Options Investment Strategies
How do you get invested in market volatility $VIX
There this site Vix and more which i came across as being a good guide to options and all things volatility of the market. This week there is an article on how one can take advantage of volatility as a hedging function or as an opportunistic bet: Fortunately, there are a number of VIX derivatives [...]
Double Top VIX
Recently, markets have been trending aimlessly, flirting between support and resistance. Granted this is the best market for Iron Condor trades, but the volatility could easily burst any legs within a week. I have not look at any condor trades but might start looking. I met up with an old pal of mine and he [...]
Covered Bond: Solution to the crisis?
We heard about covered calls, but covered bonds? Portfolio.com have an article explaining briefly how this works: Banks have assets and liabilities. If the bank borrows money from individuals, the liabilities are called “deposits”. Alternatively, the bank can borrow money from other banks, in the interbank market, or from the Federal Reserve. All of those [...]
Understanding Options – Profit (loss) vs Price Graphs
Option overview An option is a right to buy or sell an asset for a specified price and time.Let’s say you want to by a TV on sale at Wal-Mart. You drive there only to find out that it’s "sold out". So you go to the clerk and ask for a "rain check". This "rain [...]
Butterfly Spread explained
The butterfly spread is a neutral strategy that is a combination of a bull spread and a bear spread. It is a limited profit, limited risk options strategy. There are 3 striking prices involved in a butterfly spread and it can be constructed using calls or puts. Long Call Butterfly Long butterflies are entered when [...]
