And far more of the European's package is in bonuses and free shares linked to the performance of the company relative to its sector or an index, rather than in options which relate rewards solely to the movement of the company's share price.

ECONOMIST: The link between pay and performance is weak

It is then possible to derive a level of economic profit which appears statistically to be the single biggest driver of share-price movement.

ECONOMIST: Robert Wade replies

Rising levels of options implied volatility on CAT as well as bearish movement in the share price will benefit the investor by lifting premium on the puts, while the erosion of time value on the long position will work against him.

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By doing so, you protect the downside, make a few dollars, and stand a good chance of holding onto the stock if the price movement in AAPL share is not consistent with the hype surrounding the iPhone 5.

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