SuperTrader is dedicated to teaching you how to trade options in the market.
And not only do you get the theory of trading, you get a practical, hands-on education as well, as you trade through a series of instructive trading ‘games’ to practice your skills.
Here’s a brief synopsis of what you’ll learn over the three days…
1. Options Trading including:
- How to select a broker
- The language of the markets and all the basic terms such as spread, volatility, volume, delta – so you’ll sound like a ‘pro’ from day one
- How the Options Clearing Process works
- How Options are traded, bought, sold and expire
- Who are the Market Makers and how not to be taken advantage of
2. Technical Analysis including:
- Price bars and how they work
- The fundamentals of charting
- Trend analysis
- Volume analysis
- Trend reversals
- Range analysis
- Moving average analysis
3. Options Strategies Selections including:
- Using Calls and Puts to speculate on market movements
- Spreads, Writing Covered Calls and Hedging
- Defensive strategies – buying back, rolling up, rolling out
- Taking a contrary position to your shares to protect them from any fall in the market
- Taking Calls for profit in upward moving shares
- Taking Puts for profit in downward moving shares
- Channel trading
4. Money Management including the Peter Spann set of Trading Rules including:
- Selecting the option series with the most potential for profit
- Selecting shares to trade
- Money management strategies that will protect your trading pool and enhance your profits
- When to enter and exit trades for highest profits and lowest risks
You’ll also understand the risks and take defensive counter-measures. Obviously any investment that produces potentially high returns has to be high risk as well – and options trading undoubtedly has risks.
While it is not possible to quantify all the risks in any trade, at SuperTrader you’ll come to understand many of the risks involved as they are outlined for you. Not only that, you will be taught how to take defensive measures before even entering a trade and you’ll learn what to do if the market moves against your position.
You will also receive defensive strategies that could minimise your trading losses when things don’t go the way you expect (even the very best traders take losses sometimes)! To ensure any losses are kept to a minimum, we suggest you trade with only a fraction of what you have available to invest. You’ll also learn how to recognise when you are about to make a loss, minimise those losses and get out of losing trades.
Many shares move in semi-predictable patterns. The study of these patterns is called technical analysis. By following price movements of the shares, you can form a view of the most likely movement of the share from that point on. Of course it is impossible to precisely predict the movement of the share market but the more skilled you get the more likely you are able to guesstimate the next movement of the share price. At SuperTrader you are introduced to this fascinating subject and you learn basic predictive tools that will enable you to form a view of potential market movements (of course no method is 100% fool-proof, but understanding and using this analysis can put you way in front).
Technical Analysis will then form the basis for your trading decisions. By looking at charts that map share price movements you are then able to formulate a strategy to deal with potential market movements. If the market looks like going down you might consider buying ‘puts’, writing calls, short selling or getting out of a share position. If the share price looks like going up you could buy calls, buy shares or use one of the higher risk strategies like writing puts.While the terminology might mean nothing to you now, by the end of SuperTrader you will know what they all mean and when it is appropriate to use them.
Peters’ strategies rely heavily on the use of technical analysis to enable you to make the most informed choices. So in order to trade professionally, you will need the proper charting software. But…
Forget expensive computer ‘systems’ At SuperTrader you will be taught to trade like a professional. You won’t leave your destiny to a computer program that never seems to produce accurate buy and sell signals. You’ll learn how to interpret market movements, placing your own trades and control your own destiny.
The strategies you will learn include:
1. Buying and selling Calls and Puts
There are two types of Options; Calls and Puts. Calls generally pay off when the share price goes up. Puts generally pay off when the share price goes down. By using technical analysis we form a view which direction the share price is likely to move in the short term. You could then buy a call if you think it’s going to go up, or a put if you think it’s going to go down.
Options go up and down in price in line with the share, but can move much faster than the share price. If we get our analysis right and the share price moves in the direction we want it to, the profits can be rewarding (10%, 20%, 30% and more are not uncommon profits in a few days or weeks in option trades).
