106 lines
3.1 KiB
Plaintext
106 lines
3.1 KiB
Plaintext
986
|
|
Chicago Board Options Exchange (CBOE), 22
|
|
structured products listed, 618
|
|
Chicago Mercantile Exchange, 507, 509, 510, 672
|
|
option quotes, 515-516
|
|
trading limits on futures options, 680
|
|
Chicago Board of Trade:
|
|
trading limits on futures contracts, 658
|
|
trading limits on futures options, 680
|
|
Classes of options, 5-6
|
|
Closing transactions, 6
|
|
Collar, 275, 840
|
|
no-cost, 278-280
|
|
Commissions, 17-18
|
|
Concepts, advanced, 846-907 (see also Advanced
|
|
concepts)
|
|
Conservative covered write, 46
|
|
Contango, 697
|
|
Conversion, 253-255, 428-430, 431-438 (see also Put
|
|
options basics and Arbitrage)
|
|
reversal, 254, 428-430, 431-438
|
|
risks in, four, 433-43 7
|
|
summary, 437-438
|
|
Convertible security, covered writing against, 88-90, 94
|
|
Covered call writing, 39-94
|
|
definition, 39
|
|
diversifying return and protection, 66-70
|
|
"combined" write, 67-69
|
|
techniques, fundamental, 66-69
|
|
techniques, other, 69-70
|
|
execution of order, 56-58
|
|
contingent order, 57
|
|
net position, establishing, 57-58
|
|
follow-up action, 70-87, 94
|
|
aggressive action if stock rises, 71, 79-81
|
|
assignment, action to avoid if time premium
|
|
disappears, 71, 86-87
|
|
expiration, at or near, 83-85
|
|
getting out, 82-83
|
|
locked-in loss, 73
|
|
protective action if stock drops, 71-79
|
|
rolling action, 71-80 (see also Rolling action)
|
|
rolling forward/down, 83-85
|
|
spread, 76
|
|
uncovered position, avoiding, 86
|
|
when to let stock be called away, 86-87
|
|
importance, 39-42
|
|
for downside protection, 39
|
|
increase in stock price, benefits of, 40-41
|
|
profit graph, 41-42
|
|
quantification, 41-42
|
|
and naked put writing, differences between,
|
|
294-295
|
|
objective, 42
|
|
Index
|
|
PERCS (Preferred Equity Redemption Cumulative
|
|
Stock), 91
|
|
philosophy, 42-45
|
|
annual returns, 47
|
|
as conservative strategy, 46-4 7
|
|
Depository Trust Corp (DTC), role of, 43
|
|
in-the-money covered writes, 43-45, 93
|
|
letter of guarantee, 43
|
|
out-of-the-money covered writes, 43-45, 93
|
|
physical location of stock, 43
|
|
total return concept, 45-47, 60-61, 93
|
|
return on investment, computing, 47-56
|
|
compound interest, 53-54
|
|
downside break-even point, 48, 49-50
|
|
in margin accounts, 50-53
|
|
price,changesin,55-56
|
|
return if exercised, 47-48
|
|
return if unchanged, 48, 49
|
|
size of position, 54-55
|
|
static return, 49
|
|
selecting position, 58-62
|
|
downside protection, 59-60
|
|
returns, projected, 59
|
|
strategy, importance of, 60-62
|
|
total return concept, 60-61
|
|
special writing situations, 87-93
|
|
against convertible security, 88-90, 94
|
|
against LEAPS, 91, 94
|
|
against warrants, 90-91
|
|
incremental return concept, 87-88, 91-93
|
|
and stock ownership, 42
|
|
summary, 93-94
|
|
and uncovered put writing strategy, similarity of,
|
|
293-294
|
|
writing against stock already owned, 62-66
|
|
caution, 65-66
|
|
Covered pit sale, 300
|
|
Covered straddle write, 302-305
|
|
Crack spread, 702-704
|
|
Credit spread, 170, 179
|
|
Cross-currency spreads, 701
|
|
Cumulative density function (CDF), 806
|
|
Customer margin method, 5
|
|
Customer margin option requirements, 667
|
|
Day trading, call buying and, 101-102
|
|
Debit spread, 170
|
|
Definitions, 3-35 (see also under particular definition or
|
|
under Options)
|
|
Delta, 848-853, 866
|
|
calculation of by Black-Scholes model, 457
|
|
excess value, 764 |