OPTIONS S & P MIB - We have therefore seen that the futures are a bet most basic: lots of money if you pick, so you lose if you mess up in practice, to 1,000 points in the right direction makes 1,000 points, make as many in the wrong direction means lose as much. Commissions aside, it would be a gamble "fair" (in reality is not so because in the proposed sale and proposal to buy we are always at least 5 ticks of difference and that is a far more expensive cost of fees).
The reality suggests the opposite: most of the alleged gamblers lose, and lose much more than suggest a simple mathematical probability, but this is not the right place to investigate this situation.
When we are interested to focus on another fact: the fact that there are tools in which a motion to guess when I earn 1,000 points, maybe 500, on the other hand, when you miss the 1,000 points it lost only 100.
seems impossible, and instead these tools exist and have a precise name: Options!
understand the concept? Understand the difference between Futures and Options: The Future is a "neutral" behavior that has a "symmetric" in the sense that it gives you so much in a situation, so it takes away in the opposite situation. Instead, the options have a behavior "asymmetrical", that they give you, basically, a lot more than I remove in the opposite case, and, instead, they take away less than you would have earned in the opposite case.
's not all: in case of extreme situations (strong sharp declines or increases) the wrong option at best tends to zero, while the right one can multiply its value with no limit.
these circumstances, would seem incredible that someone may prefer to Futures Options (and much of "is" incredible), but I would not go so long: the Futures have a number of advantages over (or disadvantages less) in some particular market situations, as we will see later (much later). What's really amazing is that the vast majority of operators use the Futures "no" options, thus taking a number of disadvantages heavy and unnecessary risks.
But to come to understand fully the meaning of my statements, you should gain some confidence prior to the Options.
start with the simplest things: the acquisition of Options.
When I buy an Option I take a maximum risk equivalent to its cost, in the sense that the worst thing that can happen is if you clear the same, however, I have no limit as regards the possible gain.
In practice, an option I buy an "unlimited possibility to gain" on payment of a certain price or "premium", who sold it to me, by contrast, collects a "prize" but it becomes " possibility of unlimited loss. "
the option price is decided, in fact, the market, according to the calculation (not always perfect) the "likelihood" that the option has to generate earnings.
The probability - and hence the price - is basically calculated in relation three parameters: the basic option, the volatility, the time remaining to maturity.
0 comments:
Post a Comment