SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jt101 who wrote (2210)7/18/2004 7:53:16 AM
From: OX  Read Replies (1) of 2241
 
both methods are technically equivalent. but why do you buy such ITM calls??
usually one would short the stock and buy ATM or slightly OTM calls... which is usually more equivalent to buying an ATM put. u could also try shorting and buying 2 OTM calls. try to match the "delta" of the options to the common (stock) to be hedged. (ATM options are typically 0.5, stock is typically 1.0) find a good book on options and read up about "delta" and equivalent strategies.

(where the heck is Dan? he's usually all over this type of Q :-)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News