Of course this fast movement is also where losses can come from, so you want to make sure you get it right more often then you get it wrong. This is the edge that SuperTrader can give you. The amazing thing about Options is you can also sell them (without ever owning them). Like anything you sell, in return you receive a payment, called a premium.
This strategy is what attracts many people to option trading because of the potentially attractive cash flow possibilities.
At first this may seem hard to believe and too good to be true, but not only is it true it can be VERY lucrative as well, as long as you understand and manage the risks associated. Our team detail their favourite strategies from the low risk to the very high risk so you can decide if and which are appropriate for you.
2. Insurance for your Shares – The Role of Hedging.
Virtually everybody would agree that to not insure a major asset such as a house or a car would be foolish and yet many of the same people enter the share market with absolutely no protection for their shares at all.
Since the beginning of options trading a form of ‘insurance for shares’ has been available through hedging. One form of hedging is the use of ‘Put’ options that move in line with the share price. Because ‘Puts’ pay off when the share price goes down if you select the correct one, they will move in line with the share.
For example, say you bought Telstra shares in July 2010 when they were $3.20 each. At the same time as buying your shares, you could have taken a hedge that would have cost you about 30c (this is your insurance). At the end of September 2010, the share had fallen to $2.65. The hedge would have allowed you to sell your shares for $3.20, saving you a loss of $0.55 per share, for the expense of 30c. Alternatively, if you wanted to hold your Telstra share you could have sold the put options for approximately $0.60, replacing most of your lost capital!
Most people have never heard of this amazing strategy, which means you can invest in the share market with limited down side (the only risk you are taking is the cost of the hedge, which, as you’ve seen is a fraction of the risk in owning the shares). You will learn three levels of hedging in SuperTrader that many experienced investors can use to protect their capital from downturns.
3. Want to make money when the market is going down?
Let’s face it most people are scared of market crashes… Options Traders practically LIVE for them!
Markets often move so far and so quickly when they fall that you can usually make more money when they are going down if you know the right strategies. You see, the market usually goes up slowly, so you have to be patient and wait for returns, but when it goes down it frequently goes down fast, so the returns multiply and the time is decreased.
In SuperTrader you will be taught multiple strategies to deploy during times of falling markets. And that’s the great thing about trading – your don’t care which way the market goes because you can profit from any directional movement. Stop being scared of downward movements and start to profit from them.
Minimising your risks = maximising your profit
Options Trading is like driving a high performance sports car. In the right hands it can be enjoyable, fun and rewarding. In the wrong hands it can be down right dangerous. Peter encourages responsible trading and teaches thorough and intelligent principles of money management – then it is up to you to use them. If you do, you will maximise any potential profits and minimise any potential losses.
If you don’t, you could lose 100% of the funds you have invested in a trade. Some of our graduates have lost money and stopped trading forever (and are better off for it). Some have gone on to make good profits and are still trading today. It is up to you to decide to follow Peter’s advice and profit, or risk going it alone in the market and make losses.
SuperTrader offers independent investors a viable way of learning about many possible options strategies that they could incorporate into an overall investment plan.
Options trading is for people who are prepared to risk a small amount of their available capital for potentially higher returns. It is a good vehicle for boosting returns for those people prepared to learn, to develop and use a trading system and trade using basic and intelligent money management principles.
And you’ll be ‘hands-on’ from day one
There is no better way to learn than by doing it yourself – and you will be straight into it. From day one of SuperTrader you will start ‘paper trading’ (executing imaginary trades) in a simulated environment that will teach you exactly how the market behaves.
Each trading simulation emulates real situations where traders have made and lost money.
You’ll be given the opportunity to test your newly acquired skills in competition with other seminar delegates that hone your skills and abilities so you have a better understanding of everything involved.
For many people this is a critical aspect of the seminar. They get to apply their theoretical learning and make mistakes before entering the market. They can then take the opportunity to ask questions and seek clarification while they have the benefit of the knowledge of successful Options Traders.
This gives many people the confidence to try again in the next game and succeed where they may have stopped altogether if they had been trading a real share with real money.
Of course the only way you can really test your skill and start making profits is actually live in the market but this ‘soft start’ has convinced many people they can be successful.
