Option Strategies 2
About the Lecture
The lecture Option Strategies 2 by Edu Pristine is from the course ARCHIV Financial Instruments. It contains the following chapters:
- Stradle
- Bull Spread
- Bear Spread
- Butterfly
Author of lecture Option Strategies 2
Edu Pristine
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Excerpts from the accompanying material
... wants the capture the benefit of rising prices from a certain price level but is ready to give up the upside after a certain level. So both the upside & downside risks are limited. The ...
... expiry date. Here since one is selling put with the higher strike and buying puts at lower strike, he will receive initial money for entering ...
... the gain is capped at certain price level below. So here too both the upside and downside risks are limited. The strategy can be accomplished by a pair of calls or a pair of puts. Using a pair of calls: In this strategy one buys a call with certain strike price and sells ...
... date. Here since one is selling put with the lower strike and buying puts at higher strike, he has to make an initial ...
... losses if the range do not hold then one should buy butterfly spread. Butterfly spread is formed by buying a call option at lower strike at a higher strike and selling two calls at ...
... range having a decent payoff, consequently it will cost more, than a similar butterfly. 050100150200250 Stock Price ...
... rate and expiry date on same underlying asset. The structure will give profits if there is large movement in the prices of underlying asset on ...
... the losses are limited to the premium initially paid. Here, comparatively the premiums will be lower than the straddles. Anyone who believes that the prices of the underlying asset will remain range bound will look to sell strangles. His maximum profit will be ...
