Guide to Successful Strategies Financial Times Guides by Jordan Lenny 6 potx

... spread 0 .66 debit 1.84 0 .66 55 .66 none 55 60 call spread 1.11 debit 3.89 1.11 56. 11 none 55 60 , one by two 0.77 debit 4.23 unlim. 55.77 64 .23 55–57.50– 60 ladder 0.32 debit 2.18 unlim. 55.32 62 .18 A ... this spread is as shown in Figure 9.1. 2 4 6 0 –2 –4 6 –8 50 52.5 55 57.5 60 62 .5 65 67 .5 70 Figure 9.1 Expiration profit/loss relating to Table 9.1 76 Part 2 ...

Ngày tải lên: 22/06/2014, 18:20

... put. On most open-outcry 45 4 6 8 2 0 –2 –4 6 –8 40 42.5 47.5 50 52.5 55 57.5 60 62 .5 65 Figure 10.2 Expiration profit/loss relating to Table 10.3 Many investors create spreads that combine ... paid 0. 96. If the stock closes above 60 at expiration, you will be assigned on your short call, and you will be obligated to sell the stock at 60 . The spread was traded for a deb...

Ngày tải lên: 22/06/2014, 18:20

... butterfly M&S 320 330 3 36 340 350 360 364 370 380 Spread credit 14 Value of spread at expiration –20 –20 –14 –10 0 –10 –14 –20 –20 Profit/loss 6 6 0 4 14 4 0 6 6 The profit/loss at expiry ... Spencer to increase from its current price of 350 .60 into the 360 range, you could pay 1 for the April 350– 360 – 370 call butterfly. You do this by paying 11.25 for one 350 call, se...

Ngày tải lên: 22/06/2014, 18:20

... 62 50 4 1 06 days until expiry ATM implied at 26 per cent Strike 62 25.0 63 25.0 64 25.0 65 25.0 66 25.0 67 25.0 68 25.0 69 25.0 Calls 359.5 303.0 253.5 205.0 165 .0 131.0 102.5 80.0 If you discern that the ... –7 .67 –5.17 –2 .67 0.00 0.77 7.33 9.83 12.33 Total profit/loss (–full amt) –8.44 –5.94 –3.44 –0.77 0.00 6. 56 9. 06 11. 56 A story and a bit of advice With the covere...

Ngày tải lên: 22/06/2014, 18:20

... 0.49 1.02 0 .64 2. 46 1.55 2750 121.00 0 .68 0. 56 1.14 0.94 2. 86 2. 36 2800 87 .60 0.58 0 .66 1.20 1.37 3.12 3. 56 2850 59.80 0.47 0.79 1.17 1. 96 3.18 5.32 2900 37.70 0.35 0.93 1.04 2. 76 2.97 7.88 2950 ... 2750 149.40 0 .64 0.43 0.84 0. 56 4.2 2.8 2800 1 16. 80 0. 56 0.48 0.85 0.73 4.5 3.9 2850 88.10 0.48 0.54 0.83 0.94 4.5 5.1 2900 63 .80 0.40 0 .63 0. 76 1.19 4.4 6. 9 2950...

Ngày tải lên: 22/06/2014, 18:20

... 20.75 580 17.13 19 .60 6. 75 18.87 585 13.50 18.44 8.38 18.21 *590 10.50 17.82 10.50 17.82 595 7.75 16. 98 60 0 5.38 16. 06 605 3 .63 15.49 61 0 2.38 15.12 61 5 1. 56 15.05 62 0 1.00 15.01 63 0 0.50 15.84 Source: ... 0.13 53 .67 430 0.19 52.77 440 0.25 51. 16 450 0.25 47 .66 460 0.19 42.59 480 0.31 38.71 490 0.44 37.19 500 0.50 34. 46 515 0.81 31.92 545 2.00 25.98 550 2.38 25. 06...

Ngày tải lên: 22/06/2014, 18:20

... positions are used primarily by professional market-makers to simplify the view of their options inventory in order to manage risk better. They are of little practical use to traders who take options ... a short XYZ 100 call, by virtue of its obligation to sell, equals a short XYZ position when XYZ is above 100 at expiration. A long XYZ 100 put, by virtue of its right to s...

Ngày tải lên: 22/06/2014, 18:20

... buyer +100 +75 +50 +25 0 –25 550 575 60 0 62 5 65 0 67 5 700 BE = 597.75 –22.75 2.25 27.25 52.25 77.25 102.25 Answer 4g 2 56 Questions and answers (h) 15.50 16. 00 16. 50 16. 79 17.00 17.50 18.00 Cost of ... (a) 68 .49 (b) 68 .49 (c) 1.51 (d) 68 .49, 1.51, 68 .49 (e) Obligation to buy stock at the strike price minus income from put: 70.00 – 1.51 = 68 .49 (f) $151 (g) Strike pr...

Ngày tải lên: 22/06/2014, 18:20

... to a trader in the stock market who buys stocks because his outlook is for increased prices. 7 1085.93 – 17.84 = 1 068 .09 was yesterday’s closing price 17.84/1 068 .09 = 0.0 167 , or 1 .67 % 1 .67 ... go to zero vii) 56. 5 – [390 – 370] = 36. 5p profit (b) i) 22.5 – 10 – 4.5 = 8, or £80 ii) 460 – 8 = 452 iii) 420 to 390 iv) [ 460 – 420] – 8 = 32 v) 390 – 32 = 358 vi) 358, if the sh...

Ngày tải lên: 22/06/2014, 18:20

... butterfly to the put condor. Chapter 13 answers 1 (a) i) 137.5 + 68 – [2 × 97.5] = 10.5 ii) [5775 – 567 5] – 105 = 89.5 iii) 567 5 + 10.5 = 568 5.5 iv) 5875 – 10.5 = 5 864 .5 v) 5 864 .5 – 568 5.5 = 179 ... £105 (b) i) 159.5 + 57 – 117 – 81 = 18.5 ii) [5725 – 562 5] – 18.5 = 81.5 iii) 562 5 + 18.5 = 564 3.5 iv) 5925 – 18.5 = 59 06. 5 v) 59 06. 5 – 564 3.5 = 263 points vi) 18.5 = £185 (c)...

Ngày tải lên: 22/06/2014, 18:20