Download Trading Vertical Spreads - The Options Industry Council (OIC) PDF

TitleTrading Vertical Spreads - The Options Industry Council (OIC)
LanguageEnglish
File Size739.2 KB
Total Pages87
Document Text Contents
Page 1

Today’s Topics

Quick review of vertical spreads

Entering spread orders

TRADING VERTICAL SPREADS

Page 2

Presentation Outline

Vertical Spread Basics
Bull & Bear Spreads Defined
Mechanics at Expiration

Important Concepts of Option Prices
Price Behavior of Vertical Spreads
Entering Spread Orders

Page 43

Unrivalled Technology
• Direct access via our proprietary Trader Workstation (TWS) to markets in Australia,
Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, Korea, Netherlands, Spain,
Switzerland, United Kingdom, and the United States.
• The same workstation that keeps IB affiliate Timber Hill—the largest market maker of
equity options worldwide—ahead of the curve through constant upgrades is offered to
institutions, independent investment advisors, brokers, and active traders.
• IB’s smart-routing software performs extremely fast, reliable, direct access best
execution trades worldwide—or choose the market center you want when trading US
shares or options.
• 29 different order types—including stops, stop-limits, trailing stops and OCA.
• Program directly to industry-standard FIX or our proprietary application programming
interface (API).
• A history of innovation, starting with creation of the first handheld computers used for
trading in 1983.
Interactive Brokers is registered with the SFC, NASD, ASIC, SEC, SFA and CFTC.

Note: The risk of loss in trading Securities, Futures and Options can be substantial, and such trading is not suitable
for all investors. Prior to trading, investors must receive the OCC "Characteristics and Risks of Standardized
Options", the CFTC Risk Disclosure and other relevant regulatory disclosure documents from Interactive Brokers
LLC. www.interactivebrokers.com

Trading Facts
• Corporate headquarters: Greenwich, Connecticut, USA.
• Trade stocks, options, futures, futures options, single stock futures, and ETFs
on 48 market centers in 13 countries from a single IB Universal Account.
• Open an account in one currency, then trade in Australian dollars, British
pounds, Canadian dollars, Euros, Hong Kong dollars, Japanese Yen, Swiss
Francs, or U.S. dollars. IB does the FX calculations.
• Specialized account configurations are available for institutions, independent
investment advisors, brokers, and active traders.
• Low commissions and finance rates.
• Customers in over 100 nations.

Financial Strength
• A member of Interactive Brokers Group LLC (“IBG”)—with consolidated
equity capital that exceeds US $1.6 billion.
• IBG is regularly named one of the top ten program trading firms on the NYSE.
• IBG executes 11% of global volume of exchange traded equity derivatives.
• The Group provides continues, firm quotes for over 400,000 proprietary and
customer trades a day.
• Weiss A Rating “excellent” for Financial Stability.
• The 20th largest US brokerage and trading firm, according to Institutional
Investor

Page 86

Summary - Trade the Market

Avoid the risks of trading individual stocks.

Broad-Based Index Options:

Trade the “Whole Market”

Narrow-Based Index Options:

Trade the “Sectors You Know”

Page 87

Thank You for Attending

Contact us at: www.cboe.com
The Options Institute

1-877-THE-CBOE then press 4,3

Questions: [email protected]
Courses: http://www.cboe.com/LearnCenter/Seminars.asp

CHICAGO BOARD OPTIONS EXCHANGECHICAGO BOARD OPTIONS EXCHANGE

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