All Questions
Tagged with option-strategies spread-options
7
questions
-1
votes
1
answer
209
views
Why does bull call spread shows higher payoff than bull put spread?
I am trying to compare bull call spread and bull put spread for equity index option. For the options where the put call parity holds, I am getting a different payoff for bull call spread and bull put ...
- 65
1
vote
0
answers
273
views
Valuing Option Credit Spreads
I'm trying to come up with a metric to value and compare spreads. One way that I was doing this was to compute the Expected Value of the spread.
To calculate the expected value I used the following ...
- 141
1
vote
1
answer
427
views
Call spread hedge
I'm trying to understand how a call spread is used for FX hedging. The example that my book gives is when we have USD receivables in 12 months which we want to convert to EUR and we want to hedge ...
- 23
0
votes
0
answers
497
views
Understanding delta based strike selection in an Iron Condor
I am reading a small book on the proper use of Iron Condors (link). I do not use these strategies as I have had a very hard time being profitable on them. This book mentions some strategies to ...
- 171
2
votes
2
answers
403
views
Calendar spread: What are the worst cases?
I am looking to solely make use of the theta decay and trying to overcome the effects of delta and Vega.
If,
I sell ABC Feb OTM (strike price X) with 3 x 10 = Rs. 30 credit and buy ABC Mar OTM (...
6
votes
2
answers
6k
views
Why a calendar spread is a preferred strategy in a low volatility period
What is it about a calendar spreads opposed to other spreads (e.g vertical spread) that makes it such a popular strategy for a period of low implied volatility?
Is it that when low volatility turns ...
- 1,404
2
votes
2
answers
590
views
What is most reasonable approach to determine side of a multi-leg options order?
Say, 4-legged multi-leg options order with below leg
...
- 155