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Trading Strategies involving options & underlying for bullish and volatile markets Abdi Ikran

Analytical Finance I 2004-10-20. Trading Strategies involving options & underlying for bullish and volatile markets Abdi Ikran

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Trading Strategies involving options & underlying for bullish and volatile markets Abdi Ikran

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  1. Analytical Finance I 2004-10-20 Trading Strategies involving options & underlying for bullish and volatile markets Abdi Ikran Fotsing Armand Luong Stephanie Takoeta Fred

  2. Purpose of the study • Explore principles of trading strategies for Bullish and Volatile markets • Use three of these strategies according to the instant performance of the market

  3. Trading Strategies Bullish Market bull spread diagonal spread buy call sell put

  4. Trading Strategies Volatile Market buy straddle buy strangle short butterfly

  5. Stockholmsbörsen/ OMX Ericsson, Telefonab. L M ser. B

  6. Trading in the real market created our portfolio in www.avanza.se. It cost SEK 99 for each transaction made, we generated a portfolio consisting of 2500 shares of ERIC B A-Long strangle a long call and a long put with the same expiration date but different strike prices.

  7. Trading in the real market created our portfolio in www.avanza.se. It cost SEK 99 for each transaction made, we generated a portfolio consisting of 2500 shares of ERIC B B-Bull Spread We sold the call and the put option and bought another call option with a lower strike price

  8. Trading in the real market created our portfolio in www.avanza.se. It cost SEK 99 for each transaction made, we generated a portfolio consisting of 2500 shares of ERIC B C-Fence we sold the option that we had in the Bull spread and bought call option

  9. Results We spent 63010 SEK and after trading we got 65648 SEK. So we made a profit of 2638 SEK

  10. Conclusion main intention: use of trading strategies for bullish and volatile markets to trade and rearrange our portfolio we did make profit, we also accurately implemented the strategies and had the feeling of real market situations of the strategies used.

  11. Thank You

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