Option Strategies Profit Making Techniques for Stock Index and Commodity Options 2nd Edition 3 pptx

... Close SP100 Apr 530 p 2 434 7721 .25 .125 .125 −.0625 633 .55 SP100 Apr 565 p 1724 5449 .875 .25 .31 25 −.8125 633 .55 SP100 Apr 570 p 2 232 10406 1.0625 .37 5 . 437 5 −.8125 633 .55 The rows are for the prices ... Exchange-traded option transactions, on the other hand, can be consummated in seconds. The introduction of FLEX options blurred the line between exchange- traded and OTC o...

Ngày tải lên: 20/06/2014, 20:20

... in foreign interest rates. This is only used in foreign exchange options. It has no impact on any other options. Foreign exchange options are affected by phi because options are priced on the forward ... 0.0677 0. 538 4 0. 936 0 30 0. 039 9 0. 533 4 0.9582 20 0.0146 0.5274 0.98 13 10 0.0009 0.5195 0.9978 c 03 JWBK147-Smith April 25, 2008 8 :33 Char Count= The Basics of Option Price...

Ngày tải lên: 20/06/2014, 20:20

... are trading for $4 and the out-of-the-money options are trading for $2. This means that you could have twice as many of the out-of-the-money options as you could of the at-the-money options. This ... far options is much greater than near options, and you will be able to profit handsomely if the implied volatility moves significantly higher. The final consideration is liquidity. F...

Ngày tải lên: 20/06/2014, 20:20

... are trading for $4 and the out-of-the-money options are trading for $2. This means that you could have twice as many of the out-of-the-money options as you could of the at-the-money options. This ... far options is much greater than near options, and you will be able to profit handsomely if the implied volatility moves significantly higher. The final consideration is liquidity. F...

Ngày tải lên: 20/06/2014, 20:20

... out- of-the-money options is greater than the at-the-money options. You can sell the out-of-the-money options and buy the at-the-money options, expecting the volatility skew to go away or to be reduced. For ... follow-up strategies. ) The point to remember is that you will need more out-of-the-money options to cre- ate a delta-neutral position than in-the-money or at-the-money o...

Ngày tải lên: 20/06/2014, 20:20

... JWBK147-Smith May 8, 2008 10:14 Char Count= 198 OPTION STRATEGIES 3 Profit 2 1 0 −1 −2 3 Price of Underlying Instrument 40 41 42 43 44 41 46 47 48 49 50 51 53 54 55 56 57 58 59 60 52 FIGURE 16.1 Bear ... 2008 10: 13 Char Count= c17 JWBK147-Smith May 8, 2008 10:17 Char Count= 210 OPTION STRATEGIES 4 Price of Underlying Instrument Profit 0 −1 1 3 −2 2 40 41 42 43 44 45...

Ngày tải lên: 20/06/2014, 20:20

... are trading for $4 and the out-of-the-money options are trading for $2. This means that you could have twice as many of the out-of-the-money options as you could of the at-the-money options. This ... by some amount before expiration for you to make any money at expiration. For example, assume you bought OEX 180 options at 12 and the OEX was at 185. If the option expires...

Ngày tải lên: 21/06/2014, 12:20

... out-of-the-money options is greater than the at-the-money options. You can sell the out-of-the-money options and buy the at-the-money options, expecting the volatility skew to go away or to be reduced. For ... costs and that you will hold the write for one month. Example 10.1 Net investment required–Common Cost of stock $196,950 + Stock commissions +1 ,30 0 − Options prem...

Ngày tải lên: 21/06/2014, 12:20

... out- of-the-money options is greater than the at-the-money options. You can sell the out-of-the-money options and buy the at-the-money options, expecting the volatility skew to go away or to be reduced. For ... write options c14 JWBK147-Smith May 8, 2008 10:8 Char Count= 176 OPTION STRATEGIES 10 Price of Underlying Instrument Profit 8 4 2 6 0 −2 −6 −8 −10 −4 40 41 42 43 44...

Ngày tải lên: 21/06/2014, 12:20

... 178–181 rationale for, 175–177 risk/reward and, 177–178 Ratio spread strategy, 53, 233 –2 43 decision structure, 236 –2 43 rationale for, 233 – 234 risk/reward and, 235 – 236 Rebalancing: neutral strategies and, ... May 29, 2008 21: 23 Char Count= 0 30 2 INDEX Carrying charges: break-even point and, 32 33 forward price and, 61 summarized, 2–4 Chicago Board Options Exchang...

Ngày tải lên: 21/06/2014, 12:20