Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which...
-
Upload
nguyenphuc -
Category
Documents
-
view
224 -
download
5
Transcript of Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which...
![Page 1: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/1.jpg)
1
Disclaimer
The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In all circumstances where you are looking to apply the System to your own personal needs you should consider whether you should first seek advice from a suitably qualified investment professional.
Figures and information provided refer to the past and past performance and are not a reliable indicator of future results. Where stocks are quoted in foreign currencies, returns may increase or decrease as a result of currency fluctuations. In the event that you, as a recipient of this presentation, have any doubts as to the suitability of the investments or services promoted you should seek advice from a suitably qualified investment professional.
You should be aware that the value of shares and other stocks may rise or fall. The rules on tax can change, and these changes may have an influence on the effectiveness of the System in the future. It is for you, as the tax payer, to assess the System’s effectiveness throughout the process. Some assets are more readily realizable than others, and you should bear in mind that it may be difficult to deal in or obtain reliable information about their value. You should always take account of dealing charges. In addition to any initial charge quoted there may also be a bid/offer spread or dilution. Investments in options and other forms of derivatives may expose you to a higher degree of risk given market circumstances relative to other forms of quoted investments.
The System even if used in its entirety, cannot be guaranteed to provide specific returns in the short, medium or long term and you should bear in mind that individual securities may and can fluctuate considerably in value from day to day. The System has been designed without any reference to the specific interests of a particular investor. We reiterate, when using the System, you must take into account your own specific needs and liabilities.
This financial promotion has been approved by European Financial Publishing Ltd trading as VectorVest UK which is authorized and regulated by the Financial Services Authority under Register No 543038. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH.
![Page 2: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/2.jpg)
2
Trade Set-Up
Maximizer
➢Module 4 Review
➢4 Key Principles
➢Big Mistake To Avoid
➢Action Items To Take
![Page 3: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/3.jpg)
3
Trade Set-Up
Maximizer
![Page 4: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/4.jpg)
4
Multiple Graphs To Look At
Don’t Get Paid Enough
![Page 5: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/5.jpg)
5
Key Principles
To Get Paid Top $$
1
![Page 6: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/6.jpg)
6
Remember
this from
Module 1?
Use the Over/Under Priced
Indicator as your guide to cheap
vs. expensive Option Premium
![Page 7: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/7.jpg)
7
Focus your trading on areas where
Volatility is likely to decline.
When Volatility rises, an expensive
option becomes even more
expensive & can kill your trade!
![Page 8: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/8.jpg)
8
Let’s look at 4 Scenarios of Selling a Put
on Tesla to better understand how Price
& Volatility can affect the option price.
This models selling the 180
Put on TSLA on May 10.
![Page 9: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/9.jpg)
9
Scenario #1:Stock rises.
Volatility stays flat.
Result:You hit 50% profits in 8 days!
Scenario #2:Stock stays flat
Volatility stays flat.
Result:You hit 50% profits in 15 days.
![Page 10: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/10.jpg)
10
Scenario #3:Stock rises.
Volatility rises.
Result:You hit 50% profits but in
16 days!
Scenario #4:Stock stays flat.
Volatility rises.
Result:You hit 50% profits but in
25 days!
![Page 11: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/11.jpg)
11
16 days 8 days
25 days 15 days
Stock
Rises
Stock
Flat
Volatility Rises Volatility Flat
Focus your trades to where the
options are the most overpriced
or have the lowest chance to
have an increase in volatility.
![Page 12: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/12.jpg)
12
And not here…
Because sometimes
seven days can be the
difference between a
gain and a loss!
![Page 13: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/13.jpg)
13
Case Study #1
Date: 4/13
Stock: TSLA
Trade: Bull Put
Volatility: Overpriced BUT…
Options are overpriced but
below the average highs.
![Page 14: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/14.jpg)
14
Choose a 235 / 225 Spread
Based on the 30% ITM criteria.
Profit target = $140 per contract
(50% of the $280 credit)
![Page 15: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/15.jpg)
15
The most you were ever up was
$38, not enough to take profits.
What if you had waited
until Volatility was closer
to the average highs?
![Page 16: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/16.jpg)
16
Case Study #2
Date: 4/22 (9 days later)
Stock: TSLA
Trade: Bull Put
Volatility: Overpriced & near
avg highs
Choose a 237.50 / 227.50 Spread
Based on the 30% ITM criteria.
![Page 17: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/17.jpg)
17
Profit target = $207 per contract
(50% of the $414 credit)
Profit hit, a few
days later…
![Page 18: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/18.jpg)
18
And seven days later?
Big Loss…
![Page 19: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/19.jpg)
19
The recurring theme of the Paycheck
concept is to limit market exposure, because as we saw…
A lot can happen in 7 Days.
![Page 20: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/20.jpg)
20
2
![Page 21: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/21.jpg)
21
VV Search
Matrix
The Matrix is a powerful option scanner that c
![Page 22: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/22.jpg)
22
Starting with the UniSearch we scan
for Premier Growth Stocks.
Press the
OptionsPro button to
transfer the results
to OptionsPro.
![Page 23: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/23.jpg)
23
Choose Bull Put Spread
Your UniSearch Results…
![Page 24: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/24.jpg)
24
Send them to
the Matrix…
![Page 25: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/25.jpg)
25
Click on the Scan
dropdown arrow:
![Page 26: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/26.jpg)
26
Under Advanced Scan select,
Stocks w/Overpriced Options
Results are listed in order based
on the highest difference between
Implied Volatility (IV) and Historic Volatility (HV)
![Page 27: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/27.jpg)
27
Right click on a symbol
& chart the results.
SCLN is overpriced, but
lower than historical highs…
![Page 28: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/28.jpg)
28
LUV is near the
highest historical levels
of volatility.
HA has a better chance of
volatility moving higher.
Not a good option to sell.
![Page 29: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/29.jpg)
29
ProTip:Don’t overlook stocks at the bottom.
They still can be near the top of the
volatility range!
The Matrix allows you to focus
quickly on the best stocks
with the highest volatility.
![Page 30: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/30.jpg)
30
3
VV Search
Matrix
Filter
![Page 31: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/31.jpg)
31
We have a large list of
Stocks w/ Overpriced
Options from the Scan
![Page 32: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/32.jpg)
32
Save this list as a
new Scan List
These are only the Overpriced
Options from the original Safe
and Sound scan.
![Page 33: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/33.jpg)
33
Set the Matrix to scan for
Option Symbols
Filter for the best
candidates to sell.
![Page 34: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/34.jpg)
34
Down to one stock, and
you now know the right
options to build a spread.
VV Search
Matrix
Filter
![Page 35: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/35.jpg)
35
4
![Page 36: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/36.jpg)
36
If this is the result of your
searching, it’s not
necessarily bad.
It’s not about trading for trading sake.
You want the Right Trades, with the
Proper Option market conditions.
![Page 37: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/37.jpg)
37
![Page 38: Paycheck - Module 5 - VectorVest1 Disclaimer The VectorVest Program (“the System”) which we promote is not intended to provide you with specific or personalized advice. In · 2017-2-24](https://reader031.fdocuments.net/reader031/viewer/2022021819/5abe3dab7f8b9a8e3f8cc002/html5/thumbnails/38.jpg)
38