derivatives strategies with technical indicators

Post on 07-Dec-2015

243 Views

Category:

Documents

2 Downloads

Preview:

Click to see full reader

TRANSCRIPT

Derivatives strategies with technical indicators

Bullish vertical spread using calls

A bull spread is created when the underlying view on the market is positive but trader would also like to reduce cost on his position.

Bearish vertical spread using puts

Strangle

• An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset.

• This option strategy is profitable only if there are large movements in the price of the underlying asset.

Long strangle

When there is a large movement of marketprice in either direction.

top related