Option Trading – Thinking “Outside The Box”

Wouldn't it be great if we could buy an option with five months left until expiration and sell an option with 2 months left until expiration for the same price? You couldn't lose. Well we can't. I love options spreads so much I realized something very important.

We can buy a spread that has a lot of time value left at almost the same price as we can sell one with less time value left. The reason really opened my eyes and gave me new insight into options. Here is what I came to realize.

I started comparing how expensive options were in relation to the other strike prices in the same month and to the other months. I wanted to know based on the price per day which options were more expensive.

The first 1 or 2 option months, as everyone knows loses time value quickly. The at the money strike prices are very expensive compared to the out of the money strike prices. Since there is not that much time left, how much can they charge for an out of the money option? Not much.

The next several months, the opposite is true. Compared to each other, the strikes that are closer to the money are cheaper in terms of price per day than the options further out of the money. Let me explain it another way using the S&P market.

6 days left at the money option cost 12 points
6 days left out of the money option cost 2 points

70 days left at the money option cost 43 points
70 days left out of the money option cost 29 points

There is more than 10X the time left but the 70 day at the money option (43 points) is only less than 4X the price than the 6 day at the money option (12 points).

The 70 day out of the money option (29 points) is almost 15X the cost of the 6 day out of the money option (2 points) but only has 10X the time value. We will buy the cheaper per day options and sell the more expensive per day ones.

Sell 6 day at the money and sell 70 day out of the money. Buy 6 day out of the money and buy 70 day at the money. This will be done for a 4 point debit. We are now buying a spread that has 10X more time value than the one we are selling and are only paying 4 points for it.

When the 6 day options expire we can sell the next month to take in more premium, still keeping the 70 day option spread.

What goes up, must come down! We have all heard this before in reference to the laws of Gravity. We have laws in the commodity markets as well. What comes down, must go up! The greatest traders of our time like Warren Buffet know this. He is perhaps the greatest Stock trader ever. He had never traded commodities until a few years ago. He bought silver in the futures market. When the market went even lower he bought more.

The “smart money”, commercials will not be scared into selling when a market they have purchased drops even further. They know better than anyone that a commodity has real value and will always be worth something.

There is a famous book, “You Can't Lose Trading Commodities”. The author buys commodities and then just waits for the market to go higher. He would purchase more as the market fell.

You need a big bankroll for this. Personally I know corn won't go to $1.00 but what if it did? I want to minimize the risk in case I want to end the trade.

I started trading the Soy Complex this way several years ago. Not with options. Strictly futures. I bought what was similar to a crush spread. I increased the contracts as the market went against me until the spread rebounded a little. Since I increased the contracts I didn't need the market to come back to where I started. It only had to rebound to the next level.

Black Jack players did this until Casinos caught on and put limits on bets. It is a known fact that futures traders make good gamblers and professional gamblers make good futures traders. I am against gambling but even gambling done with a system is not really gambling.

These card players would bet something like this: $5 lose, $10 lose, $20 lose, $40 lose, $80 win. The losses add up to $75. They would win $80, so the profit is $5. Not a lot, but they would do this all day. Black Jack is just under 50% probability for the player.

The problem is there is a slight chance that you could lose 40 times in a row. Now with Commodities we have a 50% probability and we won't lose 50 times in a row because the market can't go below zero.

Now before I go any further, I need to tell you that I am not recommending you double down on your trades. What you can find are markets that are near their lows where you can do a small scale trade. Spreads offer even better opportunities. They have a closer range (high to low).

By now you can see we only use this to go long a market since we can never be sure how much a market can go higher. First we need to find a market that is low already so we won't have to wait that long and also so there will be less capital needed.

I prefer to trade this using options. There are many ways to do this. You could buy an option in a market like soybeans and choose how many cents the market will drop before you buy more. The problem is, an option is a wasting asset. The Theta (time decay) would cause you to lose money.

I use spreads so I am not paying for time decay. I will probably sell more Theta than I buy, so if the market does nothing I will make money just on time decay.


Learn Stock Trading Tips Here

Wholesale Jewelry - Know How to Get Your Money's Worth When Buying Wholesale Silver Jewelry

When buying wholesale silver jewelries that you will resell online, you may need to take at least a crash course on jewelry appraising or have someone with experience by your side to help you obtain the right quality of silver jewelries without being shortchanged.

There are quite a number of considerations that a retailer should learn when ascertaining the value of silver jewelries. One of these has to do with finishing. Majority of sterling silver jewelries you will find are plated since over time silver tends to turn yellow and plating it gives it a shield of protection. The material used for plating may greatly affect the final price of the jewelry. If the plating used is rhodium which is a precious metal and much more expensive than sterling silver, the value of the jewelry will be much more expensive than those that were plated in non-precious metals like nickel. Most Italian sterling silver is plated in nickel.

