Maand: oktober 2012

Disaster hedging strategies abound as tail-risk fears rise

Disaster hedging strategies abound as tail-risk fears rise
One simple, but expensive approach would be buying put options that offer a guarantee against any downside risk if stock prices slump below a set level. But the effectiveness of this strategy is damningly weak, the study's author, Ric Thomas, head of …
Read more on Financial Times

Porsche Option Data May Not Have Swayed BNP, Court Told
BNP Paribas SA (BNP)'s 2009 decision to lend money to Porsche SE may not have been decisively influenced by all of the details of an option strategy the carmaker used in its Volkswagen AG takeover bid, a bank official testified. Juergen Schlangenotto …
Read more on Businessweek

AEX versus IBEX

AEX versus IBEX
Let op Ga niet experimenteren met soorten van (combinaties van) financiële instrumenten. De waarde van beleggingen is immers aan kleine, maar ook aan grote fluctuaties (met name in het geval van opties) onderhevig. In het geval van een optiestrategie …
Read more on Iex.nl

Option Strategy

Sediment Strategies: Choosing a Sediment Management Option for Dam Removal
Four options were considered for managing sediment during the removal of a large dam in the western U.S. The option chosen – called the retained sediment method – involves leaving sediment in place and rerouting the river around the dam site. By Peter L.
Read more on HydroWorld

How Options Saved My Google Trade: Najarian
I was riding that rally with call spreads, an option strategy that lets you really leverage a pop. But this morning, the options paper showed traders jumping off the bandwagon. Our data systems at OptionMonster detected heavy selling in the October 800 …
Read more on CNBC.com

Abbott Laboratories: An Extra 31% With This Low Risk Technique

Abbott Laboratories: An Extra 31% With This Low Risk Technique
However, one should always hedge oneself just in case the situation takes a turn for the worse, and that is where the bull put spread comes into play. You simultaneously sell one out of the money put and purchase one put that is farther out of the …
Read more on Seeking Alpha

Retail ETF draws big put spread
While the latter was done against greater open interest, it appears that the trader is closing a long put position and opening a new put spread in November. The trader spends a net $ 0.10 to get downside exposure in the XRT to $ 58. This could be an …
Read more on optionMONSTER Research (registration)

Yahoo! Bear Bets on Post-Earnings Struggles
Digging deeper, it seems one skeptical speculator used a number of puts on Friday to construct a bear put spread in the November series of options. Specifically, one block of 17,250 November 14-strike puts were sold for $ 0.07, while a symmetrical block …
Read more on Schaeffers Research

A Safe (and Permanent) Income Alternative to Dividend Stocks

A Safe (and Permanent) Income Alternative to Dividend Stocks
A bear call spread is a credit spread composed of a short call at a lower strike and a long call at a higher strike. The nature of call pricing structure tells us that the higher strike call we are buying will cost less than the money collected from …
Read more on NASDAQ

A Volatility Play For First Solar's Earnings On Monday
If the stock finishes the week above $ 28, the put spread will expire worthless, however the call spread will be worth $ 3.00, a gain of 78.6%. If the stock finishes below $ 20, the call spread will be worthless, but the put spread will provide us with …
Read more on Seeking Alpha