use of call_and_put_options

Jun 28th, 2015
Studypool Tutor
Abraham Lincoln University
Price: $25 USD

Tutor description

This section will discuss the more complex option strategies and will present examples of these strategies. The previous section covered the simpler option trading strategies, mainly the buying and selling of puts and calls. These simpler strategies are usually thought of as very aggressive strategies, with high profit potential on the long side and large risk on the short side.

Word Count: 6526
Showing Page: 1/25
Section 4. Complex strategiesThis section will discuss the more complex option strategies and willpresent examples of these strategies.The previous section covered the simpler option trading strategies,mainly the buying and selling of puts and calls. These simplerstrategies are usually thought of as very aggressive strategies, withhigh profit potential on the long side and large risk on the short side.This section will examine option positions which are structured bycombining options of different terms, put and call options, or optionsand stock positions. Because they provide reduced risk, some of thesestrategies are much more conservative than the simpler strategies. Itis of the utmost importance that the trader understand the risk/rewardcharacteristics of any strategy that he or she is considering.A Note about CommissionsBecause the more complex strategies involve multiple positions,commission costs can be substantial. For this reason, it isadvantageous to keep commissions as low as possible through the useof discount brokers, etc.MarginNoteMargin rates can be viewedand/or modified through theMargin Criteria page ofBroker/Margin PropertiesFor covered positions, the user can elect to use margin for thepurchase of stock. When Use margin is selected, Cash Outlay willonly include the margin requirement for the stock and Cash ROI isbased on the margin requirement rather than the full value of thestock.Certain of the complex option strategies are cr

Review from student

Studypool Student
" Excellent work as usual "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors