Options in volatile markets: managing volatility and protecting against catastrophic risk

Practical option strategies for the new post-crisis financial market Traditional buy-and-hold investing has been seriously challenged in the wake of the recent financial crisis. With economic and market uncertainty at a very high level, options are still the most effective tool available for managing volatility and downside risk, yet they remain widely underutilized by individuals and investment managers. In Options for Volatile Markets, Richard Lehman and Lawrence McMillan provide you with specific strategies to lower portfolio volatility, bulletproof your portfolio against any catastrophe, and tailor your investments to the precise level of risk you are comfortable with. While the core strategy of this new edition remains covered call writing, the authors expand intomore comprehensive option strategies that offer deeper downside protection oreven allow investors to capitalize on market or individual stock volatility. In addition, they discuss new offerings like weekly expirations and options onETFs. For investors who are looking to capitalize on global investment opportunities but are fearful of lurking 'black swans', this book shows how ETFs andoptions can be utilized to construct portfolios that are continuously protected against unforeseen calamities. A complete guide to the increased control and lowered risk covered call writing offers active investors and traders Addresses the changing investment environment and how to use options to succeed within it Explains how to use options with exchange-traded funds Understanding options is now more important than ever, and with Options for Volatile Markets asyour guide, you'll quickly learn how to use them to protect your portfolio aswell as improve its overall performance. INDICE: Acknowledgments. Introduction. Chapter 1: Option Basics. What Are Options? Exercise and Assignment. Positions. How Options Are Traded. Options in Your Account. Chapter 2: Option Pricing and Valuation. Option Premium. Theoretical Value. Time Value. Volatility. Interest Rates. Dividends. Calls vs. Puts. Option Skews and Anomalies. Chapter 3: The Basics of Covered Call Writing. Requirements for Valid Covered Writes. Risk/Reward of a Covered Write. Calculating Potential Returns. Major Factors Affecting Call Writing Returns. Covered Writing as an Ongoing Strategy. Summing Up Covered Writing. Chapter 4: Implementing Covered Call Writing. Follow-up Actions. Behavioral Issues. Differing Approaches. Selecting Calls to Write. Risks. Basic Tax Rules for Options. Summing Up Implementation. Chapter 5: Advanced Call Writing Techniques. Writing Calls on Hot Stocks. Tax Deferral Strategies. Covered Writing on Margin. Covered Writing against Securities Other than Stock. Partial Writing, Mixed Writing, and Ratio Writing. Put Writing. Expiration Games. Option-Stock Arbitrage. Chapter 6: Basic Put Hedging. Put Hedge Basics. Advantages. Disadvantages. Behavioral Implications. Put Hedge vs. Covered Call. Hedging Against Catastrophic Risk.Chapter 7: Advanced Hedging Strategies. Put Hedge Follow-ups. Using Put Spreads to Hedge. Collars. Conclusions on Protective Option Strategies. Chapter 8: Options on ETFs. ETFs in a Nutshell. ETF Options. Covered Call Writing on ETFs. Our Put Hedge and Collar Study on SPY. Appendix: Partial List of ETFs with Listed Options. Chapter 9: Volatility and Volatility Derivatives. What Is Volatility? Using VIX as a Market Predictor. Volatility Futures. Variance Futures. The Behavior of $VIX Futures. VIX Options. VIX Option Strategies. The Future. About the Authors. Index.

• ISBN: 978-1-1180-2226-9
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 240
• Fecha Publicación: 20/07/2011
• Nº Volúmenes: 1
• Idioma: Inglés