Six strategies: covered calls, naked puts, bull put spreads, bull call spreads
, bear call spreads
and bear put spreads
I've stopped buying stocks for now, although I'm getting ready to buy call spreads
to capture the rise when the market resumes its rally.
In practice, traders prefer negotiating call spreads
, further limiting their associated payoffs.
One version of CAT risk securities are the CAT call spreads
currently traded on the Chicago Board of Trade.
Amid much fanfare, the Chicago Board of Trade (CBOT) launched catastrophe insurance futures contracts (CAT futures) in 1992 and catastrophe insurance futures call spreads
(CAT spreads) in 1993, with contract values linked to the loss ratios compiled by the Insurance Services Office (ISO).
The Fund will generally write call spreads
and put spreads that are "out of the money," meaning that the exercise price of call options sold generally will be above the current level of the index when written and the exercise price of put options sold generally will be below the current level of the index when written.
Jud also looks at recent options activity in Charles Schwab (SCHW) and United States Steel (X), which respectively saw heavy trading on the July 18 calls and July 33/40 call spreads
Jared and Carrie also look at the CBOE SPX Volatility Index (VIX) and analyze options activity on Gap (GPS), which saw short-term call spreads
trading ahead of same-store sales results.
The last two webinars, on cash-secured puts and vertical call spreads
, attracted hundreds of attendees each, quickly making the series among the most-popular webinars in the options space.
Summary of Commodity Hedges Purchased on November 21, 2006 (all hedges are settled monthly): Houston Ship Channel Index Natural Gas Call Spreads
Call Strike (Per MMbtu) Call Volumes Bought Sold (MMbtu/d) 2007 $8.
Lions Gate may also decide to use a portion of the proceeds to repurchase its common shares in the future, which may include the purchase and/or sale of calls and/or call spreads
to limit dilution from the conversion of the notes.
In today's column, we're going to make this option play even more discernible by analyzing a hypothetical short call spread
on tanker titan Nordic American Tanker Shipping Limited (NYSE: NAT).