Trading Option Backspreads is popular PDF and ePub book, written by Adam Warner in 2011-09-13, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Trading Option Backspreads can be Read Online from any device for your convenience.
Trading Option Backspreads Book PDF Summary
This is the eBook version of the printed book. A backspread is an option spread in which a trader carries a short position in one option series and a greater quantity of long position in another option series. The backspread gives you a two-pronged bet. Since you typically structure them to yield a credit, you win small if the entire trade goes worthless. You also have extra long puts on a put backspread, and extra long calls on a call backspread, so you potentially win big if the underlying stock moves sharply beyond your strike prices. That sounds fantastic, like getting paid to buy a lottery ticket. Alas, you face risks, too. You lose if the underlying stock hovers near the strike price you own or if implied volatility of the options declines while the stock moves into unfavorable territory. Even so, backspreads provide excellent risk/reward characteristics if you want to bet on a move in the underlying stock. In this Investing Short, Adam Warner shows you how.
Detail Book of Trading Option Backspreads PDF
- Author : Adam Warner
- Release : 13 September 2011
- Publisher : FT Press
- ISBN : 9780132836333
- Genre : Business & Economics
- Total Page : 40 pages
- Language : English
- PDF File Size : 15,7 Mb
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