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OverviewAn “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 strategieswork well in short-term swings and even during extended periods of consolidation. Full Product DetailsAuthor: Michael C. ThomsettPublisher: Springer Nature Switzerland AG Imprint: Springer Nature Switzerland AG Edition: 1st ed. 2018 Weight: 0.454kg ISBN: 9783030404208ISBN 10: 303040420 Pages: 192 Publication Date: 20 February 2020 Audience: Professional and scholarly , Professional & Vocational Format: Paperback Publisher's Status: Active Availability: Manufactured on demand  We will order this item for you from a manufactured on demand supplier. Table of ContentsTable of Contents Preface – Why a Contingent Method? List of Figures and Tables Chapter 1 – Chart-Based Trade Timing The Key to Profitable Trades Advantageous Price Levels Price Patterns Candlesticks (Eastern) Western Price Indicators Non-price signals Strong Fundamental Trends Chapter 2 – Proximity and Risk Proximity and Moneyness Proximity to Expiration Proximity of Price to Resistance or Support Strongest Reversal Proximity Proximity in Consolidation Trends Risks in Every Strategy Collateral Requirements Options and Market Risk Chapter 3 – Picking the Right Stock Fundamental Risk The Effect of Fundamental Trends on Options Risk Contingent Purchase and Stock Selection Contingent Sales as Risk Hedges of Stock Dividend Yield and Trends Debt to Total Capitalization Ratio and Trend P/E Annual Ranges Revenue and Earnings Trends Chapter 4 – Timing with Well-Selected Technical Signals Entry and Exit Timing Resistance and Support Bollinger Bands T-Line Gaps and Tops or Bottoms Rounded Tops or Bottoms and Island Reversals Candlestick Reversal Candlestick Continuation Volume Indicators Momentum Oscillators Moving Averages Chapter 5 – Long-Term Market Risk Elimination The Nature of Underlying Risk The Risk Hedge with Long Puts The Trade: Long-Term Long Put and Short-Term Short Positions Calculating the Point of Risk Elimination Possible Outcomes Chapter 6 – Long-Term Contingent Purchase Locking in the Future Price The Risk Hedge for Future Purchase Calculating the Point of Risk Elimination Possible Outcomes Chapter 7 – Short Options and Levels of Risk Unavoidable Risks Covered Calls for Risk Reduction Uncovered Puts for the Same Risk Profile Uncovered Calls and Varying Risk Levels Picking Calls or Puts Based on Price Proximity Exploiting Time Decay Chapter 8 – Alternative Offsets Beyond Short Calls or Short Puts Synthetic Stock Vertical and Diagonal Spreads Straddles and Strangles Iron butterfly Closing the Long-Term Option at a Profit Chapter 9 – Combining the Short Offset Alternatives Current price proximity Historical Volatility Combining the Alternatives Multiple Increments and Combinations Chapter 10 – Expanding the Strategies Rolling techniques Long Collars Long-Term Long Straddles and Strangles Short-Term Short Straddles, Strangles and Spreads Covered straddle and strangles Straps and Strips Multiple Option Contracts Chapter 11 – Managing Potential Losses Short Positions at Risk The Advantage of Time Decay Reducing Risk Exposure: Moneyness and Timing Avoiding Ex-Dividend Periods Avoiding Earnings Week Short-Term Expiration Advantages Chapter 12 – Recovery Strategies Protective and Responsive Loss Offsets Selective Rolling Closing and Taking Losses Entering New Positions with Higher Risks Expanding Exposed Spread Positions Chapter 13 – The Flexibility of Options Hedging The Hedging and Leverage Advantage Installment Variations Based on Changing Conditions Adjusting to Sudden Price Movement Reducing Risks with Long-Term Hedging Bibliography IndexReviewsAuthor InformationMichael C. Thomsett has been writing for a living since 1978 and has published more than 90 books. These include 12 options books. His best-selling Getting Started in Options has been published in ten editions and sold more than 300,000 copies. The 10th edition has been renamed Options (The Essential Guide for Getting Started in Derivatives Trading). He also has developed and presented options webinars, and operates a financial education website, Money Craft. Thomsett is a frequent speaker at trade shows and investment conventions. He blogs on Seeking Alpha, Options Money Maker, Steady Options and other social media. Tab Content 6Author Website:Countries AvailableAll regions |
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