVue Empowers Traders With BackTrader

The majority of options traders lose money, but the majority of professional traders are profitable. Why is that?

Before a professional traders places capital at risk, they are confident that their strategy is profitable. The way they develop that confidence is through the process of testing their strategy on historical data, to see how it responds in differing market conditions.

We are presently hosting a series of three training sessions with OptionVue to teach traders how a sophisticated tool like OptionVue 5 can be used to make them better, smarter traders. Personally, I am new to OptionVue, but I am learning my way around the program.



The above video demonstrates how to use OptionVue Backtrader to test a trading methodology over a period of time. This demonstration reveals how historical data is used in OptionVue to give the trader an idea as to how their rule set will perform.

If you want to join us, the training is offered for free. You can get a 30-day trial of OptionVue 5 for half the normal cost by using "OptionClub" as your discount code. Order the trial and they'll ship a whole package of materials to you. You can then join us on July 30, 2008, for our next session.

To recieve more information about the training, visit our home page at http://www.theoptionclub.com.

Christopher Smith
TheOptionClub.com

Friday, July 18, 2008

OptionVue Presentation On Video Re-Play

We are hosting a training series with OptionVue, and just help our first introductory session. All of the training is offered on a complimentary basis.

If you missed the first session with Jim Graham, the video re-play is now available:


Jim gave an excellent introductory presentation and you're more than welcome to join us for our future workshops.

If you would like to get the 30-day trial, I am asking that they keep the discount code active through the weekend but have not received confirmation on that, yet.

The discount code is "OptionClub" (case sensitive and without quotes). You can try ordering it at:


Watch the video re-play and if you want to get more information about our free advanced training sessions, visit our home page at TheOptionClub.com. Sign up on our seminar announcement list and you'll be notified of each event we hold.

Christopher Smith
TheOptionClub.com

Thursday, July 17, 2008

Hedging Your Portfolio With OptionVue 5



Last night we had our first of three presentations by the folks at OptionVue. If you missed it, I'll be sending out a link later today, or tomorrow, that will provide you access to a video of that presentation.

Jim Graham provided an excellent overview of OptionVue 5, as well as a special code that gets you access to the software at more than half-off.

I have now been trading options for several years. Over that period of time I have learned many lessons, most of them the hard way,

The experience has taught me that option trading is very much a business. Too often, traders become obsessed with profits and allow themselves to get overleveraged and fail to pay attention to the downside.

Professional traders don't spend a lot of time worrying about profits. They worry about risk. It's the risk that puts us out of business.

OptionVue 5 is a serious piece of software designed for professionally minded traders. Assessing and managing risk is a key aspect of what it does. You won't see that in other programs.

While you're waiting for the video recording of last night's presentation, I recorded a video that profiles just one of the risk mangement tools. I admit that it probably makes me a geek, but I'm excited about this one...

It will also very likely save your butt...

The video is posted above.

Our next live webinar session with OptionVue is in two weeks. Wednesday, July 30, 2008, at 6:00 p.m. PST / 9:00 p.m. EST.

Now, this is critical. You are quite welcome to join us for that second session, even if you've missed this first one. The welcome mat is out, even if you don't have OptionVue 5. Just join us and learn as much as you can.

If you want access to OptionVue 5, and this is very time sensitive, you have the opportunity to get a copy of OptionVue 5 for less than $25. It's a 30-day trial version, but it is fully functional, includes 30-days of data service, and is shipped to you with educational materials.

If you want to take advantage of the trial, then you need to use this case sensitive discount code...

Got to: http://www.theoptionclub.com

Provide your name and e-mail, and you'll receive a discount code that you may use to get a 30-day trial of OptionVue 5.

The trial package will be mailed to you, along with the educational material. Then, on July 30th, we're back online with Jim Graham from OptionVue and he will begin teaching us how to put the software to work.

Another session will be held the following Monday, where he'll teach us even more about options, trading, and the software.

If you're mulling over the whole $25 thing, consider this. It comes with "Simple Steps To Option Trading Success," a book co-authored by Jim Graham and Steve Lentz. The retail price on that is $19.95, then add the cost of shipping. You also receive a video tutorial, the software, and the data feed. The data feed is almost $50 per month...

That's about $80 worth of stuff, and we have not even talked about the training sessions...

Christopher Smith
TheOptionClub.com

Saturday, July 12, 2008

Stock Option Training With OptionVue



You won't want to miss this event, because this goes way beyond a software demonstration...

We have scheduled three online presentations. The first presentation will introduction OptionVue 5, which is the state-of-the-art options analysis software package that sets the standard for all others. You will be provided with a discount code, allowing you to get a fully featured copy of their software that you will be allowed to use for 30-days.

