Australian Technical Analysts Association

Meetings

Visitors are welcome to attend ATAA meetings. Click here for details.
Brisbane - Wednesday 9th August at 6.30am
Date: Tuesday, August 09, 2016 At 06:30
Duration: 2 Hours 30 Minutes

Venue: The Greek Club, 29 Edmondstone Street, South Brisbane. Click here to view map.

 

Visitors are welcome. First visit free, subsequent visits $40.

 

Please note: August meeting will be on the 2nd Wednesday

 

6:00 - 6:20 pm: Pre-meeting

An overview of BitCoin – a cryptocurrency (optional attendance).

 

6:30 pm: Exchange Traded Options – an overview

Options are a type of derivative security where the price is intrinsically linked to the price of something else such as shares, currencies or commodities. Specifically, options are contracts granting the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option.

 

Options have been around for more than 30 years, but are just now starting to get the attention they deserve. Many investors have avoided options, believing them to be sophisticated and, therefore, too difficult to understand.  Words like "risky" or "dangerous" have been incorrectly attached to options and it is important to get both sides of the story before making a decision about the value of options.

 

There are four key advantages options may give an investor:

- Greater cost efficiency. Options have great leveraging power, meaning an investor can obtain an option position that will mimick a security's position almost identically, but at a huge cost savings.

- Protection for long positions. This is called a hedge and can “insure” a portfolio of long positions against a sudden a market downturn.

- Less risk. There are situations where buying options is riskier than owning the underlying security, but there are also times when options can be used to reduce risk. It really depends on how you use them. Requiring less financial commitment can mean less risk.

- Higher potential returns. You don't need a calculator to figure out if you spend much less money and make almost the same profit, you'll have a higher percentage return.

- More strategic alternatives. Options are a very flexible tool and offer more investment alternatives by recreating other positions in securities; these are called synthetic positions.

For more information click here to visit the Investopedia Options Basics Tutorial.

 

7:40: Coffee break

 

7:55: Presentation continues

 

9:00 pm Close

 

9:00 – 10:00 pm Networking

 

Further information: Tim Young

Phone: 0414 873 003

Next meeting: 20th September

Next speaker: Darryl Nagel - The 50% Rule

Future meetings: Usually the 3rd Wednesday of each month