I've got this foolproof investment strategy that involves puts and calls and swaps - and anyway it's totally foolproof, OK?
It utilizes a proprietary hedging program with puts and calls, seeking to reduce risk and avoid sector, interest-rate and market-timing risks.
Thirdly, the wholesale banking operations, the collateralized loans, the derivative positions, the futures, puts and calls would be in their own unit.
To construct a short strangle, the trader sells an equal number of out-of-the-money puts and calls with the same expiration.
Even with this conspicuous caveat, puts and calls vied neck and neck in this week's action, with 30, 273 calls trading against 24, 342 puts midweek.
While Ansbacher sells both puts and calls, trying to stay market neutral, often he'll tweak the weightings using a homespun metric to anticipate market moves.
While Ansbacher sells both puts and calls, trying to stay market neutral, often he'll tweak the weightings using a homespun metric to anticipate market moves (see box).
One email writer bought both puts and calls predicting that he would make money if Apple earnings were good and he would make money if Apple earnings were bad.
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Its puts and calls are typically exercisable up to six months at prices 20% or more below (or above) the market values of the underlying securities at the time the options are bought.
In mathematically complicated ways, market interest rates are built into the pricing of derivatives like puts and calls, and with higher rates the terms of a structured note can be made more appealing to the naive investor.
You need to be a high roller to get a flex option in Chicago, but if you want to book a loss on your 1, 000 shares of Apple you could get the same effect using garden-variety puts and calls.
Unfortunately, there is a limit to how simple I could make it, and I had to assume that readers have a basic familiarity with what puts and calls are, how they work, and the risks involved in using them.
They understood and calculated volatility, perhaps not so precisely as the Black-Scholes model that later garnered a Nobel Prize in economics, but good enough to get by and not misprice quotes on the puts and calls they made markets in.
There are a bunch of exceptions for small businesses, retirement assets and other circumstances, as well as adjustments related to calls, puts and straddles.
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Fresh prints in call and put options cropped up this morning, with investors favoring calls slightly over puts, and overall volume topping 32, 700 contracts in early-afternoon trade.
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Ansbacher sells only short-term calls and puts--expiring in six weeks or less--that are out of the money.
The transactions were not spread against one another, but the short selling of both calls and puts effectively mimics a short strangle.
If your portfolio already contains options such as calls and puts which have non-linear return characteristics, the calculations will also be thrown off.
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In the 1990s he figured out that it was probably a lot smarter to sell options than to be a buyer of calls and puts.
She rejects the claims by the Fire Brigades Union (FBU) that cutting the number of fire stations means it takes longer to answer emergency calls and puts lives at risk.
The steep pullback in the price of the underlying saw heavier-than-usual activity in WebMD calls and puts, with intraday volume rising to 14, 800 in early-afternoon trade against overall open interest of 29, 100 positions.
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The July and August contracts saw heaviest volume at the 42.5 call and 37.5 strikes, which may well have been the implementation of short strangle trades, in which investors sell equal amounts of calls and puts.
Contrarians betting on a rebound took to multiple expiries, buying calls and selling puts in the August contract, as well as initiating bullish spreads in longer-dated contracts.
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Remember that VIX calls and index puts are both often utilized as hedges against market weakness, and that a rise volume for both could be a sign that institutional traders are growing more bullish.
Instead, it calls the contact and puts the two in touch.
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The position is typically constructed by purchasing at-the-money puts and selling at-the- money calls in equal numbers at the same strike with the same expiration date.
In the tables below, I found stocks that were up for the year, despite an increase in the amount of short interest, AND more puts bought to open than calls.
Roughly 43, 600 calls and 27, 400 puts traded on Thursday, with traders focusing heavily on August options.
In this case, we paid up for puts, and offset the cost by selling expensive calls.
Special Offer: NFLX puts paid off in spades and so did AAPL calls.
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