Options & Day Trading- A Crash Course

Options & Day Trading

A Crash Course - by Eli Nichtberger - April 21, 2015

2015 ELIeN Group LLC. All Rights Reserved.

Disclosure / Risk Warning


● The material in this slideshow presentation is for reference and informational purposes only

and is neither an offer nor a solicitation to purchase or sell any security. None of the

information provided in this presentation constitutes a recommendation that any investment

is suitable for any person. Persons viewing these slides should consult with their financial

advisors before making any investment decision

● The risk of loss in trading options contracts can be substantial, and therefore investors should

understand the risks involved in taking leveraged positions and must assume responsibility for

the risks associated with such investments and for their results.

● Any opinions, news, research, analyses, prices, or other information contained on this

presentation are provided as general market commentary for informational purposes only,

and do not constitute investment advice. ELIeN Capital nor the presenter is not liable for any

loss or damage, including without limitation, any loss of profit, which may arise directly or

indirectly from use of or reliance on such information.

Agenda


● About Me● Overview / Background: Trading Terminology● The Basics - What is a stock? An option?● What is an option contract?● What is a Covered Call Contract?● What is Day Trading?● Use of Margin● Technical Analysis● Day trading Examples● Q/A

Eli Nichtberger


Recent Graduate of Baruch CollegeSteven L. Newman R.E. Institute, Zicklin School of BusinessReal Estate Investment Major

Licensed New York Commercial Real Estate Agent Bloom Real Estate Group, LLC

Financial Equity AnalystTech Point Capital, LP

Managing Principal / TraderELIeN Capital Investments, LP

Performance

2009: + 166.42%2010: + 23.12%2011: + 11.85%2012: + 47.3%2013: + 72.6%2014: +121.58%Q1 2015: + 31.10%

Background


Trading Terminology:● Buying a stock

○ AKA going long, betting the security will appreciate in price

● Selling a stock short○ AKA shorting a stock, betting the

security will depreciate in price● Options Contract

○ 100 shares per contract● Technical Analysis

○ Method of forecasting a stock price based on historical price data & trends

The Basics


http://www.investopedia.com/video/play/short-selling/

Call option

Short Selling




http://www.youtube.com/watch?v=_7pGmY58iBw

What is an Option?


An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price.

Call

Put

Contract

Strike Price

Premium

Expiration

In-The-MoneyAt-The-Money

Out-The-Money

Intrinsic Value

Delta

Volatility

Cost Basis

What is a Covered Call?


● Safest form of Option trading● Generates additional income● Limits upside potential● Lower’s underlying securities’ cost-basis

See my write-up on a covered call strategy

An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset

Day Trading


Definition:

Buying and subsequently selling OR

Selling and subsequently buying

a security within one trading DAY.

[Longer trades (days-weeks) are called Swing Trades.]

Candlestick Charts

Level II Order Book

Time & Sales

Market DataCNBC NewsQuarterly Earnings

MarginDT Buying Power

Scalping

Contrarian Trading

Range Trading

News Playing

Trend Following

Margin - DT Buying Power

Technical Analysis


● Candlestick Charts● SMA’s● Trend Lines● Support● Resistance● Channels● Breakout● Bollinger Bands● Fibonacci Ratios● Dead Cat Bounce● RSI Indicator

Technical Analysis


Support / Resistance / Trend Examples

AAPL 6-month trend chart

MCD lkjrekjflerjfklerjlkferDTS 96.47 - 96.30

GOOG DTS 527.45 - 526.12

C DT 50.80 - 50.92

X DT 24.75 - 24.80

M DTS 63.9 - 63.84

X DT 24.32 - 24.38

MCD DTS 96.47 - 96.30

Any Questions?


Extra Slides

MCD DTS 96.47 - 96.30

MCD DTS 96.47 - 96.30

MCD DTS 96.47 - 96.30

ELIeN Capital Investments, LP - Fund Performance Tally (October 2013 - October 2014)

Documents

Options & Day Trading- A Crash Course