86 lines
2.0 KiB
Plaintext
86 lines
2.0 KiB
Plaintext
Index • 313
|
||
Optionality, 4
|
||
Options, 3–28
|
||
buying (see Exposure-gaining
|
||
strategies)
|
||
characteristics of, 4
|
||
defined, 4
|
||
directionality of, 9–20
|
||
examples of, 5–6
|
||
expiration of, 187
|
||
history of, 6–9
|
||
investment leverage from, 166–168
|
||
misconceptions about, 1
|
||
mispriced, 143–162
|
||
(See also specific types)
|
||
Options Clearing Corporation (OCC), 8
|
||
Options contracts:
|
||
counterparties for, 295n1 (Chapter 1)
|
||
examples of, 5–6
|
||
front-month, 270
|
||
private, 6–8
|
||
Oracle, 107–108, 144, 146, 148–153,
|
||
155, 157, 159–162
|
||
Organic revenue growth, 97
|
||
Out-of-the-money (OTM) options:
|
||
ATM options vs., 233–234
|
||
call vs. put, 27
|
||
collars, 258–262
|
||
defined, 13, 16, 17
|
||
investment leverage for, 171–172
|
||
levered strategy with, 180, 181
|
||
long calls, 193, 195–197
|
||
long diagonals, 235–237
|
||
long puts, 203, 204
|
||
long strangles, 205–207
|
||
and market makers, 147
|
||
pricing of, 150
|
||
protective puts, 248, 250–253
|
||
realized losses and, 187
|
||
rising volatility and, 70–74
|
||
short diagonals, 238–240
|
||
short puts, 213, 215
|
||
short strangles, 231
|
||
short-call spreads, 221–224
|
||
time decay for, 66–67
|
||
unrealized losses, 187
|
||
Overconfidence, 118–122
|
||
Overexposure, 247
|
||
Overlays, 23, 234
|
||
Owners:
|
||
cash flows generated on behalf of,
|
||
80–82
|
||
free cash flow to (see Free cash flow
|
||
to owners (FCFO))
|
||
Owners’ cash profit (OCP):
|
||
defined, 82
|
||
nominal GDP growth vs., 104–108
|
||
profitability as, 99–102
|
||
P
|
||
Parity, 288
|
||
Pattern recognition, 114–118
|
||
Peaks (business-cycle):
|
||
operational leverage in, 284
|
||
and troughs, 302–303n2
|
||
Pension funds, 135, 136
|
||
Percent delta, 169–173
|
||
Percent profit, 172–173
|
||
Percentage return, 229
|
||
Portfolio management:
|
||
for long calls, 196–201
|
||
for long puts, 204–205
|
||
for long strangles, 207
|
||
for short puts, 216–220
|
||
for short-call spreads, 228–230
|
||
Portfolios:
|
||
hedging, 251–252
|
||
investment leverage in, 174–183
|
||
Precision, false, 93, 96–97
|
||
Premium, 13
|
||
Prepaid interest, 170
|
||
Present value of future cash flows, 87–89
|
||
Pricing power, 98
|
||
Principal (financial), 168
|
||
Principals, agents vs., 131–132
|
||
Problem solving, X- vs. C-system,
|
||
115–118 |