How to Trade

Learn How to Trade:

One of the best ways to learn how to trade options is to use KeeneOnTheMarket’s Live Trading Room. Andrew Keene has over 10 years experience trading options on the Chicago Board Options Exchange. By subscribing to the Live Trading Room you’ll have 100% access to Keene’s trades thoughout the day.

Or you can learn how to trade options with Andrew Keene one on one. Get the mentoring you need to be a successful options trader from an 11 year trading veteran. Also are available are two and five day bootcamps from KeeneOnTheMarket. Another way to learn to trade options is to follow KeeneOnTheMarket’s permium twitter feed where you can track Keene’s trades thoughout the day.

What are Options?

What are Options: Definition

An option is simply a contract that guarantees the right to buy or sell an underlying asset at a specific price before a certain date. An option is another type of security, like a stock or bond. The price the option guarantees its owner is called the strike price. An options contract generally represents 100 underlying shares. The income earned by the seller of an option contract is called the premium.

What are Options: Calls and Puts

There are two types of options: calls and puts. A call gives its owner the right to buy an asset at a certain price before a certain date. A call holder hopes the stock price will increase before the option expires. A put gives its owner the right to sell an asset at a certain price before a certain date. A put holder hopes the stock price will decrease before the option expires.

What are Options: Example

Someone buys an options contract to buy 100 shares of stocks for $80 dollars for $200. The contract expires in 180 days. If the stock price grew to $85 dollars before the 180 days, the options holder would have the right to buy the 100 shares at $80 strike price, essentially saving $500 while paying the option’s seller the $200 premium.

UA Fundamentals (UA, SPY) 3.15.2013

Under Armour has made many inroads into different sectors of the retailing market. As mentioned before, these include the shoe, casual, and female market for example. A risk to these efforts is if these investments don’t pay off, or the consumer rejects their products. It is interesting to note too that the stock has over 17% short interest. This may indicate that some of Wall Street believes UA is overvalued and does not present great prospects as it once did before from a risk reward prospective.

The front month options imply a $4.4 range up or down by expiration in just over 30 days. This is about an 8% move up or down.


[email protected]

UA Fundamentals

A Million Dollar Profit in GMCR in less than a Week 3.11.2013

Sometimes, I miss trades, because I am at a meeting, on the phone or
away from my desk.  Every Morning when I
wake up the first thing I do is turn on CNBC.  I watch to see the
stocks that are moving in  pre-market trading.  I saw GMCR has been on fire on
a possible short and squeeze.  So, then I went to my Unusual Options Activity
scanner and noticed a trader bought 5517 GMCR April 55 Calls for
$.96.  This was the biggest order over the last 10 trading days.  Let
me show a breakdown of how much money
this trader made.

 

Paper bought 5517 April 55 Calls for $.96
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)

Risk: $96 per a lot
Reward: Unlimited
Breakeven: $55.96
Cash Outlay for this Trade: $529,632

 

Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short

On 3.11.2013, these Calls are worth $2.50, so lets breakdown this
trades Profits.

$2.50- $.96 * 100 * 5517=  $849,618

If a trader risked $1,000 on this trade and bought 11 Options they
would have netted $2,500  If a trader risked $5,000 on the trade and bought 55 Options, they
would netted $12,500

This is just another example of trading with the BIG money and Hedge
funds in the BEST Live Trading Room http://bit.ly/108XTgh as I
breakdown over 2,000 trades in a day and also tweet them on our

Premium Twitter feed http://bit.ly/WmtfI4

By the way, SEC leave those HNZ traders alone.

Unusual Option Activity Nets HUGE Profits 3.10.2013

Sometimes, I miss trades, because I am at a meeting, on the phone or away from my desk.  Every Morning when I
wake up the first thing I do is turn on CNBC.  I watch to see the
stocks that are moving in  pre-market trading.  I saw NAV jumping higher on
a variety of news.  So, then I went to my Unusual Options Activity
scanner and noticed a trader bought 12,000 NAV April 30 Calls for
$.65.  This was the biggest order over the last 10 trading days.  Let me show a breakdown of how much money
this trader made.

