Interactive Brokers Webcast WeeklysSM Options On
Interactive Brokers WebcastWeeklysSM Options on Leveragedand Inverse Exchange TradedProductsMay 21, 2014Presented by Russell Rhoads, CFA
DisclosureOptions involve risks and are not suitable for all investors. Prior to buying or selling an option, an investormust receive a copy of Characteristics and Risks of Standardized Options. Copies are available from yourbroker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation at www.theocc.com. Theinformation in this presentation is provided solely for general education and information purposes. Nostatement within this presentation should be construed as a recommendation to buy or sell a security or toprovide investment advice. Any strategies discussed, including examples using actual securities price data,are strictly for illustrative and educational purposes only. In order to simplify the computations,commissions, fees, margin interest and taxes have not been included in the examples used in thispresentation. These costs will impact the outcome of all transactions and must be considered prior toentering into any transactions. Multiple leg strategies involve multiple commission charges. Investors shouldconsult with their tax advisors to determine how the profit and loss on any particular option strategy will betaxed. Past performance does not guarantee future results. Supporting documentation for any claims,comparisons, statistics or other technical data in this presentation is available from CBOE upon request.CBOE, Chicago Board Options Exchange and Execute Success are registered trademarks and The OptionsInstitute and Weeklys are service marks of Chicago Board Options Exchange, Incorporated (CBOE). All othertrademarks and service marks are the property of their respective owners.Direxion and Proshares financial products are not sponsored, endorsed, sold or promoted by CBOE andCBOE makes no representation regarding the advisability of investing in such products. An investor shouldconsider the investment objectives, risks, charges, and expenses of these products carefully beforeinvesting. This and other information about these products, including prospectuses, can be found atwww.direxionfunds.com and http://www.proshares.com. CBOE is not affiliated with Interactive Brokers,Direxion or Proshares. This presentation should not be construed as an endorsement or an indication byCBOE of the value of any non-CBOE product or service described in this presentation.Copyright 2014 CBOE. All rights reserved.THE OPTIONS INSTITUTE at CBOE2
Weeklys Options –Leveraged and Inverse ETPsOutlineWeeklys OptionsLeveraged ETPsInverse ETPsOption Price BehaviorTHE OPTIONS INSTITUTE at CBOE3
Weeklys Options –Leveraged and Inverse ETPsOverviewWeeklys options on individual stocks and exchange tradedproducts were introduced in the summer of 2010The number of equity securities that have short dated optionsavailable has increased to well over 350 namesSerial options followed shortly afterward and a majority ofstocks and exchange traded funds now have options expiringevery week for five consecutive weeksThere are a handful of leveraged and inverse ETPs with shortdated options available for tradingTHE OPTIONS INSTITUTE at CBOE4
Weeklys Options–Leveraged and Inverse ETPsLeveraged ETPsAs of 5/8/2014 –AGQFASNUGTSSOTNAUVXYProShares Ultra Silver (2x)Direxion Daily Financial Bull 3X SharesDirexion Daily Gold Miners Bull 3x SharesProShares Ultra S&P 500 (2x)Direxion Daily Small Cap Bull 3x SharesProshares Ultra VIX Short-Term Futures ETF (2x)These funds are designed to match the daily performance of astrategy or specific index.THE OPTIONS INSTITUTE at CBOE5
Weeklys Options –Leveraged and Inverse ETPsLeveraged Performance2013 –TickerAGQFASNUGTSSOTNAUVXYETPIndexPerformance ce: BloombergTHE OPTIONS INSTITUTE at CBOE6
Weeklys Options –Leveraged and Inverse ETPsLeveraged PerformanceFirst Four Months 2014 –TickerAGQFASNUGTSSOTNAUVXYETPIndexPerformance %0.29%42.05%3.85%-9.48%-10.71%Source: BloombergTHE OPTIONS INSTITUTE at CBOE7
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceAGQ vs. Index – Jan 2009 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE8
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceFAS vs. Index – Jan 2009 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE9
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceNUGT vs. Index – Jan 2011 – April 2014MaximumMinimumAbsolute 2%Source: BloombergTHE OPTIONS INSTITUTE at CBOE10
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceSSO vs. Index – Jan 2007 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE11
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceTNA vs. Index – Jan 2008 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE12
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceUVXY vs. Index – Jan 2012 – April 2014MaximumMinimumAbsolute 15%Source: BloombergTHE OPTIONS INSTITUTE at CBOE13
Weeklys Options –Leveraged and Inverse ETPsInverse ETPsAs of 5/8/2014 –DUSTFAZSCOSDSSVXYTBTTZADirexion Daily Gold Miners Bear 3x SharesDirexion Daily Financial Bear 3x SharesProShares UltraShort DJ-UBS Crude Oil (2x)ProShares UltraShort S&P 500 (2x)ProShares Short VIX Short-Term Futures ETF (1x)ProShares UltraShort 20 Year Treasury (2x)Direxion Daily Small Cap Bear 3x SharesThese funds are designed to match the inverse daily performanceof a strategy or specific index.THE OPTIONS INSTITUTE at CBOE14
