Abstract

The first aim of this paper is to propose another way of an option strategy formation known as Short Put Ladder, describe the functions of profit in their analytical forms and propose an optimal algorithm for the use of this strategy in trading. The other goal is to propose the application of the Short Put Ladder Strategy in hedging against a price drop of the underlying asset and compare the result with the results of hedging using the known Long Combo option strategy.

Details

Title
The Short Put Ladder Strategy and its Application in Trading and Hedging
Author
Omer Faraj S Amaitiek; Soltés, Vincent
Pages
77-85
Publication year
2010
Publication date
2010
Publisher
University of Miskolc
ISSN
15893413
e-ISSN
24159883
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
1696725099
Copyright
Copyright University of Miskolc 2010