nothingbelowthispoint.ppt

for a 200K account, 10 contract, Dec, $1650 Comex Gold, needs $95000 margin, each point up or down mean $1000 win or loss, unlimited profit potential, unlimited loss potential if we use options to replace futures, 10 contracts of Dec Gold $1600 Call options, $75 per contract, we pay $75000 premium, We have unlimited profit potential, but we will not lose more than $75000 When the price falls down below $1500, you will not be forced to close the position or margin call. 00 In the case of MF Global bankruptcy, the margin was transfer 60% ($45000, we are short $35000 -i.e margin call, or we will face position close out. Repair strategy: sell same month (Dec) 10 contracts of $1700 call options, receive $30000 premium, so we have no need to add margin, our profit limited at $55000, but we saved our position being closed out. * Only Source / Footnotes below this line Guide @2.68 Guide @1.64 Guide @1.95 Subtitle Guide @2.64 Guide @2.80 Only Source / Footnotes below this line Guide @0.22 Guide @4.69 Only Source / Footnotes below this line Why Trade Options? 为什么交易期权？ 增加收入 减小风险 减少资本和保证金 保护已或利润 分散持有股份 分散控制涉及市场范围 跟踪买入或卖出标的价 Increase Income Reduce Risk Reduce Cost and Margin Protect Profit Diversify Holdings Customize Market Exposure Target Buy or Sell Prices 期权作为商品的保险工具的潜在好处Potential Benefits of Using Options as Insurance of Futures * Arx Asset Management , LLC Copyright 2012, All rights reserved Only Source / Footnotes below this line Guide @2.68 Guide @1.64 Guide @1.95 Subtitle Guide @2.64 Guide @2.80 Only Source / Footnotes below this line Guide @0.22 Guide @4.69 Only Source / Footnotes below this line What is The Strike Price？ 什么期权执行价？ Strike Price Price Specified By Options Contract Also known as exercise price Price at which options buyers can sell (puts) futures Price at which options buyers can buy (calls) futures 期权执行价 期权合同指定价格 也称执行价 看跌期权执行价为期权买主可以卖的价格 看涨期权执行价为期权买主可以买的价格 question for Jay: how these strike prices were issued and determined * A