Many prefer rhodium because it makes the silver very resistant to tarnishing. To reduce cost, many manufacturers would first give the silver a coating of copper before finally plating it in rhodium. However, silver with copper may turn green when worn by people with a skin type that may cause a reaction. Thus, it is good to ask your supplier whether the jewelry you are about to buy is directly plated in rhodium or if it contains another metal other than rhodium and silver. There are sterling silver jewelries that are not plated at all but instead they are polished in a machine. The process of polishing silver does not entail any raw material cost and jewelries finished this way are sometimes less expensive than plated ones. Those with an antique finish have been dipped in a chemical that has the ability to oxidize silver and then they are polished. This kind of finishing should not cost more than the regular high polished sterling silver.

Also to be considered when buying silver jewelries is the stone cutting. Many silver jewelries may include stones as part of the jewelries' design. Stones, whether natural or synthetic, may cost more or less depending on the stone cutting. For example, stones in princess cut will cost more than round cut. However, the emerald cut or baguette cut would cost more than the princess cut.

The manner of stone setting also dictates the final cost of the silver jewelry. An inexpensive way to set stones on silver is through wax setting. Stones set in this manner are arranged on the mold prior to pouring of hot melted silver. The whole piece including the stones is cast out from the mold. This method of setting actually reduces the quality of the stones due to the heated silver and the quality of setting is not consistent.
In contrast, hand-setting the stones produces better quality silver jewelries but then they are much more expensive because their production is more labor intensive.

Lastly, the process by which the metal part of the jewelry is produced largely determines the cost of the finished jewelry. Some silver jewelries are merely cut out from silver sheets which is less expensive than the traditional way of casting silver on a mold. The latter is more costly because the silver metal after casting, still goes through a series of steps like polishing and filing making its production more laborious and thus more expensive.

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Common Hearing Aid Myths

MYTH: Hearing aids will cure hearing loss or restore a hearing impaired individual’s hearing to normal.

TRUTH: No hearing aid will ever allow a hearing impaired individual to have normal hearing. A hearing aid just cannot provide what the ear and its intricate working of nerves can. What it can do is amplify sounds so that those wearing them can benefit from and enjoy a wide variety of listening situations. Hearing better helps one to respond appropriately thus improving communication skills.

MYTH: Hearing aids will resolve all of a hearing impaired individual’s communication difficulties.

TRUTH: This is impossible, although hearing aids go a long way in helping a hearing impaired individual with their communication skills. Hearing aid wearers often still have problems following conversations when background noise is present or in noisy public settings, thus inhibiting their ability to communicate effectively in those situations.

MYTH: Hearing aids will destroy residual hearing.

TRUTH: Since hearing aids are prescribed according to an individual wearer’s specific hearing loss, it would be a rare occurrence for a hearing aid to cause further damage to a person’s hearing. There are several things a hearing impaired individual can do to further reduce the possibility of damage caused by hearing aids. They must be well maintained, worn correctly and well fitted.

MYTH: Smaller hearing aids have better technology.

TRUTH: Both larger hearing aids and smaller ones are equipped with cutting edge technology. The two most common types of hearing aids are behind the ear (BTE) and completely in the canal (CIC) hearing aids. Whether or not an individual will be able to wear a hearing aid that is nearly invisible to a casual observer, depends on the type of hearing impairment they have. The hearing aid that is most appropriate for one person’s degree of impairment or listening needs, may not necessarily be best suited to another person.

MYTH: Hearing aids are not absolutely necessary for relatively minor hearing losses.

TRUTH: It is not advisable to put off obtaining hearing aids until hearing loss becomes a bigger problem. Over time the risk of permanent sound distortion increases. In this case, even when hearing aids amplify the volume of the spoken word it can still sound garbled.

MYTH: Hearing aids will not be effective for some types of hearing losses.

TRUTH: Generations ago people with certain types of hearing losses, such as high frequency, were told there was little or no help out there for them. With advances in hearing aid technology this is no longer true. Hearing aids are now effective for at least 95 % of hearing impaired individuals.

MYTH: Babies can’t be fitted with hearing aids.

TRUTH: Actually infants as young as a month old can be fitted with hearing aids. With the increase in hearing tests for at risk newborns, hearing impairments are being detected earlier then ever and the world of hearing aid research and technology is doing its best to keep pace.

MYTH: It doesn’t matter where hearing aids are purchased.

TRUTH: While buying hearing aids through mail order or off the internet may be less expensive, it is not necessarily advisable. By purchasing through these venues, a hearing aid consumer may be giving up the quality of care they will get by working with an audiologist. This includes things such as a qualified hearing evaluation, professional recommendations as to the most appropriate type of hearing aid, expert instruction regarding proper hearing aid usage, follow up care, etc.



