In both cases a (usually near the money) option is sold and used to partially fund the purchase of two (or more) out of the money options. Let’s see an…
Category:
Investing
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Introduction To The Long Put Strategy Options are used by investors to take advantage of a wide range of projections on the state of the market. Unlike stock investing, where…
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Introduction Options can provide investors with an extremely versatile tool that can be used to bet on market direction or changes in volatility levels. Long options positions can be initiated…
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Definition of Delta Hedging Delta hedging is a strategy in which an investor hedges the risk of a price fluctuation in an option by taking an offsetting position in the underlying…
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A diagonal spread is an options strategy that involves buying (selling) a call (put) option at one strike price and one expiration and selling (buying) a second call (put) at…
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By re-centering their positions, traders can benefit from the inherent profit associated with being long gamma and continuously re-hedging their delta exposure. The primary purpose of gamma scalping is…
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This skill is about blending analytical prowess with a dash of intuition. Think of it as chess, but the pieces are stocks, bonds, and the occasional cryptocurrency. Via Pexels…
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In a word, trading is really hard. Markets are extremely competitive. The smartest people in the world flock to financial markets looking to get rich. There are massive hedge…
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The most obvious way to demonstrate this is showing you a payoff profile (the possible path of your P&L for the trade at different underlying prices): Long Call: …
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According to a 2022 survey, you need around $2.2 million to be considered wealthy and approximately $774,000 net worth to be economically comfortable. While it is undeniable that the earlier…
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