Sentences with phrase «slightly out of the money options»

Assuming the Reddit investment club wants to sell at - the - money or slightly out of the money options, the way to maximize time premium capture with this portfolio is to sell the following June call options (note we aren't covering ORAN or TLK because the June options don't pay enough to make it worthwhile; one could make the same argument for MCD but we decided to leave it in since it's 3.5 % out of the money):

Not exact matches

While options that are 5 - 10 % out of the money will have less value than those that are just slightly out of the money, the higher volatility should make the puts valuable enough to make the strategy worthwhile.

When volatility is relatively high options prices will usually be slightly higher, so out of the money put options should be a little more expensive than during times of lower volatility.

By selling just slightly out of the money puts, you not only increase the premium you receive, but you also increase the profit potential if the options ultimately expire worthless.

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).

Note that each of the above options are slightly out of the money.

The call options written are slightly out of the money and are rolled forward every month upon expiry.

Buy Downside Protection — buying a put option that is only slightly out - of - the - money.

I read Jay Adkisson's book on Asset Protection that other folks were touting as the bible on the subject & I've got to say it is a better perspective than anything else I've read.One thing he harps on in his book is if a person uses a professional that puts out marketing materials stressing the use of the strategy for asset protection then it may get drug up by the litigator in effort to try & invalidate the instrument so that's another super exotic reason I'd be a little leery to have Tim Berry's firm tagged on my option docs.Regardless I'm convinced paying his consulting fee will be money well spent.Hopefully BP will help me gather a slightly better understanding so I ask more prudent questions when I do pony up for some hour (s) of his time.Thanks!