Abstract
Inevitably, even the most conservative strategy will suffer a loss. In this case, the purpose and strength of the installment strategy should not be abandoned or questioned. Rather, traders need a set of recovery strategies to offset losses with new profits—and without increasing risk levels. Even the most basic of defensive strategies, such as rolling forward, is not always prudent. In some cases, accepting a small loss is preferable to exposure to a larger loss. After a limited loss is accepted, recovery may consist of new strategies based on the same principles: adherence to observed proximity, timing and moneyness.
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Thomsett, M.C. (2018). Recovery Strategies. In: Options Installment Strategies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-99864-0_12
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DOI: https://doi.org/10.1007/978-3-319-99864-0_12
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-99863-3
Online ISBN: 978-3-319-99864-0
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