Add training workflow, datasets, and runbook
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Index spreading (continued)
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spreads using options, 583-584
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options, using in index spreads, 584-587
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striking price differential, 587
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volatility differential, 587
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summary, 588
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Value Line Index, 579, 582
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Inflection points, 792-793
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Insider trading, 7 45-7 46
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Institutional block positioning, 482-485 (see also
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Mathematical applications)
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Institutional use of market basket strategies, 556
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Inter-index spreading, 579-587 (see also Index
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spreading)
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"Interest play" strategy, 438-439
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Interest rates, effects of on LEAPS, 371-37 4
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Intermarket futures spreads, 700-704
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Intermediate-term trading, call buying and, 102-103
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Intramarket futures spreads, 697-700
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iShares, 638
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Japanese Nikkei 225 Index, 532, 601
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Kicker, 136, 169
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LEAPS (Long-term Equity AnticiPation Securities), 5,
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367-410
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basics, 368-369
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expiration date, 368
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standardization less, 368
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striking price, 369
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type,368
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underlying stock and quote symbol, 368
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and call buying, 95
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definition, 367
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dividends, effects of, 371-37 4
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to establish collar, 279
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history, 367
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and implied volatility, 735, 736
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index options, 505-506
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interest rates, effects of, 371-372
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and long-term trading, 103
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options, 616-617
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popularity, 367
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pricing, 369-37 4
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rho, 864-865
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selling, 390-403
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assignment, early, 401-402
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covered writing, 390-396
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incremental return, 391
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rolling down, 394
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Index
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short LEAPS instead of short stock, 400-402
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straddle selling, 402-403
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uncovered call selling, 399-400
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uncovered LEAPS, 396-399
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whipsaw, 403
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short-term options, three sets of comparison with,
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374-375
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and speculative option buying, 382-390
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buying "cheap," advantages of, 385-386
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delta, 387-390
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less risk of time decay, 383-385
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spreads using, 403-409
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backspreads,407-408
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bull spread using calls, 403-404
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calendar spreads, 408-409
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diagonal, 405-407
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strategies, 375-382
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buying LEAPS as initial purchase instead of buy-
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ing common stock, 378-381
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LEAPS instead of short stock, 382
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margin, using, 380-381
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protecting existing stock holdings with LEAPS
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puts, 381-382
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as stock substitute, 375-378
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summary, 409-410
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symbols, 26-27
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writing against, 91, 94
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"Leg" into spread, 171
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out of spread, 180, 207
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out of put calendar spread, 335
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Letter of guarantee, 43
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Limit bid, 679
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Limit offered, 680
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Limit order, 28, 33
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"Locals," 509
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Locked-in loss, 73-76
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Locking in profits, four strategies for, 108-1 11
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Lognormal distribution of stock prices, 783-81 I
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(See also Stock prices, distribution oO
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Long-term Equity AnticiPation Securities (LEAl'Si
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See also LEAPS
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Long-term trading, call buying and, 103
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Maintenance margin, 509
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Major Market Index (XMI), 499
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Market basket of stocks, 531-537 (see also Stock ind,·\
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hedging strategies)
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Market dynamics, nonquantifiable, as influt·11t·,· 011
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market price, 15
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Market-makers, 22
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Market order, 32
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Market not held order, 33
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"Married" put and stock for tax purposC's, !J:l I
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