Profit Making Techniques for Commodity Options 2nd Edition 3 pdf

... costs for margin trades will be more than for cash trades. The carrying cost for a cash transaction will only be the opportunity cost. Carrying costs for trades on margin include the financing for ... by the initial investment. The formula is: Return = (Profit or loss) ÷ initial investment For example, if you buy an IBM put option for 5 and sell it for 7 1 / 2 ,for a profit of...

Ngày tải lên: 21/06/2014, 12:20

... criterion for determining if you should roll forward is the return per day. However, it is only applicable for rolling forward into the same strike price. For example, you may be able to make $ 435 for ... Stock commissions −1 ,30 0 + Dividends (0.2%) +39 5 − Net investment required −192,952 Net profit $7,6 43 Return-if-exercised = 7,6 43 ÷192,952 = 3. 96% (47. 53% annualized) Examp...

Ngày tải lên: 21/06/2014, 12:20

... criterion for determining if you should roll forward is the re- turn per day. However, it is only applicable for rolling forward into the same strike price. For example, you might be able to make $ 435 ... 647 7 / 8 . Table 15 .3 shows the same situation for a bull call spread with the 645 call purchased for 10 3 / 4 and the 650 call purchased for 7 7 / 8 . The dollar risk for...

Ngày tải lên: 21/06/2014, 12:20

... structure, 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 ... writing, 128, 133 – 134 covered put writing, 164–165, 169 defined, 34 35 Return-if-unchanged: covered call writing, 128–129, 133 – 134 covered put writing, 165, 169 defined, 3...

Ngày tải lên: 21/06/2014, 12:20

... 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 of the various strike prices; the columns are for calls and puts and the ... the 70 60 50 40 30 20 Profit 10 –10 0 25 30 35 40 45 50 55 60 65 Price of Underlying Instrument at Expiration 70 75 80 85 90 95 100105 110115 120 FIGURE 2.1 Option Chart c 03 JWBK...

Ngày tải lên: 20/06/2014, 20:20

... 0.0 03 −0 .36 0.26 0. 03 c04 JWBK147-Smith May 8, 2008 9:48 Char Count= Advanced Option Price Movements 53 TABLE 4.9 Implied Volatilities Implied Strike volatility 35 35 40 33 45 30 50 27 55 31 60 33 65 ... 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 Opt...

Ngày tải lên: 20/06/2014, 20:20

... Delta Gamma Theta Vega Oct 120 C −.50 20 .33 −.20 −.059 .04 83 −.0658 Oct 105 C 11.20 31 .75 .94 .016 −.0452 .0279 Net Position 10,700 .74 −.0 43 .0 031 −. 037 9 Interesting. We had to come up with an ... us more bang for the buck: Option Premium Imp Vol Delta Gamma Theta Vega Oct 115 C 3. 50 27 .33 −.61 −.0597 .0922 −.0907 Oct 105 C 11.40 31 .67 .98 .006 −.021 .0081 Net Position −$80 ....

Ngày tải lên: 20/06/2014, 20:20

... vega before rolling forward. c08 JWBK147-Smith May 8, 2008 10:0 Char Count= 104 BUY A PUT 7 Price of Underlying Instrument Profit 6 4 3 5 2 1 −1 −2 3 0 40 41 42 43 44 45 46 47 48 49 50 51 53 54 55 56 57 58 59 60 52 FIGURE ... JWBK147-Smith May 8, 2008 10 :3 Char Count= 116 OPTION STRATEGIES 3 Price of Underlying Instrument Profit 2 0 −1 1 −2 3 −5 −6 −7 −4 40 41 42 43 44 45...

Ngày tải lên: 20/06/2014, 20:20

... 647 7 / 8 . Table 15 .3 shows the same situation for a bull call spread with the 645 call purchased for 10 3 / 4 and the 650 call purchased for 7 7 / 8 . The dollar risk for a bull call spread ... criterion for determining if you should roll forward is the re- turn per day. However, it is only applicable for rolling forward into the same strike price. For example, you might b...

Ngày tải lên: 20/06/2014, 20:20

... 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 ... 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 46 47 48 4...

Ngày tải lên: 20/06/2014, 20:20