IN THIS ISSUE
Thomas DeMark & Thomas DeMark, Jr.
Options Straddles and Combinations
Lee Gettess' Market Sense
A Trader's Guide to Statistcal Analysis
The Free Trade Part II
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THOMAS DEMARK & THOMAS DEMARK, JR.
 
 
  
Thomas DeMark has spent 28 years in the investment business.  DeMark has been a consultant to large hedge fund and mutual fund managers, and his many clients have included George Soros, Paul Tudor Jones, Union Carbide, IBM and many others.  The featured speaker at numerous conferences, he has also written several articles for financial magazines and two successful books on market timing, The New Science of Technical Analysis and New Market Timing Techniques.
 
 
Thomas DeMark, Jr.
traded his own account on the floor of the Chicago Board of Trade and currently is a trader for a large, successful hedge fund.  He has conducted numerous seminars on his proprietary trading indicators throughout the Far East, Europe and the United States.  He has also coauthored a series of twelve featured articles of Futures magazine.

 
 
OUR AUTHOR TEAM
 
Adam Oliensis 
Andy Chambers
Brian Schad 
Chuck Hughes
Darrell Jobman
Dave Caplan
Don Fishback
Ellie Taft
Gary Wagner
George Angell
George Fontanills
Glenn Neely
Jack Schwager
Jea Yu 
Jeff Horovitz
Joe Duffy
Jon Najarian
John Weston
Kathy Lien
Ken W. Chow
Larry Connors
Larry Williams
Lawrence McMillan
Lee Gettess
Mark Fisher
Murray Ruggiero
Paul Forchione
Peter McKenna
Ray Frazier
Russell Sands
Scott Krieger
Ted Tesser
Tom DeMark
Tony Catalfamo
Welles Wilder
August 25, 2010     
 

This week's edition of Inside Trading offers an article from Tom Demark and Tom Demark Jr. on using straddles and combinations when trading options.

Next, Lee Gettess brings us his video newsletter on what he expects from the S&P and bond for the coming week.

Murray Ruggiero provides the next article explaining statistical concepts every trader must know before attempting to build their own trading system.

Last, the Editors at TradeWins Publishing continue their discussion on the "free trade".

Enjoy!
 
Adrienne LaVigne
Options Straddles and Combinations
 
By: Thomas Demark & Thomas Demark, Jr.
 
The following is an excerpt from Demark on Day Trading Options
 

Options straddles and combinations are a unique way of capitalizing on market activity or market consolidation.  Straddles and combinations can be utilized to make money if a trader feels the market will experience a move, but is not certain as to the direction of that move.  They can also be utilized to make money if one expects the market to stabilize or consolidate over a specific period of time.  Straddles and combinations are very similar.  A straddle involves the simultaneous purchase of a call and a put, or the simultaneous sale of a call and a put, of the same security, strike price, and expiration date; while a combination involves simultaneous sale of a call and a put, of the same security, but with different strike prices and different expiration dates, or both different strike prices and different expiration dates.  Unlike spreads, where four possible positions can be taken, there are only two sides to straddles and combinations, long and short.

 
Lee Gettess' Market Sense
 
Lee Gettess is a top trader who is excited to bring you his new video newsletter. Each week, Lee will share his predictions on what he anticipates from the bond and S&P markets.
 

A Trader's Guide to Statistical Analysis

 
By: Murray Ruggiero
 

The following is an excerpt from Murray Ruggiero's Cybernetic Trading Strategies 

 
A trader does not have to be a statistical genius, but he or she should have a basic understanding of statistics that are descriptive of various properties of the data being analyzed.  This article gives an overview of some of the most important statistical concepts that traders should understand. 
 
The Free Trade Part II
 
By: Editors of TradeWins Publishing 
 

Option purchases and Vertical Debit Spreads - The strategies, and converting to "Free Trades".

In this article, we'll discuss the option purchase and vertical debit spread strategies, and ways to convert those positions to "Free Trades" under favorable market conditions.

Option purchases.

For many traders, the first introduction to the world of options is the simple concept of buying a call or put. Depending on the market opinion, traders will buy a call to benefit from a rise in the underlying market, or buy a put to benefit from a decline (not considering effects of time decay or changes in implied volatility). If your conviction about market direction is strong, you might be purchasing in-the-money options, which will have a high "delta", and gain a high percentage of what the underlying futures would gain. To take a lighter position, out-of-the-money options might be used which will have a lower delta, and less risk if the market doesn't go your way. And in the right situation when you think a good move could be forthcoming, but you're uncertain about direction, and implied volatility is cheap, you can buy both puts and calls by purchasing long straddles (same strike options) or strangles (different strikes).

World-Renowned Analyst Tom DeMark Reveals His 18 Most Powerful Indicators. . .Including New Ones Just For Options!

 

Tom DeMark is known 'round the world for his expertise in developing Demark DT Optionstechnical indicators that spot developing trends and high-profit opportunities. Today, his indicators are used by some of the investment world's top money and fund managers.

 

Now Tom has turned his attention to day trading and options, and has co-written (with his son, "TD,") a book that details his newest TD indicators and how they work in day-trading options, stocks and futures.

 

Thanks in large part to help from TD, all the hard-to-understand technical jargon has been eliminated. Instead, you'll find page after page of easy-reading explanations that make even the most complex and sophisticated of Tom's indicators easy to understand.

 

No detail is left out. You get the complete picture on every single indicator, including Tom's blockbuster favorite. . .

 

Learn to trade the DeMark way

PLEASE READ.  Past results are not necessarily indicative of future results.  There is a substantial risk of loss trading commodities with or without this or any other advertised product, service or system.  Also hypothetical or simulated performance results have certain inherent limitations.  Unlike an actual performance record, simulated results do not represent actual trading.  Since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.  Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.  No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.