Paper bought 12,000 NAV April 30 Calls for $.65
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)
Risk: $65 per a lot
Reward: Unlimited
Breakeven: $30.65
Cash Outlay for this Trade: $780,000

Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short

On 3.8.2013, these Calls are worth $6.15, so lets breakdown this trades Profits.

$6.15- $.65 * 100 * 12,000=  $6.6 Million Dollar

If a trader risked $1,000 on this trade and bought 15 Options they
would have netted $8,250

If a trader risked $5,000 on the trade and bought 75 Options, they
would netted $41,250

This is just another example of trading with the BIG money and Hedge
funds in the BEST Live Trading Room http://bit.ly/108XTgh as I
breakdown over 2,000 trades in a day and also tweet them on our
Premium Twitter feed http://bit.ly/WmtfI4

By the way, SEC leave those HNZ traders alone.


Andrew Keene
President/Founder
[email protected]
@KeeneOnMarket

Boot Camp

We can offer apiring traders live 1 on 1 mentoring via the web or in person in our Chicago Offices adjacent to the Chicago Board Options Exchange. Students would recieve education from 11 year veteran options trader Andrew Keene and his staff on topics that are essential to a trader’s success. Students could also purchase 1 on 1 mentoring with James Ramelli, KOTM futures and options trader, at a discounted rate.

Available Courses are shown below: 

 boot1

 boot2 boot3

 Give us a call for more information at 312-261-5581

 

Options Education - Bootcamp-page-001

1 on 1 Mentoring

We can offer apiring traders live 1 on 1 mentoring via the web or in person in our Chicago Offices adjacent to the Chicago Board Options Exchange. Students would recieve education from 11 year veteran options trader Andrew Keene and his staff on topics that are essential to a trader’s success. Students could also purchase 1 on 1 mentoring with James Ramelli, KOTM futures and options trader, at a discounted rate.

Available Courses are shown below: 

basic

inter

adv

Give us a call for more information at 312-261-5581

 

 

Options Education - Web-page-001

 

Apple Declining Over Tax Worries? 12.17.12

As much as it pains me to say this, the fiscal cliff can actually have a large impact on Apple as taxes on their capital gains and dividends are likely to rise next year from the current 15% tax rate. Next years expected tax rate for Apples capital gains and dividends is 35%. Yes, this means that the giant cash pile of $120 billion will be taking some hits, and investors sure do not want to keep playing the Apple ‘miracle’ game much longer.

The stock is up 150% since the start of 2010, and if you’ve got gains like this as an investors your going to take some chips off the table. The whole point is to make money and lock in profit on the way up. So, this entire decline is a result of sellers locking in profit because they don’t want to keep all the chips on the table for next years higher taxes. And on the flip side, the buying volume is very weak because the buyers are sitting on the sideline waiting to see how the fiscal cliff negotiations turn out.

Author: Peter Nitso

[email protected]

Rumors of Delays are Circulating AAPL TV 12.10.12

AAPL may be planning to modernize the television set, but doing so may take longer than expected. Many people are wondering what AAPL has planned for the Apple TV. Some earlier rumors have suggested that it will resemble an advanced version of the current Apple TV set-top box, and would act similarly to a cable box. Some rumors go as far as to claim that AAPL is building a complete Apple television set. The development of the Apple TV may be in the works, but there have been several rumors suggesting that its release will be delayed. If AAPL was to launch its own live television through a cloud-based cable box, it would have to first reach a deal with the cable companies regarding content rights distribution. This could prove to be a challenging task considering that cable companies may be reluctant to work with AAPL in fear of eventually losing market share. It is doubtful that the well-established TV broadcasting companies want to be competing directly with AAPL since it has dominated practically every market it has entered. Before his passing, Steve Jobs had said that he was not particularly fond of teaming up with regional cable operators. Their lack of reach could create a variety of operational problems. Despite being referred to as a self-proclaimed “hobby”, AAPL continues to display a growing interest in the TV broadcasting market. It will probably be quite some time before AAPL actually cuts a deal with one of the major cable companies. Negotiating a deal will be the major setback for AAPL and likely delay the company’s intentions to offer live TV. Piper Jaffray analyst, Gene Munster, estimates a release for the Apple TV set to be during November of 2013. It may take longer for AAPL if they don’t find a cable company to partner up with soon.

Author: Tyler Sciortino 

email: [email protected]

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