Sentences with phrase «index put options»

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A: On top of its own businesses» exposure to the economy, Berkshire sold some equity index put options that are marked to market every quarter, so its book value gets hit twice.

He likes to buy cheap but when he feels the market is overvalued, as he believes it is the case now, he likes to hedge the macro risks using derivatives, such as index put options, credit default swamps, and so on.

As a result, stay invested if you wish, but do what a value investor like Prem Watsa would do, namely, hedge the macro risk using, for example, long - dated index put options.

Sure, his timing was bad with some of his preferred stock purchases, and his willingness to write index put options.

To estimate the potential impact of a put option covering notional value (which currently would represent one S&P 500 index put for a $ 212,664 portfolio), I've estimated the value of S&P 500 index put options back to 1940 using the Black - Scholes model, imputing volatility prior to the 1980's based on the post-1980 relationship between the CBOE volatility index (VIX) and the volatility, absolute, and directional change in the S&P 500 at each point in time.

In our view, index put options can be enormously useful in periods where the expected market return / risk profile is severely negative.

Strategic Growth Fund remains fully hedged, with a staggered - strike position that raises the strike prices of our index put options somewhat closer to market levels, representing about 1 % of assets in option premium looking out to springtime.

Simply put, Buffett has sold long - dated insurance against the debt of specific companies (credit default obligations or CDSs, expiring between 2009 and 2013) and against declines in the world's major stock market indices (equity index put options, with the first expiration in 2019 and average maturity of 13.5 years).

There is no guarantee that the index put options included in the program will effectively protect the investor's actual portfolio holdings.

Still, at present, there are enough headwinds from valuations, fiscal strains, unsustainable monetary policy, sovereign default risks, and other factors that we expect to maintain a «line» of downside protection with index put options even if we shift to a more constructive stance.

Presently, Strategic Growth Fund remains fully hedged, with a staggered - strike position that raises the strike prices of the Fund's index put options somewhat closer to market levels, representing about 1 % of assets looking well into springtime.

Can speculators squeeze the «insurance» premium from shorting equity index put options in just the few days before expiration?

«When to Sell Equity Index Put Options» summarizes research finding that the «insurance» premium from systematically selling equity index out - of - the - money (OTM) put options concentrates during the last few days before expiration.

In their January 2017 paper entitled «The Timing of Option Returns», Adriano Tosi and Alexandre Ziegler investigate the timing of returns from shorting out - of - the - money (OTM) S&P 500 Index put options.

PUT sells a sequence of one - month, fully collateralized (cash covered) ATM S&P 500 Index put options and holds these options to expiration (cash settlement).

As I've regularly noted in recent months, our immediate outlook is essentially flat neutral for practical purposes, though we're partial to a layer of tail - risk hedges, such as out - of - the - money index put options, given that a market decline on the order of even 5 % would almost certainly be sufficient to send our measures of market internals into a negative condition.

For that reason, we would not rely on defenses that require the execution of stop - loss orders, being more inclined toward index put options, particularly given low levels of implied volatility here.

We continue to hold index put option coverage under about 90 % of our stockholdings, though primarily as a «stop loss» against any major continuation, rather than a defense against moderate declines.

The chart shows the estimated cumulative impact of an at - the - money S&P 500 index put option under various market return / risk classifications we identify.

Even here, if we can clear some element of the hostile overvalued, overbought, overbullish, rising - yields syndrome that has characterized the market, we will be open to moderate, if transitory exposure to market fluctuations, provided that we maintain a line of index put option protection against any abrupt deterioration.

However, Berkshire is not required to post collateral with respect to most of its credit default and equity index put option contracts and at September 30, 2008 and December 31, 2007, Berkshire had posted no collateral with counterparties as security on these contracts.

But what about the much larger equity index put option contracts, for which Berkshire was paid $ 4.85 billion and had suffered noncash «losses» of $ 1.9 billion through Q3?

The chart shows the estimated cumulative impact of an at - the - money S&P 500 index put option under various market return / risk classifications we identify.

That still holds us to a defensive position, but allows us to make modest changes in our hedges (shifting index put option strikes, for example) in a way that maintains a strong defense but reduces our vulnerability to blazing short - squeezes and other bursts of «risk - on» enthusiasm.

When Berkshire did the equity index put option, they exposed themselves to the risk of a mark - to - market equity movements globally.

Berkshire also provides guarantees in connection with long - term equity index put option and credit default contracts entered into by a subsidiary.

