For the upcoming half year,Michael Stevens pondered on whether he could utilize some option tactics by focusing on the archive of his blue chip stocks along with the market trend in order to enhance writing index calls, writing individual stock calls, buying individual stock puts, or buying index puts. Even improve his return and possibly to shield his paper profits.
Learning Objective:
To provide exposure to the option instruments accessible (Stock Options and Index Options, Puts and Calls, Purchasing and Writing).
To provide evaluation prices of options, and exposure to the reading option table.
To provide exposure to the procedure for trading options, and learning the impacts of margin requirements, commissions, and liquidity on strategy.
Publication Date: 01/01/1991
This is just an excerpt. This case is about Finance