Options Installment Strategies Long-Term Spreads for Profiting from Time Decay /

• Main Author: Thomsett, Michael C. (Author, http://id.loc.gov/vocabulary/relators/aut)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Cham : Springer International Publishing : Imprint: Palgrave Macmillan, 2018.
• Edition: 1st ed. 2018.
• Subjects: Investment banking.; Securities.; Risk management.; Investments and Securities.; Risk Management.

 An "installment strategy" in its most basic form, combines two options, one long-term position and one short-term. This strategy is designed as a conservative, no-cost method to either eliminate risk for future trading when stock is owned; or to fix the price for a future purchase of the underlying security. Portfolio managers and experienced individual traders face a chronic problem - risk versus time. This goes beyond the well-known time decay of options and expands to the ever-present market risk to an underlying security. How do you execute a successful, conservative strategy and eliminate or reduce market risk? In this book, a range of effective and creative strategies set out a conservative hedging system. This involves the combination of long-term long positions offset by short-term short positions in various configurations.Options Installment Strategies presents variations on the well-known calendar spread and demonstrates how specific strategies work well in short-term swings and even during extended periods of consolidation. 

 1. Chart-Based Trade Timing -- 2. Proximity and Risk -- 3. Picking the Right Stock -- 4. Timing with Well-Selected Technical Signals -- 5. Long-Term Market Risk Elimination -- 6. Long-Term Contingent Purchase -- 7. Short Options and Levels of Risk -- 8. Alternative Offsets Beyond Short Calls or Short Puts -- 9. Combining the Short Offset Alternatives -- 10. Expanding the Strategies -- 11. Managing Potential Losses -- 12. Recovery Strategies -- 13. The Flexibility of Options Hedging.