By Blom J.
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Extra resources for Coulda Woulda Shoulda
Is he or she able to follow the scenario and is it generating new ideas? Moving on, we will get a healthy dose of the thought processes involved in position adjustment in general, and we will see how positions evolve in Options Metamorphosis. The reader will then be prepared to delve into Chapter 3 for the “Nuts and Bolts of Options”, a more in-depth look into the usefulness of the Greeks. TRADING BARRAGE Gil Bates thought XYZ was a good value. It was down by over 50% from its 52 week high in July and Gil, fully clothed, began writing (selling short) 10 August 50 puts naked.
2001 Charles M.
Exhibit 2–12 contains explanations to the graphs in Exhibit 2–11. Strategies are presented in the form of a flowchart that starts in the center of the diagram with a graph of a long underlying position. ©2001 Charles M. com Chapter 2 A Just Cause for Adjustments 46 EXHIBIT 2–11 Options Metamorphosis The square indicates that there is a choice of four directions in which to go. Small investors, brokers, and institutional hedgers will find this exercise particularly useful. An initial hedge of selling calls or buying puts can take on one of four alternative forms: 1.