Calendar Spreads: Seeking Profit From Theta Time Decay
Tuesday, January 17th at 3:30pm CT
In this webinar guest speaker, author, educator and trader, Rob Roy will do a deep dive into Calendar Spreads including how to set them up and how you can use them to seek profits in your trading.
Be sure to Register Here Now to increase your options trading knowledge and get your questions answered live!
All attendees will receive a free gift courtesy of Rob and the recorded replay. Don't miss out on this FREE educational opportunity on options trading!
Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2022, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
Investors may want to keep an eye on the biotech boom.
For one, the sector is still one of the safest, most recession-proof investments around. Two, an aging population is demanding better treatment in an effort to live longer lives. Three, there’s incredible new innovation in gene therapies, immune-oncology, precision medicine, machine-learning drug discovery, and treatments for unmet medical needs. All of which is attracting millions of investors into the red-hot biotech space.
With that, here are five ways to invest in the biotech story.
SPDR S&P Biotech ETF (XBI)
One of the best ways to diversify at less cost is with a biotech ETF, such as the SPDR S&P Biotech ETF (XBI). With an expense ratio of 0.35%, the ETF offers exposure to the S&P Biotechnology Select Industry Index. Some of its top holdings include Biogen, Veracyte, Moderna, Gilead Sciences, Amgen, and VIr Biotechnology to name a few.
Other top biotech ETFs include the IBB ETF, which holds dozens of stocks, including Amgen, Vertex, Gilead Sciences, Illumina, Regeneron, and Biogen to name a few. The IBB, which has an expense ratio of 0.44%, last trade around $133. Or, look at the Ultra NASDAQ Biotechnology ETF (BIB).
The "free trade" combines the best principles of money management and taking advantage of "undervalued" and "overvalued" options. However, the most exciting aspect of the "free trade" is that it can allow you to build a large position in a trending market without risking your initial risk.
To initiate the "free trade," first purchase the best-priced option. Then, when (and if) the price and volatility (premium) rise, sell a further out-of-the-money option at the same price. (Of course, if the market does not move in your favor, you cannot complete the "free trade.") Another benefit of the "free trade" is that after it is completed there is no margin, capital necessary, or potential loss (other than brokerage fees and costs).
The "free trade" accomplishes several objectives:
First, it keeps your account intact if the market turns around. Just as quickly as markets rise, they can also fall. The "free trade" position provides protection from loss in this situation (see chart).
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
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