Option trading strategies ppt

option trading strategies ppt

Puts 210 Premium long call: 10 Strike Price: Break-Even: Premium short call:. Put options can be bought toprotect the value of the stock position, while not preventing the position to benefit in theevent of a market rategy online jobs home chennai without investment ImplementationPut options are bought with a strike price of e number of put options bought willdepend on the bearishness. Upside PotentialProfit potential is limited to the premium received. No Downloads, no notes for slide. Strategy: Hold Stock and buy put rategy View (Bearish)Investor holds stock and is worried about a market fall. Upside PotentialLimitedDownside mmentCan be difficult to execute such strategies quickly. Strategy: Sell a call option and put option with the same strike rategy View (Neutral)Investor is certain that the market will not be very volatile (will neither go up nor downvery much).Strategy ImplementationA call option and a put option are sold with the same strike. Name* Description Visibility Others can see my Clipboard. Strategy: Buy a Call OptionStrategy View (Bullish)Investor thinks that the market will rise significantly in the short-term.Strategy ImplementationCall options are bought with a strike price. However for non-dividend stocks, an American put might be optimally exercised early, because there is a maximum of the put value: if the stock price goes to zero then the put is worth.

Strategy: Buy and sell Call Options with different strike rategy View (Bullish)Investor thinks that the market will not fall, but wants to cap the risk. PowerPoint Presentation: Conversely, if MNO stock loses money during the period the investor owns an out-of-the-money call (in the above example she will lose money. To view this presentation, you'll need to enable Flash. The gains on the putoptions - as the market falls - will off-set the stock mmentStrategy characteristics are similar to a buy call. The number of call options sold will be determined by the investorsmarket view and the size of the stock holding. To understand any trading term, refer to the cboe's handy Glossary. The profit to this combination, which I've labeled "Z looks remarkably like the profit to buying a call, c, at some cost.

Strategies, take a position in the trading and the underlying Take a position in.
Option, option, you can get as fancy as you want with your option strategies.
Lecture Overview In today s lecture we will examine options markets and the mechanics of how they operate.
We will also focus on trading strategies involving options.
We will explore: - Factors affecting option prices; - Upper and lower bounds for option prices; - Put-call parity; and, 7 Lecture Overview In today s lecture we will examine options markets and the mechanics.

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