108 lines
3.3 KiB
Plaintext
108 lines
3.3 KiB
Plaintext
Index
|
||
Calendar spread, put, 333-335 (see also Put spreads,
|
||
basic) 333-335
|
||
Calendar and ratio spreads, combining, 222-229
|
||
choosing spread, 225-226
|
||
pricing model, using, 225
|
||
delta-neutral calendar spreads, 227-228
|
||
in-the-money, 228
|
||
follow-up action, 226-227, 229
|
||
probabilities, good, 226-227
|
||
out-of-the-money call spread, 222-225 (see also
|
||
Calendar and ratio spreads, combining, ratio
|
||
calendar spread)
|
||
ratio calendar spread, 222-225
|
||
collateral requirements possibly large, 223-224
|
||
profitability of, 227
|
||
Calendar straddle, 348-350 (see also Spreads combining
|
||
calls and puts)
|
||
Call arbitrage, 444 (see also Arbitrage)
|
||
Call bull spread, effect on of implied volatility changes,
|
||
767-775
|
||
Call buying, 95-117
|
||
advanced selection criteria, 103-107
|
||
overpriced/underpriced calls, 106-107
|
||
time value premium and volatility trading, 106-107
|
||
volatilities of underlying stock, 103-106
|
||
follow-up actions, 107-117
|
||
bull spread, 110-111, 113-116, 117
|
||
calendar spread, creating, 116-117
|
||
commissions, 108
|
||
defensive action, two strategies for, 112-117
|
||
locking in profits, four strategies for, 108-111
|
||
"mental" stop to cut losses, 107
|
||
rolling down strategy, 112-116
|
||
rolling up, 109-110
|
||
frustrations, 107
|
||
mathematical calculations of volatility, applying, 47 4
|
||
option to buy, selecting, 101-103
|
||
day trading, 101-102
|
||
intermediate-term trading, 102-103
|
||
long-term trading, 103
|
||
short-term trading, 102
|
||
time horizon as criterion, 101
|
||
risk and reward, 97-101
|
||
delta, 99-101
|
||
hedge ratio, 99-101
|
||
intermediate-term call most attractive, 98
|
||
option pricing curve, 99
|
||
timing, certainty of, 98-99
|
||
simplest form of option investment, 95
|
||
strategies, other, 118-131 (see also Call buying
|
||
strategies)
|
||
why buy, 95-96
|
||
and LEAPS, 95
|
||
985
|
||
Call buying strategies, 118-131
|
||
altering ratio oflong calls to short stock, 128-131
|
||
protected short sale, 118-122
|
||
at-the-money or out-of-the-money as protection,
|
||
120
|
||
follow-up action, 122
|
||
margin requirements, 121
|
||
reverse hedge, 123-128, 130, 131
|
||
follow-up action, 126-128
|
||
limited loss potential and unlimited profit poten
|
||
tial, 123, 128
|
||
trading against the straddle, 126-127
|
||
volatile stock preferred, 126
|
||
simulated straddle, 123-128 (see also Call buying
|
||
strategies, reverse hedge)
|
||
summary, 131
|
||
"synthetic" strategies, 118
|
||
put, 118-121 (see also Call buying strategies, pro
|
||
tected short sale)
|
||
Call option price curve, 10-13
|
||
Call option strategies, 37-241 (see also under particular
|
||
heading)
|
||
bear spreads using call options, 186-190
|
||
bull spreads, 172-185
|
||
butterfly spreads, 200-209
|
||
calendar spreads, 191-199
|
||
calendar and ratio spreads, combining, 222-229
|
||
call buying, 95-117
|
||
call buying strategies, 118-131
|
||
covered call writing, 39-94
|
||
diagonalizing spread, 236-241
|
||
naked call writing, 132-145
|
||
ratio call spreads, 210-221
|
||
ratio call writing, 146-171
|
||
reverse spreads, 230-235
|
||
summary, 241
|
||
Call options:
|
||
assignment of, 7
|
||
Call writing, applying mathematical calculations of
|
||
volatility to, 4 72-4 7 4
|
||
Capitalization-weighted indices, 494-497
|
||
divisor, 494-496
|
||
float, 494-495
|
||
largest market value stocks have most weight, 496
|
||
most prevalent, 497
|
||
Cash-based futures, 653
|
||
Cash-based options, 500-506 (see also Index option
|
||
products)
|
||
European versus American exercise, 501-504
|
||
Cash-based put writing, 294-295
|
||
Cash dividend role of underlying stock as factor in
|
||
option price, 14-15
|
||
Cash settlement futures, 653 |