Tags Posts tagged with "options"

options

0

The forward collar is a trade-off strategy where you give up some gains to limit losses. It's useful if you expect an asset to stay range bound.

5

In highly volatile and uncertain markets that we are seeing of late, stop losses cannot always be relied on to protect downside risk. This is where risk defined trades come in.

0

A basic credit spread involves selling an out-of-the-money option while simultaneously purchasing a further out-of-the-money option.

0

Writing covered calls can increase the total yield on otherwise fairly static trading positions. It’s often used by portfolio managers who control large funds.

0

When selling (writing) options, one crucial consideration is the margin requirement. Correct planning in this area will help you to avoid the stress...

1

Writing uncovered options has the traditional connotation of “picking up nickels in front of a steamroller”. So why would anyone in their right mind want to do it?

6

When traders talk about hedging, what they often mean is that they want to limit losses but still keep the potential to make profits. Of course having such an idealized outcome has a hefty price.

0

Currency forwards and futures are where traders agree the rate for exchanging two currencies at a given date in the future. This can for example be 1 month, 3 months, or 6 months ahead.