Options Installment Strategies
Long-Term Spreads for Profiting from Time Decay
Business & Finance, Industries & Professions, Insurance, Finance & Investing, Investments & Securities
| Author: | Michael C. Thomsett | ISBN: | 9783319998640 |
| Publisher: | Springer International Publishing | Publication: | December 18, 2018 |
| Imprint: | Palgrave Macmillan | Language: | English |
| Author: | Michael C. Thomsett |
| ISBN: | 9783319998640 |
| Publisher: | Springer International Publishing |
| Publication: | December 18, 2018 |
| Imprint: | Palgrave Macmillan |
| Language: | English |
An “installment strategy” in its most basic form, combines two options, one long-term position and one short-term. This strategy is designed as a conservative, no-cost method to either eliminate risk for future trading when stock is owned; or to fix the price for a future purchase of the underlying security.
Portfolio managers and experienced individual traders face a chronic problem – risk versus time. This goes beyond the well-known time decay of options and expands to the ever-present market risk to an underlying security. How do you execute a successful, conservative strategy and eliminate or reduce market risk?
In this book, a range of effective and creative strategies set out a conservative hedging system. This involves the combination of long-term long positions offset by short-term short positions in various configurations. Options Installment Strategies presents variations on the well-known calendar spread and demonstrates how specific strategies work well in short-term swings and even during extended periods of consolidation.
An “installment strategy” in its most basic form, combines two options, one long-term position and one short-term. This strategy is designed as a conservative, no-cost method to either eliminate risk for future trading when stock is owned; or to fix the price for a future purchase of the underlying security.
Portfolio managers and experienced individual traders face a chronic problem – risk versus time. This goes beyond the well-known time decay of options and expands to the ever-present market risk to an underlying security. How do you execute a successful, conservative strategy and eliminate or reduce market risk?
In this book, a range of effective and creative strategies set out a conservative hedging system. This involves the combination of long-term long positions offset by short-term short positions in various configurations. Options Installment Strategies presents variations on the well-known calendar spread and demonstrates how specific strategies work well in short-term swings and even during extended periods of consolidation.