This will cost you about $25, which is less money than most of us will spend if we were to go out for lunch and a movie over the weekend. I've used a lot of different tools for options analysis and OptionVue is by far the most robust program out there. It's professional quality. So, even if you just use it for 30-days you should gain more insight into options from this experience than you would from a 2-day hotel seminar that might cost $3,000.

Session two will pick up several days later, which is enough time for the software to arrive in the mail. OptionVue's trainer will walk us through its configuration and begin teaching us the basics of how the software works. He'll turn us loose for a few days and allow us to get acquainted with the program.

The third session is where the "rubber meets the road," and we get to see how to actually make money. There will be a lot of discussion about option strategies, trading, and OptionVue's trainer will show us how their software helps us in all aspects of our trading. When this session is over, you'll still have quite a bit of time to continue using OptionVue 5 during your trial period.

Not enough?

No worries there, because you can also get some one-on-one instruction. That means you can ask the questions you want answers to and learn how the software applies to YOUR trading. How can you find the trades you want in your portfolio? How might you adjust those troublesome positions? How do you get your portfolio hedged against an adverse market move?

The first session begin on Wednesday, July 16, 2008, at 6:00 p.m. PST.

There is no cost, no obligation, and no gimmicks to attend these sessions. You'll get a lot more out of each session if you have OptionVue 5, so for $25 you can have a full featured copy of the software for 30-days.

OptionVue Trading Presentation Registration

Do not put off getting yourself registered. Get it done now and I'll see you on Wednesday!

Christopher Smith
TheOptionClub.com

Thursday, July 10, 2008

Your Oppotunity To Learn About Options On An Advanced Platform

I have three dates that I will encourage you to put on your calendar to save the time. Do that for me and I'll tell you what I have got planned for all of us. (All of the times are Pacific Standard.)

SAVING THE DATES COULD MAKE YOU A BETTER OPTIONS TRADER...
  • Wednesday, 7/16/08 @ 6PM PST
  • Wednesday, 7/30/08 @ 6PM PST
  • Monday, 8/4/08 @ 6PM PST
Once you've got those marked down, read on and I will explain what we will be doing...

Last month I attended the Trader's Expo here in Ontario, California, and I met up with a couple of the guys from OptionVue. For years now, I've used a number of different options analysis packages but I have always known that OptionVue was the standard against which all others were compared. It is simply the best out there. This is sophisticated, professional level software.

I was eager to visit their table because I'm done futzing around with lesser solutions and I wanted to test drive OptionVue. We got to talking there at the Expo, and I made a deal that I think will be very educational and quite a bit of fun for me...and you.

OptionVue offers a 30-day trial for about $50 from their website. You can head over there right now and request the trial at that price, but I've arranged for that price to get halved.

That's just the beginning, though...

RECEIVE INTENSIVE, HIGH-LEVEL OPTIONS EDUCATION
OVER THE COURSE OF THE NEXT 30 DAYS...

Step One: Getting The Discount Code

On the first date I had you save, we will have a software demo with Jim Graham from OptionVue. At that demonstration, you will be given a discount code that will allow you to order the 30-day trial at a discounted price.

The trial package will be sent out to you in the mail. I've already got mine and it came with the software, literature, a video CD that shows how the software works, etc. It's the full package.

Step Two: Professional Training
(No Additional Cost...)


On July 30, we will meet online again. By then, if you were prompt about ordering the trial version, we will all have the software. Jim Graham will then show us how to make sure our software is properly configured and begin teaching us how to use it. He'll then turn us loose to play with it over the weekend.

Step Three: More Professional Training
(
Still No Additional Cost...)

On August 4, we meet up again online and Jim will show us how OptionVue can be used to actually make us some money. You will still have some time left on the trial period, so you can then take what you learn here play with it, and back test it, or even trade on it if you wish.

Step Four: Still More Training One-On-One
(
Again, It's Still Covered By Your $25)

That's not all though. If you want to get on the phone with a trainer for some one-on-one personalized support during the trial period, OptionVue will make that available to you, too. So, if you want help learning how to use OptionVue to find, manage, or adjust trades, call 'em up!

So, for your $25, we've got three webinars, the best options analysis software in the world, educational materials, and access to live support for a month.

Changing Your Financial Future One Cup Of Coffee At A Time...

How many trips to Starbucks is that? I don't think you could even eat dinner out once for that price, but the knowledge you gain could make a real difference in your financial and trading future, even if you don't buy the software!

To get the details for registering, just provide you name and e-mail address below. Or, if you want our options trading mini-course, use the registration form above, and I will get the registration details to you as quickly as I can.

