In aniron condorstrategy, the trader combines a bear call spread with abull put spreadof the same expiration to capitalize on a retreat in volatility that will result in the stock trading in a narrow range during the life of the options. Generally, the difference between the strike prices of...
Nifty is currently trading @ 5600. Sell Straddle can be created by Selling Call and Put Option for Strike 5500 having premium of 65 and 35 respectively. Net inflow of premium is 100. Strategy Sell Straddle Stock/Index NIFTY(Lot size 50) Type Sell CALL Sell PUT Strike 5600 5600 Premium ...
Sadly, there are still many fake option trading gurus out there teaching these option strategies for thousands of dollars.Classification of Option StrategiesBroadly, Option Strategies are classified under 5 categories : Bullish Strategies, Bearish Strategies, Volatile Strategies, Neutral Strategies and ...
A chooser is a nonstandard option in which the buyer decides after a set period of time whether it is to be a call or a put. It is similar in its payoff to a straddle. A short straddle combines a short put and call on the same underlying with the same strike and expiry date. It...
Delta is a ratio—sometimes referred to as a hedge ratio—that compares the change in the price of an underlying asset with the change in the price of a derivative or option. Delta is one of the four measures options traders use for analyzing risk; the other three are gamma, theta, and...
In this example, imagine you bought (long) 1 $40 July call option and also bought 1 $40 July put option. With the underlying trading at $40, the call costs you $1.14 and the put costs $1.14 also. Now, when you're the option buyer (or going long) you can't lose more than your...
In order to choose the right options trading strategy, you must first understand how options are priced.Why? Let’s take a hypothetical scenario. Company A has their quarterly earnings report today. You buy a call option expecting the price of the stock to rise over the next week to a lev...
Types of option trading: Depending on the rise and fall of stocks, options are broadly classified into two types, calls and puts.Callsincrease in value as the stock rises while asputsincrease in value as the stock falls. Types of option trading strategies: ...
P Santa-Clara,A Saretto - 《Journal of Financial Markets》 被引量: 241发表: 2009年 Option Volatility & Pricing: Advanced Trading Strategies and Techniques One of the most widely read books among active option traders around the world, Option Volatility & Pricing has been completely updated to ...
Options trading strategies run the gamut from straightforward "one-legged" trades to exotic “multi-legged” beasts. But what all options strategies have in common is that they’re based on two fundamental option types: calls and puts. If you don’t already have a strong understanding of these...