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Dr.
Terry F. Allen is the editor of
Terry's Tips (TerrysTips.com).
He is a graduate of Harvard
Business School, and earned his
doctorate in business at the
University of Virginia. Terry Allen
started trading
stock options on the floor of
the CBOE in 1979, and has
successfully traded stock
options for over 20 years. Terry
Allen has averaged over 100
option trades each month, and
has tried every conceivable
option spread strategy. Over
this time, Allen distilled his
focus down to four basic
strategies that consistently
seem to offer the best
risk/reward payoffs.
Terry’s Tips
subscribers learn
the Trading
Rules of all four basic
strategies, and may follow them
in about a dozen actual
portfolio accounts (Terry Allen runs
several portfolio accounts for
each strategy, using different
underlying stocks or indexes,
and risk levels).
-
The
10K Strategy This
strategy attempts to make over 100% (annualized) every
year if your stock stays flat, goes up by any amount,
or falls by less than 5%.
-
The
Gap Reversal This
strategy is based on the phenomenon that when a stock
opens higher than the previous day’s high price (or
lower than the previous day’s low price), a gap occurs
that is most always filled (usually within a few
days). This strategy involves taking a position in
options that will make a quick profit as soon as the
gap is filled.
-
The
Back Spread This
strategy does best when option premiums are low (they
hit a nine-year low in 2004) and when the market is
choppy (as it was in 2004). It makes money if the
market moves up or down, as long as it moves. A loss
generally occurs if it stays absolutely flat.
-
The
Expiration Week Strategy
This strategy is based on the fact that option time
premiums get extremely small in the last few days of
expiration weeks, and volatility tends to be high as
traders adjust their stock and option portfolios on
double and triple witching Fridays.
TerrysTips.com also offers
a free Options Strategy e-mail newsletter.
Terry's Tips Contact
Information
Terry's Tips, Inc. dba Terry's
Tips
Vergennes, VT
info@terrystips.com
The
above description was assembled
using information from the
publisher's site. All registered
or unregistered trademarks
referenced herein are the
property of their respective
owners, and no trademark rights
to the same are claimed. |