Weeklys Options –Leveraged and Inverse ETPsInverse Performance2013 –2013DUSTFAZSCOSDSSVXYTBTTZAETPIndexPerformance 31.89%-111.01%Source: BloombergTHE OPTIONS INSTITUTE at CBOE15
Weeklys Options –Leveraged and Inverse ETPsInverse PerformanceFirst Four Months 2014 –2014DUSTFAZSCOSDSSVXYTBTTZAETPIndexPerformance rce: BloombergTHE OPTIONS INSTITUTE at CBOE16
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceDUST vs. Index – Jan 2011 – April 2014MaximumMinimumAbsolute 62%Source: BloombergTHE OPTIONS INSTITUTE at CBOE17
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceFAZ vs. Index – Jan 2009 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE18
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceSCO vs. Index – Jan 2008 – April 2014MaximumMinimumAbsolute Source: BloombergTHE OPTIONS INSTITUTE at CBOE19
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceSDS vs. Index – Jan 2007 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE20
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceSVXY vs. Index – Jan 2012 – April 2014MaximumMinimumAbsolute 5%Source: BloombergTHE OPTIONS INSTITUTE at CBOE21
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceTBT vs. Index – Jan 2008 – April 2014MaximumMinimumAbsolute ource: BloombergTHE OPTIONS INSTITUTE at CBOE22
Weeklys Options –Leveraged and Inverse ETPsRelative Weekly PerformanceTZA vs. Index – Jan 2008 – April 2014MaximumMinimumAbsolute %Source: BloombergTHE OPTIONS INSTITUTE at CBOE23
Weeklys Options –Leveraged and Inverse ETPsLong – Short urce: BloombergTHE OPTIONS INSTITUTE at CBOE24
Weeklys Options –Leveraged and Inverse ETPsRelative Option PricingIWM @ 110.035 Day IWM 110 Call @ 1.145 Day IWM 110 Put @ 1.15BE about /- 2.08%TZA @ 18.015 Day TZA 18 Call @ 0.545 Day TZA 18 Put @ 0.55BE about /- 6.00%THE OPTIONS INSTITUTE at CBOE25
Weeklys Options –Leveraged and Inverse ETPsRelative Option PricingTLT @ 112.087 Day TLT 112 Call @ 0.767 Day TLT 112 Put @ 0.80BE about /- 1.39%TBT @ 63.137 Day TBT 63 Call @ 0.867 Day TBT 63 Put @ 0.77BE about /- 2.58%THE OPTIONS INSTITUTE at CBOE26
Weeklys Options –Leveraged and Inverse ETPsResourcesIssuer Websites –Direxion – www.direxionfunds.comProShares – www.proshares.comOptions Disclosure Document –http://www.cboe.com/resources/intro.aspxTHE OPTIONS INSTITUTE at CBOE27
Weeklys Options –Leveraged and Inverse ETPsLinks / ContactNew Weeklys ListWednesdays Mid-Daywww.cboe.com/weeklysNext Week in Weeklys BlogFriday / Saturday Each Weekwww.cboeoptionshub.comContact InfoTwitter - @russellrhoadsrhoads@cboe.comTHE OPTIONS INSTITUTE at CBOE28
stocks and exchange traded funds now have options expiring . There are a handful of leveraged and inverse ETPs with short dated options available for trading . THE OPTIONS INSTITUTE at CBOE 5 Weeklys Options– Leveraged and Inverse ETPs . Leveraged ETPs . . IWM @ 110.03 . 5 Day IWM 110 Call @ 1.14 .
Interactive Brokers Webcast September 2016 . CBOE OPTIONS INSTITUTE 2 . CBOE , Chicago Board Options Exchange and VIX are registered trademarks and CBOE Options Institute and Weeklys are service marks of Chicago Board Options . 7 Calendar Days to Expiration . Price . 7 Day Theta : I
Five Star Rating System Star ratings, created for brokers, by brokers The Insurance Times Five Star Rating Reports are the first at-a-glance guide to insurer, MGA and software platform experience, created for brokers, by brokers. We offer 4 key research projects through the course of the year:
ONGOING COMPLIANCE. 1. GENERAL REQUIREMENTS FOR BROKERS 2. HOUSEHOLD GOODS BROKERS REQUIREMENTS. 3. CONSEQUENCES OF NON-COMPLIANCE. 3.1. What is a freight broker bond claim? 3.2. How do freight broker claims occur? 3.3. How can brokers stay compliant and avoid claims? CONCLUSION. CONTENTS. 04 06. 06 07. 13 16. 08 13. 16 24.
considered a recommendation by Interactive Brokers and its affiliates, nor a solicitation or an offer to buy or sell options, stocks, and ETFs. Trade Ideas is not affiliated with Interactive . ALGORITHMIC TRADING: ELEVATED IDEA CONCEPTION IDEA MODELING IDEA TESTING OPTIMIZATION FORWARD TESTING PUTTING MONEY TO WORK CIRCLING BACK SEAN .
Execution fees for US options contracts with Interactive Brokers are 0.70c per contract for non-directed orders and 1.00 per contract for directed orders. Where multi- leg strategies (including spreads) are discussed, the execution fee is per leg and therefore multiple . Began his trading career at 19 years old in London .
CBOE and Chicago Board Options Exchange are registered . AAPL as of August 2, 2017 . Weeklys in Blue . 8/4/2017 . 12/15/2017 . 8/11/2017 . 1/19/2018 : 8/18/2017 . 2/16/2018 : 8/25/2017 . . Time decay - ATM time decay accelerates when expiration approaches Lack of time value - ITM options often have very little time value .
CBOE OPTIONS INSTITUTE. 20 . Weeklys and Iron Condors . Spreads and Time Decay . Short dated options offer a ton of flexibility in addition to more time decay benefits Traders may actually pin point their timing on trades using various expiration dates Traders may also have more opportunities to execute trades around different outlooks
Bartle - Introduction to Real Analysis - Chapter 8 Solutions Section 8.1 Problem 8.1-2. Show that lim(nx (1 n2x2)) 0 for all x2R. Solution: For x 0, we have lim(nx (1 n2x2)) lim(0 1) 0, so f(0) 0. For x 2Rnf0g, observe that 0 nx (nx2) 1 (nx). By the Squeeze Theorem, lim(nx (1 n 2x)) 0. Therefore, f(x) 0 for all x2R. Problem 8.1-3. Evaluate lim(nx (1 nx .
