Hughes Optioneering

April 6, 2017

This Nasdaq ETF Option Trade
Profits if the ETF is Up, Down or Flat

By: Chuck Hughes

In this video the Hughes Optioneering Team will explore an option spread strategy that can profit in up, down or flat markets. The Option Spread Analysis below displays the profit potential for an actual Nasdaq ETF option spread trade that we currently own.

This analysis reveals the profit potential for the Optioneering spread trade assuming various price changes for the Nasdaq ETF at option expiration from a 15% increase in price to a 15% decrease in price.

The analysis reveals that if the Nasdaq ETF remains flat or increases in price at option expiration, we will realize a $1,398 profit and a 462.9% return (circled). A 15% decline in the Nasdaq ETF at expiration would result in an 88.3% return.

Learn how to set up option spreads that can profit if the underlying stock/ETF increases in price, remains flat or declines in price.

 

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Call Option Spread Analysis

 

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Futures, stocks, bonds, currency and options trading involves high risks with the potential for substantial losses.

PLEASE READ. Past results are not necessarily indicative to future results. There is a substantial risk of loss trading stocks and options 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.