How to Improve Your Option Buying Techniques by Larry McMillian
Larry G. McMillian
How to Improve Your Option Buying Techniques
Description: Many traders are successful at trading stocks, but have
difficulty translating that to a successful option trading strategy. In
this seminar, we''ll show you how overcome those difficulties. We''ll
discuss which option to buy which striking price and expiration
month. Examples will show how to use the Black-Scholes model to reasonable
assess the probabilities and possibilities for your trade. Furthermore,
we''ll discuss risk management how MANY options to buy.
Finally, we discuss one application of these techniques in a
momentum trading strategy, using option and stock volume as the main
drivers of which stock to .
Lawrence G. McMillan is the author of Options As a Strategic Investment, the best-selling work on stock and index options strategies, which has sold over 200,000 copies. The fourth edition of this work was released in March, 2002. In addition, he has written two other books, McMillan On Options 2nd edition, 2004 and Profit With Options and co-authored another, New Insights On Covered Call Writing. He currently authors a unique daily advisory service – Daily Volume Alerts – which s short-term stock trades by looking for unusual increases in equity option volume. He also edits and publishes "The Option Strategist", a derivative products newsletter covering equity, index, and futures options, as well as "The Daily Strategist", covering much the same strategies but on a daily basis. In these capacities, he is the President of McMillan Analysis Corporation, which he founded in 1991. He has spoken on option strategies at many seminars and colloquiums in the United States, Canada, and Europe. He also writes frequently and is quoted in publications such as Barron’s, Technical Analysis of Stocks and Commodities, Data Broadcasting’s “Exchange” magazine, Futures Magazine, theStreet.com, and Active Trader Magazine. In addition, he is the Portfolio Manager of The Hardel Volatility Arbitrage Fund a hedge fund, he trades his own account actively, and he manages option-oriented accounts for certain individuals.
Prior to founding his own firm, Mr. McMillan was a proprietary trader at two major brokerage firms. He began his Wall Street career as the retail option strategist at Thomson McKinnon Securities, Inc., from 1976 to 1980, and then traded the firm''s proprietary account beginning in 1980. From 1982 to 1989, he was a Senior Vice President in charge of the Equity Arbitrage Department. Following that, he was in charge of the Proprietary Option Trading Department at Prudential-Bache Securities in 1989-90. In those positions, he traded the firm''s own money – primarily in advanced option strategies and risk arbitrage at Thomson McKinnon, and primarily in convertible Euro-bonds and Japanese warrant arbitrage at Prudential.
He initially worked for Bell Telephone Laboratories in Whippany, NJ, from 1972 to 1976. He also published a weekly newsletter, entitled "Hedged Option Strategies" from 1974 to 1976.
Mr. McMillan holds a B.S. degree in mathematics from Purdue University 1968 and an M.S. in applied mathematics and computer science from the University of Colorado 1972.
McMillan Analysis Corp., PO Box 1323, Morristown, NJ 07962
web site: www.optionstrategist.com