Learning Techniques for Stock and Commodity Options 10 doc
Learning Techniques for Stock and Commodity Options_1 docx
... 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 ... drawbacks. As a result, the model is no longer the standard for options on bonds, foreign exchange, and futures, though the standard models for these three items are modification...
Ngày tải lên: 22/06/2014, 17:20
Learning Techniques for Stock and Commodity Options_2 pdf
... 79 117.5 115.0 112.5 110. 0 107 .5 105 .0 102 .5 100 .0 97.5 95.0 92.5 27 Sep 2013623 Aug 16925 Jul 181129 Jun 2114723 May 16926 Apr 19 40M 30M 20M 10M FIGURE 6.1 IBM Price Chart care. I’ve included “don’t care” for ... classic forecasting techniques, such as regres- sion analysis, time series analysis, and even classic chart patterns such as head and shoulders and trendlines. H...
Ngày tải lên: 22/06/2014, 17:20
Learning Techniques for Stock and Commodity Options_3 pptx
... expected rally and the risk if there is no rally. Thus, for an excellent guide to the relative risk and reward of holding various options, take the implied or estimated volatility for each stock, esti- mate ... pay $11,555 for the 100 shares and receive $2,500 for our short call for a net investment of $9,055. However, the position is not ac- ceptable. We wanted to own the...
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Learning Techniques for Stock and Commodity Options_4 ppt
... decline and the risk if there is no decline. Thus, for an excellent guide to the relative risk and reward of holding various options, take the implied or estimated volatility for each stock, esti- mate ... 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 p...
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Learning Techniques for Stock and Commodity Options_5 pot
... down and forward—keep some of your original write, and roll down and for- ward some into the next expiration month. Note that rolling down and forward restricts the maximum profit potential for ... For example, if you’re long one UI and short two calls, you have, for margin purposes, one covered call write and one naked short call. Break-Even Point The formulas for the tw...
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Learning Techniques for Stock and Commodity Options_6 pdf
... roll up and forward—keep some of your original write and roll up and forward some into the next expiration month. Note that rolling up and forward restricts the maxi- mum profit potential for a ... you will select. The reasons for this are that the delta will be higher for a higher strike price than for a lower strike and that the premium is higher, thus affording greater pro...
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Learning Techniques for Stock and Commodity Options_7 doc
... puts. For example, if you short one UI and two puts, you have, for margin purposes, one covered put write and one naked short put. Break-Even Point The formulas for the two break-evens for a ... maximum risk and the point where it occurs, 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 purch...
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Learning Techniques for Stock and Commodity Options_8 pptx
... prices: Dun & Bradstreet stock = 105 1 / 2 November 100 call = 6 3 / 4 November 105 call = 3 November 110 call = 1 1 / 4 This short butterfly would be initiated for a net credit of +6 3 / 4 –6+ 1 1 / 4 , ... the maximum risk and the point where it occurs, 650. Table 16.3 shows the same situation for a bear call spread with the 645 call sold for 10 3 / 4 and the 650 call...
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Learning Techniques for Stock and Commodity Options_9 ppt
... Therefore, you must continually adjust the ratio of the long to short options. For example, you are long 100 options on the S&P 500 futures contract with a strike of 530 and a delta of 0.69, and ... 100 calls = 8 1 / 2 January 105 calls = 6 3 / 8 You are quite bearish and sell three January 105 calls and buy only one January 100 call. The net credit on the trade is 10...
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Learning Techniques for Stock and Commodity Options_10 doc
... volatility. For example, Widgetron might be trading at $50 with the options at an implied volatility at 10 percent. This suggests that the range in the future will be between $45 and $55, or 10 percent ... blending of ratio spreads and calendar spreads. It consists of selling nearby options and buying fewer of a far- ther option. For example, you could sell 4 of the July 40...
Ngày tải lên: 22/06/2014, 17:20