Hearing Aid Styles

How To Clean Hearing Aids

Alcoholism and Your Family

Alcoholism is a serious disease which affects the lives of millions of people across America. There are a number of reasons why a person can develop an alcohol addiction, but there is no definitive answer for everyone. The only concrete fact about alcoholism is that it is a serious disease that is often overlooked and ignored by society.

What Is Alcoholism?

Frequently, the terms "alcohol abuse" is used synonymously with "alcoholism;" however, there are distinct differences. Alcohol abuse is considered a temporary or voluntary decision to consume alcohol in dangerous quantities, or with reckless intentions; however, there is no chemical dependency motivating your decisions. Examples of alcohol abuse include: binge drinking, drinking until blacking out or vomiting, or using alcohol as an escape.

Although frequent alcohol abuse can develop into alcoholism, that is not always the result. Alcoholism differs from alcohol abuse in that it consists of four unique behavioral and psychological components:

• Craving-Alcoholics suffer from a severe yearning for alcohol. Frequently, habitual drinking disguises their cravings; however, if they are placed in a situation where alcohol is absent they will oftentimes seek it out, regardless of appropriateness or consideration of consequences.

• Impaired Control-Once an alcoholic begins drinking, it is extremely difficult for them to stop. Typically, they will drink until one of two things happen: 1) their source of alcohol runs out, or 2) they go to bed. These binge drinking episodes can greatly affect one's quality of life.

• Withdrawal-If an alcoholic attempts to stop drinking cold turkey, they experience withdrawal symptoms, in the same way that a smoker or drug addict experienced withdrawals. Once chemically dependent on alcohol, quitting abruptly can even cause serious trauma to the body, sometimes resulting in death.

• Tolerance-As a result of their habitual drinking, alcoholics develop an extraordinarily high tolerance. As time progresses, their ability to consume large amounts of alcohol increases, consequently, strengthening their body's dependency.

Alcoholism and the Family

According to statistics gathered from across the country, alcoholism is a serious problem or families across the country.

• Alcoholism affects more than 50% of American families

• 3 million Americans over 60 abuse alcohol

• Approximately 6.6 million minors in the US live with an alcoholic parent

• 40% of alcoholism is genetic, and the other 60% stems from external circumstances

For more information about alcoholism and alcohol related crimes, contact Rhode Island DUI lawyer James Powderly.

Joseph Devine

Living with an alcoholic is very taxing on the non-drinker because it is so all-consuming and stressful, and wears tremendously on your self esteem. Visit http://www.livingwithanalcoholic.org for some dos and don'ts

Bonsai Trees are Both Plants and Works of Art

Bonsai is the Japanese word for tray gardening, although the origins of bonsai can traced back to China. Bonsai trees and plants are kept in minimal size, by trimming and pruning, for aesthetical purposes. The main idea behind the bonsai trees is to keep their look natural, while never showing that there was human intervention. Despite the fact that bonsai trees are grown in containers, pots or planters, they are by no means less healthy than a tree growing in the wild. The bonsai is kept small, by combining pot confinement, and crown and root pruning. The bonsai care requires dedication, creativeness, love for plants and patience. Bonsai trees can be grown indoors for a decorative appeal in a living room or an office, or they can be left in the garden to give a more exotic look. The most widely used tree for bonsai is the maple. The maple trees are perfect for beginners in the art of bonsai. But still, they are amongst the most incredible-looking bonsai around. The care for a bonsai maple tree is not that difficult, all it needs is the right amount of sun and water.

The main method of limiting the size of a bonsai is pruning, which is the careful removal of parts of the tree in order to shape it and limit its size. Pruning is critical for the development of the bonsai. It is the most important method, as it allows you to control the growth of the bonsai and shape it in the form and appearance that you want. This is the art of the bonsai tree, with the main idea of recreating the nature in a miniature form. The frequency of bonsai pruning, mostly depends on the bonsai's size and age. If large branches have to be removed from the bonsai, it is best to remove them in the peak growing season of the bonsai, which starts from the early spring until mid summer. Concave cutters must be used, when removing those large branches from the bonsai.

Shaping the bonsai is achieved through several precise techniques. In order to maintain the small size of the tree, one needs to a apply a consistent regimen of pruning the leaves and the branches. Wiring the bonsai can also be used as a method of shaping it, as copper or aluminimum wire is wrapped around the branches, holding it in place until the bonsai can maintain this shape without the wires. But this type of shaping is not suitable for all bonsai tree, especially those that are too stiff or too brittle.

Grow a bonsai from Tree seeds and discover the japanese art.
Laern how the chinese zelkova bonsai are beautifull bonsai tree specimen.