Questions tagged [option-strategies]
The option-strategies tag has no usage guidance.
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Is there a sound logic for buying a portfolio of call options in the same ratio as you would buy the underlying shares?
Suppose I believe it would be profitable to build an investment portfolio by investing, say, USD 30,000 in stocks in the following ratio: 30% in shares of CompanyA, 30% in CompanyB and 40% in CompanyC....
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Calculating a Covered Call Strike with N% Probability that Shares Won't be Called Away
I'm starting to experiment with covered call strategies, and I'm trying to find the right strike price to sell for my covered calls such that I can maximize premium while being generally "...
- 123
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Optimal Covered Call Strategy [closed]
How do I compute the optimal strike / expiry / when to close or roll for a covered call strategy on a highly liquid underlying (e.g. SPY)?
- 1,275
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Simple strategies for tail risk hedging that retail investors can use
Universa Investments run by Mark Spitznagel popularized the idea of portfolio insurance (also known as tail hedge) protecting the investor against severe market declines (tail risks). By using this ...
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Equivalent combination of puts
Suppose that a certain stock is currently worth $S_0=\$61$. Consider an investor that buys
one call with a strike price equal to $K_1=\$55$, that costs $c_1=\$10$, buys another call with strike
price ...
0
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587
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What are an option's "tested" and "untested" sides? [closed]
What does 2 below mean?
Adjust what once?
What do tested and untested side mean?
teamspritemini.
2 points 3 years ago
My preference is as follows:
If Naked, 3X premium as stop ...
user31928
0
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1
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77
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What does buying back a "short strike" for .05 mean?
What does the red phrase below mean?
doougle. 7 points 3 years ago.
This is one of the "not as easy as it sounds" things about options. You always hear things like "Make money if the ...
user31928
0
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154
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Active vol strategy within a portfolio
Suppose I'd like to have 10 % of my portfolio allocated to "long volatility" by rolling straddles .
Obviously going all in on one trade implies significant risk of losing all the money. Does anyone ...
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2k
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How to normalise options? Normalise strike price, premium, tenors
I would like to normalise options, to being able to compare it. Make price of underlying symbol = 1, have same tenors, and same step for the strike price.
1) Use 1 as stock_price and scale ...
- 241
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309
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Double Call Option
A double call option allows the holder to either exercise at time $T_{1}$ or time $T_{2}$, where $T_{2}$>$T_{1}$. With corresponding strike prices $K_{1}$ and $K_{2}$, it can be shown that it is never ...
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How to model/price the risk of Covid-19 and other pandemics
How would you model and price the risk of Covid-19 pandemic? These large cost low probability events with very little history seems to pose a particular challenge when quantitatively modeling and ...
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Calculate 6 month- return for an investment [closed]
Assume that the price of DF stock went from a price of $104 on March 2 to 146 on April 1.
With a current stock price of 146,
Invest all of your amount 14,600 in the DF stock (buy 100 shares)
...
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88
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Question about the writing a call option on an existing portfolio of stocks [closed]
My question is Please discuss about the following statement
“ the advantages and disadvantages of writing a call option on an existing portfolio of stocks”
Note that
I read an article nearly ...
- 109
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1k
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Books on options trading with a practical bent?
just curious to see if anyone here has come across a book or books on options trading with the practitioner in mind? My lecture slides for instance, go through black scholes and the ins and outs of ...
- 321
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Are there any books/articles on how to use options to be long volatility (implied or realized)? [duplicate]
Given the market turmoil of late I have become fixated with this idea of using options to be long volatility (realised and implied). However, I dont know where to start, what to read, who to follow ...
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