About this book
An “installment strategy” in its most basic form, combines two options, one long-term position and one short-term. This strategy is designed as a conservative, no-cost method to either eliminate risk for future trading when stock is owned; or to fix the price for a future purchase of the underlying security.
Portfolio managers and experienced individual traders face a chronic problem – risk versus time. This goes beyond the well-known time decay of options and expands to the ever-present market risk to an underlying security. How do you execute a successful, conservative strategy and eliminate or reduce market risk?
In this book, a range of effective and creative strategies set out a conservative hedging system. This involves the combination of long-term long positions offset by short-term short positions in various configurations.Options Installment Strategies presents variations on the well-known calendar spread and demonstrates how specific strategies work well in short-term swings and even during extended periods of consolidation.
- DOI https://doi.org/10.1007/978-3-319-99864-0
- Copyright Information The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2018
- Publisher Name Palgrave Macmillan, Cham
- eBook Packages Economics and Finance
- Print ISBN 978-3-319-99863-3
- Online ISBN 978-3-319-99864-0
- Buy this book on publisher's site
- Industry Sectors
- Finance, Business & Banking