Clik here to view.
How to Hedge a Portfolio with Put Options
There are 2 good reasons to buy put options: because you think they are cheap because you want downside protection. In the latter case, you are looking to use the skewed payoff profile of the put...
View ArticleClik here to view.
How to Find Cheap Options to Buy and Expensive Options to Sell
If you want to make money trading, you’re going to need a way to identify when an asset is likely to be cheap and when it is likely to be expensive. You want to be a net buyer of the cheap stuff and a...
View ArticleClik here to view.
Find Cheap Options for Effective Crash Protection Using Crash Regressions
One way we can quantify a stock’s movement relative to the market index is by calculating its “beta” to the market. To calculate the beta of MSFT to SPY (for example) we: calculate daily MSFT returns...
View ArticleClik here to view.
Portfolio Hedging with Put Options
Read the previous parts of this 101 series on options: Options are just options – why are they valuable? Options 101: Understanding the basics The value of an option at expiration Long options payoff...
View Article