tailieunhanh - Trading Strategies Profit Making Techniques For Stock_10

Tham khảo tài liệu 'trading strategies profit making techniques for stock_10', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Ratio Spreads 241 If you have a bullish ratio call spread then holding the position makes sense. The UI price has moved lower but you are now looking for the market to move in your direction. Therefore your position should begin to show a profit if your market opinion is correct. On the other hand you will not want to hold the position if you have a bearish ratio spread. If you initiated a bearish ratio spread then you should consider liquidating the position. There is never any reason to hold a bearish position if you are bullish. The most aggressive approach would be to liquidate the short options or buy more calls. This would shift the position to a net long call position. Hopefully you are adjusting the position because of newfound bullishness not because you lost money due to a poor adjustment to the ratio because of the higher prices. If you are adjusting because you are now bullish you might have a slight profit in the trade because of the decay in the time premium. Thus you will be shifting to a long call position with a profit that in effect raises the break-even point. One problem with this tactic is that you likely initiated the original ratio spread with little time left before expiration. This means that you will be buying time premium when time is working significantly against you. If you expect prices to remain about the same you could 1. Hold the position if profitable or 2. Roll down if unprofitable. If the position is profitable you are likely holding a bearish ratio spread and holding the position can make sense. Holding the position will mainly accomplish the goal of capturing the time premium on the short options. If the position is unprofitable you are likely holding a bullish ratio spread and rolling down to lower strike prices might help recover some of the losses. This is basically a tactic to try to maximize the time premium that you capture. Thus the short options should be at-the-money whereas the long options should be in-the-money. If