Learning Techniques for Stock and Commodity Options 12 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
... classic forecasting techniques, such as regres- sion analysis, time series analysis, and even classic chart patterns such as head and shoulders and trendlines. However, professional options traders will ... volatil- ity. Usually, the value for volatility is plugged in and the formula is solved for the value of the option. Here, the situation is reversed—the formula is solved f...
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 ... divided by the initial investment. The formula is: Return = (Profit or loss) ÷ initial investment For example, if you buy an IBM option for 5 and sell it for 7 1 / 2 ,...
Ngày tải lên: 22/06/2014, 17:20
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...
Ngày tải lên: 22/06/2014, 17:20
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...
Ngày tải lên: 22/06/2014, 17:20
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 ... 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...
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Learning Techniques for Stock and Commodity Options_8 pptx
... 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 purchased for 7 7 / 8 . TABLE ... two strike prices, in this case, 645. Table 16.1 shows the profit and loss for each of the two options and the net profit or loss for the total position at different prices of th...
Ngày tải lên: 22/06/2014, 17:20
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 ... following discussion and turn it on its head to see what the selection and follow-up strategies should be for a reverse calendar spread. RISK/REWARD Break-Even Point Break-even...
Ngày tải lên: 22/06/2014, 17:20
Learning Techniques for Stock and Commodity Options_10 doc
... gives a down-side break-even of $54. For another example, suppose Intel is trading at 120 1 / 4 and you buy the November 120 call and the November 120 put for 10 1 / 4 each. The net credit is ... net credit For example, suppose you initiated a long straddle using options on Textron for December expiration. Textron is trading at 59 3 / 4 , so you buy the 60 call and the 60...
Ngày tải lên: 22/06/2014, 17:20