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  • Strategies in Derivatives

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    Gayatri Bhatia
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    The document outlines 9 strategies for trading options and futures: 1) Buy calls when the market is down, 2) Buy puts when the market is up and a correction is due, 3) Buy futures and sell calls to be bullish while hedging downside, 4) Use bull spreads when the market is in a narrow range, 5) Use calendar spreads to take a positional for the next month, 6) Use strangles when uncertain of direction, 7) Use straddles when expecting results but uncertain of direction, 8) Buy futures and puts for stock insurance, and 9) Sell out of the money calls and puts in the last days of a contract period.

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    Top strategies used in derivatives trading. Includes strategies for futures and options both.

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    Strategies in derivatives

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    The document outlines 9 strategies for trading options and futures: 1) Buy calls when the market is down, 2) Buy puts when the market is up and a correction is due, 3) Buy futures and sell calls to be bullish while hedging downside, 4) Use bull spreads when the market is in a narrow range, 5) Use calendar spreads to take a positional for the next month, 6) Use strangles when uncertain of direction, 7) Use straddles when expecting results but uncertain of direction, 8) Buy futures and puts for stock insurance, and 9) Sell out of the money calls and puts in the last days of a contract period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    9 views2 pages

    Strategies in Derivatives

    Uploaded by

    Gayatri Bhatia
    The document outlines 9 strategies for trading options and futures: 1) Buy calls when the market is down, 2) Buy puts when the market is up and a correction is due, 3) Buy futures and sell calls to be bullish while hedging downside, 4) Use bull spreads when the market is in a narrow range, 5) Use calendar spreads to take a positional for the next month, 6) Use strangles when uncertain of direction, 7) Use straddles when expecting results but uncertain of direction, 8) Buy futures and puts for stock insurance, and 9) Sell out of the money calls and puts in the last days of a contract period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Strategies used

    1. BUY CALL

    When market is down, buy just out of money Call.


    2. BUY PUT

    When market is Up and correction is due, buy Put.


    3. BUY FUTURE AND SELL CALL

    When you are bullish but at the same time you want to cover any downward.
    4. BULL SPREAD

    When market is in narrow range, buy IN THE MONEY CALL and sell OUT OF MONEY CALL.
    5. CALENDER SPREAD

    When you want to take TEJI POSITION for the next month, Sell Current Month CALL and Buy Next month Call.
    6. STRANGLE

    When you are not sure in which direction the market will go, Buy CALL & PUT of the same strike price.
    7. STRADDLE

    When results are expected and you do not know in which direction the stock will move, Buy OUT OF MONEY Call and OUT OF MONEY Put.

    8. STOCK INSURANCE

    Buy Future and Buy PUT to cover down side.

    9. SELL CALL & PUT

    In the last days of the Contract Period, Sell naked OUT OF MONEY Call & Put.

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