Option Strategies Profit Making Techniques for Stock Index and Commodity Options 2nd Edition 9 doc

... 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 options. FLEX options are options ... be: 1. A stock, like 100 shares of Citibank stock. (Note that options on stocks are always for 100 shares of the underlying stock. Options on futures are for the sam...

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 .91 65 40 0.0677 0.5384 0 .93 60 30 0.0 399 0.5334 0 .95 82 20 0.0146 0.5274 0 .98 13 10 0.00 09 0.5 195 0 .99 78 c03 JWBK147-Smith April 25, 2008 8:33 Char Count= The Basics of Opt...

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... at expiration. For example, assume you bought OEX 580 options at 12 and the OEX was at 575. If the option expires and c06 JWBK147-Smith May 8, 2008 9: 52 Char Count= 84 OPTION STRATEGIES FIGURE ... looking like this: Option Premium Imp Vol Delta Gamma Theta Vega Oct 115 C −3.50 27.33 −.61 −.0 597 . 092 2 −. 090 7 IBM 18,141 1.57 Net Position and Profit/Loss +18.10 .96 −.0 59...

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... 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...

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... 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...

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... 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 Spread Note ... potential profit than with other option strategies. Be sure to consider the cost of commis- sions before selecting a bear spread over other bearish strategies and before selec...

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 ,95 0 + Stock commissions +1,300 − Options pre...

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 ... 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: 21/06/2014, 12:20

... Sons, 198 0), Commodity Spreads (John Wiley & Sons, 198 1 and Traders Press, 198 9), How to Make Money in Stock Index Futures (McGraw-Hill, 198 5, paperback edition 198 8), Sea- sonal Charts for ... 23 Far-term/long-term option, 12 Financing costs, 3–4, 31 FLEX options, 11 Foreign exchange options: interest rates and, 28 Phi and, 48– 49 Forward price, 61 Futures contrac...

Ngày tải lên: 21/06/2014, 12:20