Not exact matches

The Strategic Growth Fund remains fully hedged, with the same «staggered strike» position we had at the 2007 peak, which strengthens our defense against potential market losses by raising the strike prices of our defensive put options, at a cost of just over 1 % of assets in additional put premium (which is relatively inexpensive with the CBOE volatility index currently at about 17).

When we are fully hedged, as we are at present (and provided that our long - put / short - call option combinations have identical strike - prices and expirations), the source of our returns is the performance of our favored stocks relative to the indices which we use to hedge.

To understand the effect of this modest shortfall in stock selection performance over the past 8 months, recall that when the Fund is hedged against the impact of market fluctuations (and provided that our long - put / short - call index option combinations have identical strike prices and expirations), its returns are roughly equal to:

Alternative measurements of the U.S. equity market put - call ratio are total options, index options and individual equity options.

Both the VIX volatility index and the «put / call» ratio on the options market are signalling the sort of complacency levels seen at past peaks.

A long put is an options strategy in which a put option is purchased as a speculative play on a downturn in the price of the underlying equity or index.

Many HSA providers offer the option to put money in an investment account with several fund options, including mutual funds and low - cost index funds.

The VIX, a measure of the expected equity - market volatility as determined by put and call prices on S&P 500 Index options, trailed lower in 2017 and remains well below its historical average.

The CNN Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 greed.

The leading performance benchmark for this strategy is the CBOE S&P 500 PutWrite Index (PUT), an index that measures the performance of a hypothetical portfolio that sells one - month S&P 500 ® Index (SPX) put options against collateralized cash reserves -LSBIndex (PUT), an index that measures the performance of a hypothetical portfolio that sells one - month S&P 500 ® Index (SPX) put options against collateralized cash reserves -LSB-.PUT), an index that measures the performance of a hypothetical portfolio that sells one - month S&P 500 ® Index (SPX) put options against collateralized cash reserves -LSBindex that measures the performance of a hypothetical portfolio that sells one - month S&P 500 ® Index (SPX) put options against collateralized cash reserves -LSBIndex (SPX) put options against collateralized cash reserves -LSB-.put options against collateralized cash reserves -LSB-...]

And if you're an option - seller, either with cash - secured puts or covered calls, then the additional volatility of the equal weighted indices can be turned from a disadvantage into an advantage.

They each month sell nearest out - of - the - money S&P 500 Index call and put options across multiple economically priced strikes and update the overlay intramonth if new economically priced strikes become available.

In one interesting recent trade, a client used put options on iShares S&P / TSX Capped Energy Index ETF (XEG), presumably as downside protection on their energy stock portfolio.

Customer Service: Live Chat / Email / Telephone Languages:: English, Portuguese, Spanish, German, Russian, French Trading Options: Call / Put, Long Term, Pairs, Fast Trading, One Touch Assets: Currencies, Stocks, Indices, Commodities Early close: Yes Expiry Times: 60 seconds, minutes — 3 mins, 5 mins, 10 mins etc, hourly, daily, weekly, monthly, end of the year Deposits and Withdrawals: Credit cards, debit cards, wire transfer, eWallets Withdrawal Time: 3 days Demo account: No

These long - term options provide the holder the right to purchase, in the case of a call, or sell in the case of a put, a specified number of stock shares (or an equity index) at a pre-determined price up to the expiration date of the option, which can be three years in the future.

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However, the Fund may experience a loss even when the entire value of its stock portfolio is hedged if the returns of the stocks held by the Fund do not exceed the returns of the securities and financial instruments used to hedge, or if the exercise prices of the Fund's call and put options differ, so that the combined loss on these options during a market advance exceeds the gain on the underlying stock index.

Specific strategies for «leveraging» or increasing stock market exposure may include buying call options on individual stocks or market indices and writing put options on stocks which the Fund seeks to own.

The Strategic Growth Fund can be viewed as being hedged with slightly in - the - money put options, or alternatively, as having a full hedge, plus a position in slightly out - of - the - money index call options (because of how options work, those descriptions are essentially identical).

Jin bought put options on several holdings, including iShares S&P / TSX 60 Index Fund (TSX: XIU), which tracks large - cap Canadian stocks, as well as on a couple of banks and energy stocks.

If you're trying to help protect your stocks from a market downturn, you might think about purchasing puts or options on an index that tracks the type of stocks in your portfolio.

Short selling and put options are used to speculate on a potential decline in a security or index or hedge downside risk in a portfolio or stock.

Your strategy could involve something complicated like trading options or something simple like putting $ 100 into an index fund every month.