Add training workflow, datasets, and runbook
This commit is contained in:
@@ -0,0 +1,67 @@
|
||||
Option Fundamentals • 21
|
||||
-
|
||||
20
|
||||
40
|
||||
60
|
||||
80
|
||||
100
|
||||
120
|
||||
140
|
||||
160
|
||||
180
|
||||
200
|
||||
-
|
||||
20
|
||||
40
|
||||
60
|
||||
80
|
||||
100
|
||||
120
|
||||
140
|
||||
160
|
||||
180
|
||||
200
|
||||
GREEN
|
||||
GREEN
|
||||
RED
|
||||
RED
|
||||
Going long a stock (i.e., buying
|
||||
a stock).
|
||||
Going short a stock (i.e., short
|
||||
selling a stock).
|
||||
If you want to gain exposure to a stock’s upside potential by going
|
||||
long (left-hand diagram), you also must simultaneously accept exposure to
|
||||
the stock’s downside risk. Similarly, if you want to gain exposure to a stock’s
|
||||
downside potential by going short (right-hand diagram), you also must ac-
|
||||
cept exposure to the stock’s upside risk.
|
||||
In contrast, option investors are completely unrestrained in their
|
||||
ability to choose what directionality to accept or gain. An option investor
|
||||
could, for example, very easily decide to establish exposure to the direc-
|
||||
tionality of a stock in the following way:
|
||||
5/18/2012
|
||||
-
|
||||
20
|
||||
40
|
||||
60
|
||||
80
|
||||
100
|
||||
120
|
||||
140
|
||||
160
|
||||
180
|
||||
200
|
||||
5/20/2013 249 499
|
||||
Date/Day Count
|
||||
Stock Price
|
||||
749 999
|
||||
GREEN
|
||||
GREEN
|
||||
GRAY
|
||||
GRAY
|
||||
GREEN
|
||||
RED
|
||||
RED
|
||||
RED
|
||||
Why an investor would want to do something like this is completely beyond
|
||||
me, but the point is that options are flexible enough to allow this type of a
|
||||
crazy structure to be built.
|
||||
Reference in New Issue
Block a user