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YEAR END OPTIONS TRADING CAN BE A TIME TO CASH IN ON PREDICTABLE SWINGS IN STOCK PRICES.

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FOR EXAMPLE, PORTFOLIO MANAGERS MAY NEED TO FREE UP CASH AND MAY SELL STOCKS BEFORE THE END OF THE YEAR.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

A SUFFICIENTLY LARGE SALE OR PURCHASE OF ANY GIVEN STOCK MAY WELL MOVE THE STOCK PRICE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

IN YEAR END OPTIONS TRADING THE TRADER SEEKS TO ANTICIPATE SUCH STOCK PRICE MOVEMENT AND BUY CALLS, BUY PUTS, SELL CALLS OR SELL PUTS ACCORDINGLY.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

WHEN TO BUY CALLS, WHEN TO BUY PUTS, ETC. WILL DEPEND UP BOTH FUNDAMENTAL AND TECHNICAL ANALYSIS OF THE UNDERLYING STOCKS.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

PERTINENT END OF THE MONTH OF DECEMBER DATES ON THE OPTIONS CALENDAR FOR YEAR END OPTIONS TRADING FOR 2011 ARE DECEMBER 30 WHICH IS THE QUARTERLY OPTIONS EXPIRATION DATE AND DECEMBER 26 WHICH IS THE VIX EXPIRATION DATE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

DECEMBER 17 IS THE EQUITY INDEX, CASH-SETTLED CURRENCY AND TREASURY/INTEREST RATE OPTIONS EXPIRATION DATE. TRADERS ARE ADVISED TO DOUBLE CHECK THE OPTIONS CALENDAR FOR TIME SENSITIVE TRADING.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

NORMALLY OPTIONS TRADERS LOOK AT THE PUT TO CALL RATIO, STOCK FUNDAMENTALS, OR TECHNICAL PRICE PATTERNS OF THE STOCKS WHOSE OPTIONS THEY TRADE. HOWEVER, YEAR END OPTIONS TRADING ALSO NEEDS TO TAKE INTO CONSIDERATION THE TAX CALENDAR AS WELL.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

WHEN TAX LAWS CHANGE INVESTORS MAY BUY OR SELL STOCK IN LARGE QUANTITIES IN ORDER TO TAKE ADVANTAGE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

PORTFOLIO MANAGERS (WE MENTIONED THOSE GUYS) LIKE TO SHOW NICE YEAR END PROFITS AND MAY SELL WINNING STOCKS AND HOLD CASH AT YEAR END IN ORDER TO AVOID UNEXPECTED MARKET VARIATIONS THAT COULD TARNISH THEIR PERFORMANCE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

IN AN UNCERTAIN YEAR END MARKET TRADERS MAY USE STRATEGIES SUCH AS A LONG STRADDLE IN ORDER TO LOCK IN PROFITS NO MATTER WHICH WAY THE MARKET MOVES.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

NOTHING IN LIFE IS ABSOLUTELY CERTAIN EXCEPT DEATH AND TAXES BUT THE ODDS ARE USUALLY PRETTY GOOD THAT THERE WILL BE PROFITABLE YEAR END OPTIONS TRADING FOR THOSE WHO DO THEIR HOMEWORK AND WATCH THE MARKETS CLOSELY.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

WE ARE COMING OFF OF A VERY VOLATILE YEAR. SOME HAVE LOST MONEY AND SOME HAVE GAINED.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

THOSE WHO HAVE LOST MAY CHOOSE TO SELL STOCK AND USE THEIR LOSSES FOR TAX PURPOSES.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

AS WITH THE MONEY MANAGER SCENARIO WE MENTIONED ABOVE THE SALE OF SUFFICIENTLY LARGE BLOCKS OF STOCK CAN DRIVE PRICES, IN THIS CASE DOWN.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

THROUGHOUT THE YEAR WE HAVE WRITTEN ABOUT NETFLIX OPTIONS, BUYING CALLS ON CATERPILLAR, PUTS ON LINKEDIN AND MORE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

ANYONE WHO HAS TRADED OPTIONS ON THESE STOCKS, OR SIMPLY DONE A BIT OF RESEARCH AND FOLLOWED UP, WILL BE AWARE OF WHICH STOCKS AND WHICH OPTIONS HAVE BEEN ACTIVE.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

HAVING DONE A BIT OR PRIOR RESEARCH WILL HELP THE OPTIONS TRADER PICK THE RIGHT STOCKS FOR YEAR END OPTIONS TRADING.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

THEN THE JOB OF THE OPTIONS TRADER IS TO UPDATE HIS RESEARCH AND BE READY TO BUY OR SELL CALLS OR PUTS DEPENDING UPON THE RESULTS.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

AS ALWAYS WE ARE NOT SUGGESTING THAT ONE TRADE THE STOCKS OR OPTIONS ON THE STOCKS LISTED BUT RATHER THAT THEY USE THE THOUGHTS AND INFORMATION HERE TO DEVELOP A PROFITABLE STRATEGY FOR YEAR END OPTIONS TRADING OR TRADING THROUGHOUT THE YEAR.

W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M

FOR MORE INSIGHTS AND USEFUL INFORMATION REGARDING OPTIONS AND OPTIONS TRADING, VISIT WWW.OPTIONS-TRADING-EDUCATION.COM. W W W . O P T I O N S - T R A D I N G - E D U C A T I O N . C O M