Christopher Smith
TheOptionClub.com















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Monday, July 7, 2008

What To Do About Growing Threat Of Bear Market

So, we're back after a nice long, 3-day weekend and it appeared that the market was going to finally see a little upside. It did not last, though. The DJIA shed about 56 points, the S&P 500 dropped a little over 10 points, and the RUT looks like it may break take out the lows it established earlier this year.

Late last year, I began looking at the foreign currency market as an alternate market for at least some of my trading activities. Don't get me wrong, I'm still trading the equity markets and have been holding my own. However, I want to diversify myself a bit.

Several months into my study of the foreign currency market, I can tell you that there are some real benefits to be gained there but the Forex market presents some real pitfalls that you should be cautious about. The good news is that I have learned some very effective ways to limit my risk in the foreign currency market, and I'm willing to share some thoughts on the subject.

One of the people I have turned to, to help prepare me in my trading, has assembled a multi-media training package. The best part is that he is giving it away right now, to anyone who asks for a copy.

This free multi-media training package debunks much of the misinformation that is presently out there. It includes an updated report that he issued late last year, as well as newly added video materials.

Like I mentioned earlier, I've been studying the Forex markets since late last year and I hope to begin sharing some of that information with you over the coming months. If you're trading options, I think you'll find this information very useful and possibly very profitable.

On the other hand, I don't want to spend my time teaching the basics of the Forex market or plowing ground that has already been plowed, especially when you can be ahead of the curve simply by taking advantage of these materials.

The good news is that this is really easy. In addition to a collection of reports, you will also provided some video tutorials that make the material very easy to get through.

There is presently no charge the report, but that will not be the case forever. You will want to access your copy now...


I hope you enjoy these materials as much as I have, and I look forward to discussing the subject of foreign currency trading in the coming weeks.

I encourage to take advantage of this offer while it lasts.

Christopher Smith
TheOptionClub.com

Monday, June 30, 2008

Ron Ianeiri Interviewed on CNBC

I'm sitting here this morning with CNBC on in the background, and they mention a video of Ron Ianieri from the Options University. I pulled it up on the CNBC website and, after watching it, thought some here would find it interesting.

http://www.cnbc.com/id/15840232?video=778647091

I've known Ron now for several years, and it comes as little surprise to me that he is garnering attention from the national financial media. Ron is the developer of the Options Mastery course, which is the only options course I've recommended now for at least three or four years. In this particular video, he discusses the topic of shorting the market as well as the thorny subject of oil speculation.

It's short, so all you need is about 2 minutes to watch.

Christopher Smith
TheOptionClub.com

Monday, May 19, 2008

Iron Condor Option Strategy Webinar

I have trading iron condor and credit spread positions for years, now. During that period of time I have been sharing quite a bit about my experience and insight concerning this strategy, but no matter how much I do so there are always more people who want more.

There has been a bit of pressure to put together some form of presentation concerning iron condors and last year I decided that I would give into it. We have arranged for a sponsor and a complimentary webinar presentation that will be offered from time to time.

A free online report has been prepared, and if you're interested in what you see there you can sign up for our notification list. You will receive an educational MP3 presentation just for putting yourself on that list.


So, take a little time and read the report. Get signed up on our notification list, enjoy the MP3 presentation, and then join us for one of the webinar presentations. The next one will be this coming Saturday, May 24th, at 9:00 a.m. PST.

Christopher Smith
TheOptionClub.com

Wednesday, May 7, 2008

How To Get An Edge In This Market

Well, the DJIA made it above 13,000 last week, surrendered that psychological price level early this week, and now we're back above that mark.

As I've been saying all year, this is a difficult market in which to make money. There are those who are doing it, though.

How do they do it? It's all about having an edge...

This Thursday, May 8, 2008, at 6:00 p.m. PST (9:00 p.m. EST) Bill Poulos is hosting a complimentary one-time web-seminar. During the presentation he has promised to reveal a simple, but highly effective method that provides such an edge:


If you would like to attend, just use the above link to register and reserve a seat for yourself.

Also, whether you can attend or not, you may also want to download the following report:


The report addresses several key concepts such as how to evaluate a trading method to determine whether it provides you with an edge. (See, p. 6.) Learn a simple but effective method to determine the profitability of a trading method. (See, p. 25.) Quite a bit more is covered, too.

Bill will pick up on these, and other concepts, in his live presentation. It's all about learning how to identify when you have an edge...and when you don't.

If you can make it to the presentation, Bill will cover all of these concepts and you'll also enjoy a rare, live Q&A session with Bill.

...BUT...

"Seating" for this event is limited. The web-conferencing platform can only accommodate so many attendees. If you're interested in attending, you'll want to save a spot here:


Once registered, you will receive a password that will give you access to the event this Thursday.

Trade well, mind your risk, and see you on Thursday evening!

Christopher Smith
TheOptionClub.com

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