Speculating on market declines and trying to pick a top by purchasing put options therefore has a built-in implied volatility edge. What makes this strategy more attractive is that implied volatility is typically at extreme lows at market tops so a put buyer would be buying very "cheap" option...
From Proposition 1, it can be seen that, under the mode of flexible supply with a wholesale price contract, when the dealer’s order quantity is low, the main cost is opportunity loss. As it increases, the opportunity loss decreases and the income increases. When the order quantity exceeds...
This generally means traders can use delta to measure the directional risk of a given option or options strategy. Higher deltas may be suitable for higher-risk, higher-reward strategies that are more speculative, while lower deltas may be ideally suited for lower-risk strategies with high win ...
option strategy in the portfolio tools, by name. Added a cash deposit/withdrawal tracking feature in the portfolio tools and reporting to show past cash changes that you've made to your cash levels. Extended all of the charts and analysis tools to work with higher max profit and max loss ...
can be difficult to choose. Anout-of-the-moneycovered call (long stock with a short out-of-the-money call) and an out-of-the-money short put are combined to form a covered options strategy. Here, no cash is retained in reserve, so if the put is assigned, purchases cannot be made....
With over two decades of experience in the financial services industry, Gargi has built her career around portfolio management in the fixed income markets, trading and investment strategy. She regularly contributes her macro and financial market views across global media outlets for clients in US, Ca...
An investor executes the short straddle when he thinks that the underlying security’s price will not increase or decrease significantly. This strategy allows investors to profit from an underlying security when there is no movement in the security’s price. ...
1 Day NAV Change as of Dec 03, 20240.01 (0.03%) NAV Total Return as of Dec 03, 2024YTD:16.58% Investment Approach A simple way to seek a balance between long-term capital appreciation and high current income, with a greater emphasis on capital appreciation ...
With the protective put strategy, you have a hard line in the sand on your max risk point. That can give you comfort because you know your worst-case scenario in advance (see figure 1), no matter how much the share price plummets. If the stock were to rally instead of fall, you’...
As the name of the strategy suggests, a bear call spread is used when someone is bearish on the underlying asset. Bear call spreads are often used when an investor believes that the underlying asset will undergo a moderate decline in price but wants to limit any potential loss. It's a re...