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    Complete Hedging Formula

    Uploaded by

    vasanthshm123
    The document defines various hedging strategies and options combinations, including: 1) Covered call, covered put, bull/bear put spreads, bull/bear call spreads, straddles, strangles, calendars, diagonals, guts, strips, straps, butterflies, condors, ladders, backspreads, ratio spreads, collars, synthetic positions, combos, and boxes. 2) Each strategy involves a combination of buying and/or selling calls, puts, stocks, or futures at different strike prices and expiration dates to generate income or reduce risk. 3) The strategies can be used to take bullish, bearish, or neutral positions depending on the market

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    © All Rights Reserved
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    Complete Hedging Formula

    Uploaded by

    vasanthshm123
    16 views2 pages
    The document defines various hedging strategies and options combinations, including: 1) Covered call, covered put, bull/bear put spreads, bull/bear call spreads, straddles, strangles, calendars, diagonals, guts, strips, straps, butterflies, condors, ladders, backspreads, ratio spreads, collars, synthetic positions, combos, and boxes. 2) Each strategy involves a combination of buying and/or selling calls, puts, stocks, or futures at different strike prices and expiration dates to generate income or reduce risk. 3) The strategies can be used to take bullish, bearish, or neutral positions depending on the market

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    Complete Hedging formula

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    The document defines various hedging strategies and options combinations, including: 1) Covered call, covered put, bull/bear put spreads, bull/bear call spreads, straddles, strangles, calendars, diagonals, guts, strips, straps, butterflies, condors, ladders, backspreads, ratio spreads, collars, synthetic positions, combos, and boxes. 2) Each strategy involves a combination of buying and/or selling calls, puts, stocks, or futures at different strike prices and expiration dates to generate income or reduce risk. 3) The strategies can be used to take bullish, bearish, or neutral positions depending on the market

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Complete Hedging Formula

    Uploaded by

    vasanthshm123
    The document defines various hedging strategies and options combinations, including: 1) Covered call, covered put, bull/bear put spreads, bull/bear call spreads, straddles, strangles, calendars, diagonals, guts, strips, straps, butterflies, condors, ladders, backspreads, ratio spreads, collars, synthetic positions, combos, and boxes. 2) Each strategy involves a combination of buying and/or selling calls, puts, stocks, or futures at different strike prices and expiration dates to generate income or reduce risk. 3) The strategies can be used to take bullish, bearish, or neutral positions depending on the market

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Name and Formula for hedging & strategy

    Covered Call - Stock Buy + call Sell


    Covered Put - Sell Stock + sell put

    Bull Put Spread - Put buy + Put Sell


    Bear Put Spread - Put buy + Put Sell

    Bear Call Spread - Call Buy + Call Sell


    Bull Call Spread - Call buy + call Sell

    Straddle - Buy ATM call + Buy ATM put


    Short Straddle - Sell ATM put + Sell ATM CALl
    Covered Short Straddle - Buy Stock + Sell put + sell call

    Strangle - Buy OTM call + Buy OTM Put


    Short Strangle - Sell OTm call + sell OTM put
    Covered Short Strangle - Buy Stock + sell put(otm) + sell call(otm)

    Calendar call - Call long(n) + short call (f)


    Calendar Put - Put long (n) + Short Put (f)

    Diagonal Call - Deep ITM monthly + sell ATM weekly


    Diagonal Put - Deep ITM monthly + sell ATM weekly

    Guts - Buy ITM call + Buy ITM puts


    Short Guts - Sell ITM call + Sell ITM put

    Strip - Buy 2 ATM put + Buy 1 ATM call


    Strap - Buy 2 ATM call + Buy 1 ATM PUt

    Long Iron Butterfly - BuyOTM put+ Sell ATM put+sell atm call+ buy otm call
    Short Call Butterfly - Buy 2 ATM call + Sell otm call + sell ITM call
    Short Put Butterfly - Buy 2 ATM put + Sell otm put + sell ITM PUT
    Short Iron Butterfly - Sell lower OTM put + But ATM call & atm put + Sell Higher
    OTM call
    Long Call Butterfly - Buy Itm call + Sell 2 Atm call + sell one Otm call
    Long Put Butterfly - Buy otm put + sell 2 ATM put + Buy ITM put
    Modified Call Butterfly -Buy (ITM) call + Sell 2(ATM) calls +Sell OTM call
    Modified Put Butterfly - Buy OTM put + sell2 ATM put + Buy ITM put

    Long Iron Condor - Buy Otm put + Sell Otm put(middle)+sell Otm call(middle) + buy
    otm call
    Short Call Condor - Buy itm call + sell lower ITM + Buy HIgher OTM + Sell Very
    higher otm
    Short Put Condor - Sell Lower OTM put + Buy middle otm put + buy middle ITM put +
    Sell higher ITM put
    Short Iron Condor - Sell lower otm put + buy middle otm put + buy middle otm call +
    sell higer otm call
    Long Call Condor - Buy lower ITm call + Sell middle ITM call+ sell Middle otm call
    + Buy higher otm call
    Long Put Condor - Buy lower (OTM) put. +Sell middle(OTM)put +Sell middle(ITM) put
    + Buyhigher(ITM) put

    Bull Call Ladder - Buy itm call + sell atm call + sell otm call
    Bear Call Ladder - Sell ITM call + Buy atm call + Buy otm call

    Bull Put Ladder - Buy Otm put + buy atm put + sell ITM put
    Bear Put Ladder - Sell otm put + sell atm put + buy atm put

    Call Ratio Backspread - Sell ITM call + Buy 2 otm call


    Put Ratio Backspread - Sell ITM put + Buy 2 Otm put
    Ratio Call Spread - Buy ITM call + Sell 2 Otm call
    Ratio Put Spread - Buy ITm put + Sell 2 otm put

    Collar - Buy Stock + buy put + sell call

    Synthetic Call - buy stock(f) + buy put


    Synthetic Put - Sell Stock(f) + buy call
    Long Call Synthetic Straddle - Sell Stock + 2 buy call
    Long Put Synthetic Straddle - buy stock + 2 Buy puts
    Short Call Synthetic Straddle - buy stock + 2 Sell cal
    Short Put Synthetic Straddle - Sell stock + 2 sell put
    Long Synthetic Future - Call buy + sell put
    Short Synthetic Future - Call Sell + Put buy

    Long Combo - buy call + sell put = Stock Buy


    Short Combo - Sell call + buy put = Stock sell
    Long Box - (call buy + put sell) + (call Sell + put buy )

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