CARRY TRADE AS A TOOL OF PROFIT MAKING
Introduction
First, let’s take a look at the carry trade. In short, the carry trade is used when an investor or speculator is attempting to capture the price appreciation or [...]
Beginning options traders often are confused about the organization of option chains. This paper covers the basic concepts surrounding which options are available at any given point in time, and how that may affect the options you trade.Equity options always have options available for the current month and the following month. In addition, two more [...]
Placing iron condor spreads on the broad market indexes is a relatively conservative, non-directional trading strategy that may be used for consistent income generation. This strategy profits as long as the index trades within the channel formed by the two spread positions. It is best used during sideways or slowly trending markets.Condor SpreadsA condor spread [...]
If stocks can be compared to five-speed automobiles, stock options are F-16 fighter jets. In order to qualify for an options account, you have to state your level of experience, candidly reveal your level of liquidity, and pretty much accept that it’s your fault if you go bankrupt.
There is a reason for this. You [...]
Dynamic Hedging is the definitive source on derivatives risk. It provides a real-world methodology for managing portfolios containing any nonlinear security. It presents risks from the vantage point of the option market maker and arbitrage operator. The only book about derivatives risk written by an experienced trader with theoretical training, it remolds option [...]